Continuing vocational training during short-time work

Large businesses

SMEs

Last updated more than 5 years ago

In order to promote continuing vocational training in businesses who resort to the various short-time working schemes, the State increases the benefits from 80 % to 90 % for the reimbursement of salaries paid to employees for inactive hours, provided the employees participate in training during said hours.

Businesses must request the reimbursement of the salaries paid to their employees from the National Employment Agency (ADEM).

The amount of short-time work paid for by the State varies depending on whether the employee has attended more or less than 16 hours of training per month.

Who is concerned

Eligible businesses

This measure is intended for any business which resorts to:

either short-time working due to cyclical economic problems;
or short-time working due to economic dependence;
or short-time working due to structural economic problems, provided that the business has concluded a job protection plan approved by the Minister of Labour and Employment.

Eligible employees

The measure applies to all employees falling under short-time work with their place of work in Luxembourg.

Special cases

Short-time work does not apply to apprentices or to temporary workers.

Eligible training

Any training eligible as part of a continuing vocational training plan can receive the financial aid provided for within the scope of short-time working.

The training may be:

on the job training;
inhouse training (inside the company premises);
or training provided externally.

Prerequisites

In order to apply for additional financial aid for continuing vocational training within the scope of the various short-time working schemes, the business must:

be established in Luxembourg;
hold, where applicable, a business permit granted by the competent authority;
be authorised to resort to short-time working (please see under 'Eligible businesses').

Deadlines

The business must submit an application for reimbursement within 2 months following the month where short-time working took place, on pain of debarment.

How to proceed

Refund application

Within 2 months following the month of short-time working, the employer sends the following to the ADEM:

the employee attendance lists broken down by training (or the participation certificates in the case of external training);
a claim declaration for compensatory allowances paid to workers, accompanied by:
- the overall statement of amounts for all employees placed on short-time working, as well as the copies of the payslips of the employees concerned showing the inactive hours, with or without participation in a training course;
- or an individual form for each employee placed on short-time work.

Training < 16 hours/month

If, during a given month, the employee has taken less than 16 hours of training during inactive hours, the State reimburses the employer 90 % of the salary paid in respect of these training hours and 80 % of the salary paid in respect of the other inactive hours (non-training hours) up to a maximum of 250 % of the social minimum wage.

Training ≥ 16 hours/month

If, during a month, the employee has taken 16 hours of training or more during the inactive hours, the State reimburses the employer 90 % of the salary normally received in respect of the inactive hours, even those during which the employee did not participate to any training up to a maximum of 250 % of the social minimum wage.

Social security contributions and taxes relating to the salary actually received by the employee for inactive hours (i.e. 80 % or 90 % of the normal salary) are still borne by the employer.

Non-accumulation rules

The financial aid received for training employees under the different short-time working schemes cannot be combined with financial aid for continuing vocational training granted by the Ministry of Education, Children and Youth.

Therefore, the business must not include any salary costs already subsidised as training measures in the context of short-time work when submitting the application for financial aid for continuing vocational training to the Ministry of Education, Children and Youth. If it does, the application may be rejected in full.

Only registration fees and ancillary costs may be included in these applications, provided that they have not already been reimbursed under a job protection plan.

The Ministry of Labour, Employment and the Social and Solidarity Economy will inform the Ministry of Education, Children and Youth of all the financial aid received for training employees under the various short-time working schemes or under a job protection plan.