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  • Request for short-time work
COVID-19 Insight:

Request for short-time work

19 March 2020

Short-time working “in the event of force majeure / coronavirus” 

To protect jobs and thus prevent redundancies, the Luxembourg Labour Code allows businesses to resort to various types of short-time work under certain conditions and depending on the nature of the difficulties encountered.

Considering the current context, employers can make use of short-time work due to an event of force majeure.

Given the significant threat of COVID-19, the Economy Committee unanimously validated on 18 March 2020 the proposals for principles and procedural steps. The Government decided to put in place an option for an accelerated procedure – short-time work “ in the event of force majeure / coronavirus” for businesses.

 

Accelerated procedure – short-time work “in the event of force majeure / coronavirus”

Businesses that had to or still have to cease all or part of their activities following the government decision referred to by the ministerial decree of 16 March 2020 or subsequent decisions are exceptionally directly eligible for the short-time working scheme.

Businesses experiencing a drop in activity as a result of the COVID-19 can apply for the short-time working scheme “in the event of force majeure/ coronavirus.”

 

Formalities

  • A specific form to complete is available on guichet.lu: http://guichet.public.lu/dam-assets/catalogue-formulaires/chomage-partiel/chomage-partiel-coronavirus/demande-chomage-partiel-coronavirus.docx
  • In this exceptional situation especially points I, II, III, IV and V of the form must be completed. Our Payroll and/or Accounting teams are at your disposal to provide you with the data known for points II and III.
  • In point IV of the form «COVID-19 » has to be mentioned as a cause
  • Staff representatives or, where applicable, employees, must be informed about the short-time work requests and, as far as possible have their signature
  • The applications can be submitted at any time
  • Applications registered by noon on Friday 20 March 2020 will be dealt with at the ordinary meeting of the Economic Committee on Monday 23 March 2020.
  • All application forms are to be transmitted :
    By email to [email protected], or
    By mail to the following adress
    Ministère de l’Economie – Comité de conjoncture
    19-21, boulevard Royal
    L-2914 Luxembourg

Concerned employees

  • Employees with a permanent or fixed-term employment contract employed by a company legally established in Luxembourg at the time of the short-time work, fit for work, under the age of 68, who do not receive an old-age pension, an early old-age pension or a disability pension, who are normally employed in Luxembourg and who are affiliated as an employee to Luxembourg social security are eligible. Temporary workers are excluded.
  • Apprentices, as well as person’s underemployment measures, including employment initiation contracts and employment reinsertion, are eligible.
  • People who are teleworking or on leave for family reasons are not eligible for short-time working.

 

Payroll

In case you submit a request for short-time work, please keep us informed of the decision of the Economic Committee

As soon as the information is available, please send us an Excel file with:

Id of employees/name of employees, period and hours of unemployment

Based on this information, we will calculate/adjust the salaries for March, April and possibly subsequent months

During the short-time working period, the employer has to pay to its employees, the salary due for every worked hour, as well as a compensatory allowance corresponding to at least 80% of the worker’s regular salary in respect of inactive hours.

 

Reimbursement

Your application for reimbursement of the inactive work hours must be submitted online to ADEM. The procedure will be available in the coming days on ADEM's website.

If  this measure concerns you, please wait until this system is online to submit your application for reimbursement. It will be taken into account retroactively to 16 March 2020. Our Payroll teams remain at your disposal to assist you.

If you submit a request for short-time work as a simple precautionary measure, without having recourse to it, you only have to inform the “Agence pour le développement de l’emploi” (ADEM), without any consequences for your company.

 The Government reimburses the short-time work within the limits of 80% of the normal salary capped at 250% of the social minimum wage for unskilled workers (€ 5.354,98 ind. 834,76).

Useful links :

Ministry of the Economy -> Coronavirus–Information and recommendations for Businesses -> Heading “Short-Time Work.”

https://meco.gouvernement.lu/en/dossiers/2020/coronoavirus-entreprises.html.

Guichet.luhttps://guichet.public.lu/en/entreprises/sauvegarde-cessation-activite/sauvegarde-emploi/chomage-partiel-technique/force-majeure.html

 

We remain at your disposal for any questions.

With best regards,

Your BDO Payroll Team

 

Here you will find the request for short-time work (currently only in french available)

Download

For the French text version please click here