Short-time working due to economic dependence

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Demande d'octroi de chômage partiel
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In order to protect jobs and thus prevent redundancies, the Luxembourg labour law allows businesses, under certain conditions, to resort to various short-time working (chômage partiel) schemes depending on the nature of the difficulties encountered.

The short-time working scheme due to economic dependence is aimed at businesses facing economic difficulties following the loss of one or more of their main customers or due to difficulties encountered by their customers.

Any business that makes use of short-time work due to economic dependence commits not to lay off employees for economic reasons.

During the short-time working period, the State reimburses the business 80 % of the salaries normally received by the employees during the non-work periods. Reimbursement is limited to 250 % of the social minimum wage. The business still has to pay social security contributions and salaries in respect of hours worked.

Who is concerned

Organisations/businesses concerned by short-time working in cases of economic dependence

Short-time work due to economic dependence can be applied to businesses who:

  • primarily work for another business whose volume of orders has dropped significantly or who has cancelled the existing contract;
  • work for one or more other businesses (e.g. through subcontracting) which are in turn required to resort to short-time work in Luxembourg.

Short-time working due to economic dependence cannot be used to compensate for a lack of work or orders due to seasonal factors In this precise case, it is advisable to negotiate a longer reference period than the stipulated legal period (1 month) at the appropriate levels, if the collective agreement does not already provide for this.

Eligible employees

The short-time working scheme for economic dependence can be applied to employees (on permanent and fixed-term contracts) whose place of work is in Luxembourg and who:

  • are not covered by a certificate of incapacity for work; and
  • do no longer have any work to do or can no longer be occupied on a full-time basis when the company can no longer ensure the normal operation of its activity.

Short-time working schemes cannot be applied to apprentices, to temporary workers or workers having tendered/received their notice.

Prerequisites

To apply for short-time work due to economic dependence, the business must:

  • be established in Luxembourg;
  • hold, where applicable, a business permit granted by the competent authority;
  • be suffering from a significant fall in activity due to economic dependence on one or more of its main clients;
  • undertake to not make any employee redundant for economic reasons.

Short-time working due to economic dependence comes within the scope of complementary job protection measures which may, if the company's economic situation so requires, be used consecutively and/or applied simultaneously.

Preliminary steps

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 (French, Pdf, 462 Kb) or without staff delegation (Pdf, 586 Kb), that the employees respectively the staff delegation, and, where applicable, the trade unions (in the event of a collective agreement) have been informed of the application for short-time working.

In addition to the application to be submitted via the MyGuichet.lu procedure, the company must send an email to the Secretariat of the Economic Committee (chp-ld-cf@eco.etat.lu) explaining and documenting its case economic dependence before the 12th of the current month.

Deadlines

Short-time working applications must be submitted at the latest by the 12th day of the month preceding the requested short-time working period (for example, before 12 March 2021 for a short-time working application relating to the month of April 2021).

Applications cannot be submitted outside these dates. Short-time work benefits can never be granted retroactively.

How to proceed

Filing an application

The employer, or their representative (e.g. a fiduciary), must submit the application to benefit from the short-time working scheme electronically through their business eSpace on the MyGuichet.lu platform. The person submitting the application needs:

  • a LuxTrust product; or
  • an electronic identity card.

All requests made through any other communication channel will not be considered and will not be processed.

Using MyGuichet.lu

There are 3 possible scenarios:

  • The person submitting the application is a new user on MyGuichet.lu and does not yet have an eSpace:

    The creation of the eSpace is done in 2 steps:
    1. Registration of a user;
    2. creation of a business eSpace.

A tutorial in video (mp4, 9.03 Mb) or PDF format (Pdf, 1.31 Mb) is available to guide you.

  • The person submitting the application is a user of MyGuichet.lu and already has a private eSpace: he or she will have to create a new business eSpace.

A tutorial in video (mp4, 4.46 Mb) or pdf format (Pdf, 1.05 Mb) 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.


Consult the help section on MyGuichet.lu.

Admissibility of the application

The short-time work scheme due to economic dependence is generally applied on a short-term basis only. It may be approved for extended periods in the event that the business works as a sub-contractor or for sub-contractors of businesses that are in turn resorting to short-time work in Luxembourg.

The Economic Committee assesses the application for short-time work and submits a written opinion to the Government Council (Conseil de Gouvernement) who will decide whether or not to allow short-time work.

The Economic Committee sends an information email to the company informing it that the acceptance or refusal letter can be consulted in their eSpace on MyGuichet.lu.

If the application is approved, the business is authorised to use short-time working for as long as the consequences of the event make it impossible to continue its normal business activity.

The business must nevertheless renew its application each month and inform the secretariat of the Economic Committee of any change in the situation.

Validity period

Businesses must renew their application each month by logging back into the MyGuichet.lu assistant.

Amount of allowance

The payment of short-time working benefits is made on the basis of a statement.

During the short-time working period, the State reimburses the employer the compensatory allowance corresponding to 80 % of the normal hourly salary received by the employee.

The reimbursement is limited to 250 % of the social minimum wage for unskilled workers aged 18 or over. However, if this calculation indicates that the compensatory allowance ends up being lower than the social minimum wage for unskilled workers, the social minimum wage will be used instead.

Submitting the statement

Businesses must complete the online procedure on MyGuichet.lu so that ADEM can draw up a statement.

The declarant also has the possibility of downloading an XML list (French, Zip, 2 Kb) 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 concerned will need to be filled in. ADEM will receive the other necessary data from the Joint Social Security Centre (CCSS).

The statement, together with the individual monthly statements (individual forms), must be submitted to ADEM, on pain of debarment, within 2 months of the month short-time working occurred.

Sanctions

All subsidies granted on the basis of deliberate misrepresentations will have to be repaid.

Subsidies granted on the basis of deliberate misrepresentations and as soon as there is deliberate failure to pay the compensatory allowance to one or more employees concerned or if the subsidies were used to other ends than the payment of salaries must be paid back. The beneficiary must reimburse the totality of the amounts received on the basis of all applications submitted and the benefits of short-time working will be withdrawn with immediate effect from the business concerned.

These offences are punishable by a fine of between EUR 251 and EUR 5,000.

Online services and forms

Application for short-time work (to be submitted to the Ministry of the Economy)

Online services

Demande d'octroi de chômage partiel

Downloadable forms

Note: view tips for using PDF forms.

Déclaration de la délégation du personnel certifiant avoir été informée de la demande de chômage partiel (si une délégation de personnel existe)

Last update 18.10.2023

PDF462 Kb

Déclaration d’information signée par chaque salarié concerné par le chômage partiel (s'il n'existe pas de délégation du personnel)

Last update 18.10.2023

PDF586 Kb

Statement of short-time work (to be submitted to ADEM)

Online services

ADEM : Décompte pour le chômage partiel

Downloadable forms

Note: view tips for using PDF forms.

Liste XML pour le décompte

Last update 18.10.2023

ZIP2 Kb

Décompte mensuel individuel

Last update 18.10.2023

PDF146 Kb

Who to contact

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Related procedures and links

Procedures

Job protection plan

Links

Further information

Legal references

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