Business

Measures for short-time working in cases of force majeure related to the coronavirus

In view of the scale of the COVID-19 threat and the tangible repercussions on the lives of companies and their employees, the Luxembourg government has decided on a "force majeure / coronavirus" short-time working scheme with an accelerated procedure for all Luxembourg companies impacted by the coronavirus.
An online system for claiming reimbursement for inactive hours in the context of short-time working is currently being developed and will be available in the coming days on the websites of ADEM and Guichet.lu. We will keep you informed and let you know when the new form is available.

Please note:

The application for short-time work:

  • must be communicated to the staff representatives and, if possible, be signed by them;
  • can only apply to:
    • your employees on permanent or fixed-term contracts who:
      • do not receive any old-age or disability pension;
      • are insured with the Joint Social Security Centre (CCSS);
    • your apprentices;
    • persons benefiting from an employment programme (employment initiation contract or employment reintegration contract, etc.);
  • does not apply to temporary workers.

Payment of salaries and social contributions by the employer

During the period of short-time work, the employer pays each employee:

  • the salary due for every hour worked;
  • as well as a compensatory allowance corresponding to at least 80 % of the worker's normal salary in respect of inactive hours.

Employers also have to continue to pay the following to the competent public administrations:

  • social contributions (the employer's and the employee's share) and withholding tax on salaries paid for hours worked;
  • and also social contributions (the employer's and the employee's share) and withholding tax on the compensatory allowance paid for inactive hours, with the exception of the following employer's contributions:
    • accident insurance contributions;
    • and family benefits.

In the event of an employee on sick leave during the period of short-time work, the employer continues to pay the salary and compensatory allowances as in any case of incapacity for work.

Furthermore, on gouvernement.lu you can consult the FAQ on the impacts of the coronavirus on businesses in Luxembourg.

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