In order to protect jobs and thus prevent redundancies, Luxembourg labour law allows businesses to benefit from a temporary weather-related layoff (chômage dû aux intempéries) subsidy under certain conditions.
Businesses carrying out their activity on building sites may submit an application to benefit from this scheme to the employment administration (Agence pour le développement de l’emploi - ADEM) in the event that their workplace becomes unfit for work due to bad weather conditions.
During the weather-related layoff period, the State reimburses the business 80 % of the salaries normally received by employees as of the 17th hour of monthly inactivity.
Who is concerned
Any business in the building and civil engineering sectors as well as in the related skilled crafts segments carrying out its normal activity on building sites may apply for a weather-related layoff subsidy if its workplace has become unfit for work or if carrying out works is impossible or dangerous due to bad weather conditions, such as rain, cold, snow, frost, thaw and exceptional heat.
The weather-related layoff scheme can be applied to all employees and apprentices in these sectors with their place of work in Luxembourg.
In order to benefit from a weather-related layoff subsidy, the business must:
- be established in Luxembourg;
- hold a business permit;
- belong to the building or civil engineering sector or a related skilled crafts segment and carry out its normal activity on building sites;
- be unable to second inactive personnel to other businesses, building sites or workshops.
The employer or its representative at the workplace must consult the duly-appointed staff representative at the workplace (a member of the employee committee or a worker appointed by the employee committee) before deciding to halt work.
The employer must inform ADEM of the weather-related layoff at the latest on the business day following the day on which work was interrupted.
How to proceed
If full-time work resumes for at least one week, the business must renew its temporary weather-related layoff declaration each month.
Maximum duration of weather-related layoff
The State will cover a maximum of 350 working hours per worker per calendar year.
In the event of extreme weather conditions, this limit may be increased to a maximum of 500 working hours by decision of the government.
During the weather-related layoff period, the employer advances a compensatory allowance of at least 80 % of the salaries corresponding to the inactive hours, subject to a limit of 250 % of the minimum salary for unskilled workers.
The employer must bear all costs for the first 16 inactive hours per calendar month.
Reimbursing the business
As of the 17th inactive hour, the Employment Fund (Fonds pour l'emploi) reimburses up to 80 % of the average gross hourly remuneration actually earned by the worker during the 3 months preceding the month in which the inactivity occurred.
At the beginning of the month following the month in which the inactivity occurred, the employer sends ADEM a claim declaration in respect of temporary weather-related layoff.
The claim declaration must be accompanied by the following documents:
- an individual form for each employee concerned;
- a statement of the amounts to be borne by the State;
- a supporting statement.