Short-time work during the economic recovery period
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.
The government 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.
Organisations/Companies concerned – 4 possible scenarios
1. Industrial Businesses - short-time working scheme due to economic problems
- No redundancies for economic reasons
2. Businesses in the HORECA, tourism and events sectors - short-time work due to structural economic
problems
- Redundancies for economic reasons up to a limit of 25% of their staff (workforce as at 30 June 2020)
3. Businesses in other economic sectors - short-time work due to structural economic problems
- No redundancies for economic reasons
- Number of employees on short-time work <= 25 % of the total workforce (as at 30 June 2020) for the months of July and August
- Number of employees on short-time work <= 20 % of the total workforce (as at 30 June 2020) for the months of September and October
- Number of employees on short-time work <= 15 % of the total workforce (as at 30 June 2020) for the months of November and December
4. 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.
- Drawing up of a restructuring plans
Formalities
- The short-time work application form has to be submitted each month using secure authentication (Luxtrust product) via MyGuichet.lu.
Our Payroll teams remain at your disposal to assist you. In order to assist you please send us the following documents and information as soon as possible :
- Declaration signed by the staff delegation certifying that they have been informed of the short-time work request
- Declaration signed by each employee concerned by the short-time working
- The company’s IBAN account and mandatory a bank identity statement in PDF or JPG
- The number of employees (apprentices and temporary employees excluded) (full-time equivalent) concerned by the short-time working for each month
- Turnover (tax excl.) 2019 and the number of considered months
- Turnover (tax excl.) for the 3 months preceding the request
Concerned employees
Employees with a permanent or fixed-term employment contract employed by a company legally established in Luxembourg at the time of the short-time work, fit for work, under the age of 68, who do not receive an old-age pension, an early old-age pension or a disability pension, who are normally employed in Luxembourg and who are affiliated as an employee to Luxembourg social security are eligible.
Apprentices, CIE, CAE, CRE, trainees, temporary workers and employees on notice period are excluded.
Payroll
In case you submit a request for short-time work, please keep us informed and send us an Excel file with:
Id of employees/name of employees, period and hours of unemployment
Based on this information, we will calculate/adjust the salaries for July to December 2020.
Deadlines
The deadlines for applying for short-time working in relation with the economic recovery for the months of July and August 2020 are as follows:
- applications for July 2020 must be made via MyGuichet.lu between 20 and 26 June 2020 inclusive;
- applications for August 2020 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).
During the short-time working period, the employer has to pay to its employees, the salary due for every worked hour, as well as a compensatory allowance in respect of inactive hours.
The rate of the statutory compensation allowance is set at 80% of the employee's normal gross hourly wage, without being lower than the social minimum hourly rate for unqualified employees or exceed the amount of 250% of the social minimum hourly wage payable to an unqualified employee over the age of eighteen (currently EUR 5,354.98 on a monthly basis at index 834.76).
Reimbursement
During the period of short-time working, the government shall pay compensation up to 80 % of the salaries. Reimbursement is limited to 250 % of the social minimum wage for unskilled employees aged 18 or over (€ 5.354,98 indice 834,76).
After the end of the month in which short-time working occurs, businesses must complete, an online procedure on MyGuichet so that ADEM can draw up a statement.
Our Payroll teams remain at your disposal to assist you.
Useful links:
Guichet.lu:
We remain at your disposal for any questions.
With best regards,
Your BDO Payroll Team
Here you will find the supporting documents to add to the application for July to December 2020:
Declaration staff delegation Declaration of wage information
For the French text version please click here.