In order to continue to support companies and their employees impacted by the COVID-19 crisis, special arrangements for short-time working remain in force until 31 December 2020. These arrangements, which apply to all businesses during this period of economic recovery, take into account that certain sectors or economic branches have been more severely impacted than others have and will therefore resume their pre-crisis level of activity later, or even fail to do so in the near future.
According to the arrangements in force until the end of the year, the state continues to pay the compensatory allowance of 80 % of salaries during periods of short-time working. Under certain conditions, the businesses concerned may lay off workers.
Who is concerned
The social partners have agreed on 4 possible scenarios for businesses to benefit from the short-time working scheme during the economic recovery period:
- industrial businesses will continue to benefit from the short-time working scheme due to economic problems in order to be able to react to disruptions on international markets (e.g. supply problems).
By applying the short-time working scheme due to economic problems, industrial businesses undertake not to make people redundant for economic reasons;
- the situation of businesses in the HORECA, tourism and events sectors is particularly difficult. Businesses in these vulnerable sectors benefit from simplified access to short-time work due to structural economic problems, with no limit on the number of employees concerned.
Where there is a proven need, these businesses will be able to resort to redundancies for economic reasons up to a maximum limit of 25 % of their staff (in relation to the total workforce as at 30 June 2020) until 31 December 2020. It has been agreed between the social partners that, in the event of a return to better fortunes, businesses that have made redundancies will, in the event of subsequent recruitment of staff, have to re-employ their former employees who have been made redundant as a matter of priority.
It should be noted that the common law provisions of the Labour Code concerning collective redundancies remain fully applicable in some cases;
- businesses in other economic sectors (i.e. those not involved in industry, HORECA, tourism, events, the financial or insurance sectors) may resort to short-time working due to structural economic problems using the simplified procedure, provided that they do not make redundancies. The number of employees on short-time work may not exceed 25 % of the total workforce (as at 30 June 2020) for the months of July and August, 20 % of the total workforce for the months of September and October and 15 % for the months of November and December 2020. In this context, employee means all employees that have been declared for short-time work during the current month, regardless of the number of hours of short-time working.
Exceptionally, businesses which, in view of the particularly significant impact of the pandemic on their activities, fail to respect the above thresholds, must introduce a motivated recovery plan in the case of small businesses with fewer than 15 employees, or a job protection plan in accordance with the provisions of the Labour Code for businesses with more than 15 employees;
- businesses in vulnerable sectors (HORECA, tourism, events) making more than 25 % of their total workforce (as of 30 June 2020) redundant as well as all businesses, irrespective of the sector to which they belong, which make redundancies will have to resort to short-time working due to structural economic problems. In these cases, the short-time working scheme will only be granted if the businesses draw up restructuring plans. These plans must be drawn up in the form of a recovery plan in the case of small businesses with fewer than 15 employees, or in the form of a job protection plan in accordance with the provisions of the Labour Code in the case of businesses with more than 15 employees.
The short-time working scheme may apply to employees (on permanent and fixed-term contracts) who are not covered by a certificate of incapacity for work and who can no longer be employed at all or can no longer be employed on a full-time basis when the company can no longer ensure the normal operation of its business.
Temporary employment agencies are also eligible with regard to their employees whose assignment contract continues but who can no longer carry out their activity.
Apprentices are not eligible for the short-time working scheme.
Before submitting an application via MyGuichet.lu, the employer is required to confirm, by means of the declaration provided for this purpose for businesses with or without staff delegation, that the employees respectively the staff delegation and, where applicable, the trade union organisations (in the event of a collective agreement) have been informed of the application for short-time working.
The time limits for applying for short-time working related to the economic recovery are as follows:
- applications for August must be made via MyGuichet.lu between 1 and 12 July 2020 inclusive.
- from September until the end of 2020, applications for short-time working must be sent at the latest on the 12th day of the month preceding the period of short-time working requested (for example, at the latest on 12 September for the application for short-time working in October).
Applications cannot be submitted outside these dates. Short-time work benefits can never be granted retroactively.
How to proceed
Filing an application
Regardless of the situation that applies to the business, the employer, or their representative (e.g. a fiduciary), must submit the application to benefit from the short-time working scheme electronically in their business eSpace on the MyGuichet.lu platform. The person submitting the application needs:
- a LuxTrust product (e.g. Token, Smartcard or Signing stick); or
- an electronic identity card.
How to use MyGuichet.lu?
There are 3 possible scenarios:
- The person submitting the application is a new user on MyGuichet.lu and does not yet have a private eSpace:
The creation of the eSpace is done in 2 steps:
- registration of a user;
- creation of a business eSpace.
A tutorial in video or PDF format is available to guide you.
- The person submitting the application is a user of MyGuichet.lu and already has a private eSpace: they will have to create a new business eSpace.
A tutorial in video or PDF format is available to guide you.
- The person submitting the application already has a business eSpace for the company: the existing business eSpace can be used.
This online application tool was developed by the Ministry of the Economy and ADEM, with the support of the Government IT Centre (CTIE). Each request will be treated confidentially.
All requests made through any other communication channel will not be considered and will not be processed.
Businesses must renew their application each month by logging back into the MyGuichet.lu assistant.
The short-time working scheme in relation with the economic recovery remains in force until 31 December 2020.
Amount of allowance
The payment of short-time working benefits is made on the basis of a statement.
During the period of short-time working, the state covers the compensatory benefit up to an amount representing 80 % of the salaries.
The reimbursement is limited to 250 % of the social minimum wage for unskilled workers aged 18 or over. This compensation may not be less than the amount of the social minimum wage for unskilled workers. Any difference between the amount of the compensatory benefit and the social minimum wage for unskilled workers will be borne by the Employment Fund.
Submitting the timesheet statement
After the end of the month in which short-time working occurs, businesses must complete an online procedure on MyGuichet.lu so that ADEM can draw up a statement.
The declarant also has the possibility of downloading an XML list before starting the procedure on MyGuichet.lu.
In practice, for each month of short-time working, the employer or their representative receives an email/mail from ADEM inviting them to fill in the online form.
On this form, only the names and national identification numbers of the employees and/or apprentices concerned will need to be filled in. ADEM will receive the other necessary data from the Joint Social Security Centre (CCSS).
In the event of false declarations or failure to pay compensation, the beneficiary shall be liable to a fine of between EUR 251 and EUR 5,000.
Forms / Online services
Demande de chômage partiel lié à la relance économique
Déclaration de la délégation du personnel certifiant avoir été informée de la demande de chômage partiel
Déclaration d’information signée par chaque salarié concerné par le chômage partiel
Liste XML pour le décompte
Who to contact