Ghent System

What is Ghent System ?

  
‘Ghent System’ is the system used to pay unemployment benefits to unemployed individuals by trade unions instead of the government or any government authorized agency.
 
It is known as the ‘Ghent system’ as it was first implemented in Ghent, which is a city in Belgium. However, currently Belgium uses a hybrid system where the benefits are distributed by both the government and the trade unions.
 
Currently, it is the primary source of welfare payments in Denmark, Iceland, Finland and Sweden. Hence, employees from these countries are always a part of some kind of trade union.
 
Another important point to consider is that, in the case of the hybrid models, the state benefit would be a fixed sum for every employee while the trade union benefit depends on the previous earnings.

More HR Terms

Full-time Equivalent

What is Full-time Equivalent?   ‘Full-time Equivalent’ or ‘FTE’ refers to the multiplying factor which can be used to calculate the salary of a part-time

Cost-per-Hire

What is Cost-per-Hire ? ‘Cost-per-Hire’ is the overall cost of hiring an employee for the company. It includes the costs associated with advertising the vacancy

Functional Job Analysis

What is Functional Job Analysis ?    ‘Functional Job Analysis’ refers to the qualitative analysis of job designations and gathering data based on the employee’s

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’