Reimbursement of short-time working allowances - introduction of a compensation mechanism

PrPress release by: Ministry of Labour, Employment and the Social and Solidarity Economy

 

The Economic Committee, chaired by the Minister of Labour, Employment and the Social and Solidarity Economy, Dan Kersch, and the Minister of the Economy, Franz Fayot, reached an agreement on how to proceed with the reimbursement of short time working for the months of July to December 2020.

Taking into account the concerns of the various stakeholders and with the aim to simplify administrative procedures, the Minister of Labour, Employment and the Social and Solidarity Economy, Dan Kersch, proposed to compensate negative balances resulting from statements for the months of March to June 2020 with the short-time working subsidies due for the months of July to December 2020. The Economic Committee has agreed to this way of proceeding.

The short-time working scheme in the event of force majeure related to the coronavirus crisis was put in place during the period from March 18, 2020 (start of the health crisis) until June 30, 2020. Due to the magnitude of the coronavirus crisis and its tangible repercussions on companies and their employees, the Luxembourg government has decided to set up the short-time working scheme "force majeure / coronavirus" with an accelerated procedure for all companies that have had to completely or partially shut down their activities following government decisions. During this period, companies received an advance payment as soon as their demand was approuved. After the end of the month in which short-time working occurred, ADEM prepared a statement based on the declarations provided by the company.

In this statement the employer receives a detailed overview for each month concerned, both for a possible outstanding compensatory allowance (= positive balance) and for the possible amount of allowances that were received too much ( overpayment = negative balance).

ADEM has now completed the processing and sending of the short-time working statements under short-time working scheme “force majeure related to the coronavirus crisis” (March to June 2020).

In this context, three scenarios may occur:

  • In the event that the short-time working statements for the months of March, April, May and June 2020 showed a positive balance, ADEM has transferred the outstanding allowances to the company concerned.
  • In the event that the short-time working statements for the months of March, April, May and June 2020 show a negative balance and the company concerned has not yet proceeded to the reimbursement, this overpayment will be compensated with the short-time working allowances due for the month of July 2020 (and, where applicable, the subsequent months), provided that the demand of short-time working has been approuved by the Economic Committee for the month of July 2020 (and, where applicable, subsequent months). This compensation mechanism will be put in place from mid-October 2020.
  • Companies which have not submitted a short-time working demand for the month of July and / or the following months will have to reimburse the overpayment of the advances received for the months of March to June 2020 within 30 days on the bank account of the State Treasury indicated in the reference number of the file.

 

 

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