1. How to apply for short-time working?
The company, or its representative (e.g. a fiduciary), can submit the application using an online assistant available in their business eSpace in MyGuichet.lu. The person submitting the application must have a LuxTrust product (e.g. Token, Smartcard or Signing stick) or an electronic identity card.
A link to the procedure is available on Guichet.lu .
Applications from companies that can no longer carry out their activities following a government decision will be processed directly by ADEM. Applications from other companies will go through the Economic Committee (Comité de conjoncture) for approval before being processed by ADEM.
In both cases, an advance equivalent to 80% of the total payroll of short-time working employees will be paid to the companies.
The companies will have to make a detailed statement after the end of each month on the basis of which the amounts actually due will be calculated. If the advance is greater than the amounts actually due, the firm will have to repay the excess.
2. From what date can enterprises whose activities have been discontinued by government decision benefit from short-time working for their employees?
Enterprises which can no longer operate as a result of a government decision can benefit from short-time working from the date on which the decision takes effect.
Thus, companies falling within the scope of Article 4 of the Ministerial Order of 16 March 2020 on various measures to combat the spread of the covid-19 virus (http://data.legilux.public.lu/file/eli-etat-leg-amin-2020-03-16-a149-jo-fr-pdf.pdf) may benefit from short-time working in cases of force majeure as of 16 March 2020 for employees who can no longer be employed at all or can no longer be employed on a full-time basis (all commercial and craft activities that cater for the public, with the exception of the derogations expressly provided for).
In addition, the undertakings referred to in Article 4 of the Grand-Ducal Regulation of 18 March 2020 introducing a series of measures to combat Covid-19 (http://data.legilux.public.lu/file/eli-etat-leg-rgd-2020-03-18-a165-jo-fr-pdf.pdf) may benefit from short-time working in cases of force majeure from 18 March 2020 for employees who can no longer be employed at all or can no longer be employed on a full-time basis. However, employees of these undertakings assigned to work to make building sites safe may benefit from short-time working only after the compulsory completion of this authorised work until 20 March 2020 at 5 p.m. at the latest (building sites, craft activities outside the workshop).
3. Should all the firm's staff be on short-time working or only part of the staff?
The short-time working scheme applies only to employees who are obliged to reduce their work partially or to stop working completely when the company can no longer ensure the normal functioning of its business because of the coronavirus.
The company may therefore choose to apply short-time working only for part of the staff within a department or service.
4. Does the employee have to be on short-time work for the whole month?
No. The employee may be on short-time work for part of the month only.
5. Can the employee alternate a period of actual work (onsite or homeoffice) with a period of short-time working?
Yes, as the company has not completely stopped its activity but is facing a decrease in its activities due to the coronavirus, it is possible that the employee may work full days or half-days or certain hours in onsite or in homeoffice.
However, only days, half-days or hours that are not worked will be covered by the short-time working scheme. On the other hand, periods of actual work (onsite or in homeoffice) are not covered by short-time working.
6. Can an employee on a fixed-term contract benefit from short-time working?
Yes, however, this eligibility will be limited to the duration of the contract normally foreseen and will not apply to a possible renewal of a fixed-term contract or to new contracts concluded during the period of partial unemployment.
On the other hand, a fixed-term contract that is immediately followed by a permanent contract makes the employee eligible for short-time working.
7. Can an employee benefit from short-time working if the contract was concluded before the occurrence of short-time working but does not take effect until after the occurrence of short-time working?
Yes, from the moment the employment contract takes effect.
8. Can an employee who has just come back from sick leave benefit from short-time working?
Yes, if the company and the employee meet the other conditions for short-time working.
9. Can an employee who has just come back from parental leave benefit from short-time working?
Yes, if the company and the employee meet the other conditions for short-time work.
10. Can an apprentice benefit from short-time working? What is the level of compensation allowance in relation to the apprenticeship allowance and in particular for adult apprenticeship?
Yes, the apprentice can exceptionally benefit from short-time working during the period of the coronavirus health crisis. The short-time working compensation to be paid by the employer to the apprentice has been set at 80% of the apprenticeship allowance for an initial apprentice and at 100% of the social minimum wage an adult apprentice.
In the case of an adult apprentice, the training company continues to pay the apprentice the minimum social wage for unskilled workers. The difference between the compensation allowance for short-time working and the minimum social wage is reimbursed to the training company by the Employment Fund. This reimbursement will be made via the monthly short-time working statement (form available on Guichet.lu by the end of April 2020 at the latest).
11. Can an apprentice whose apprenticeship contract expires during the period of short-time working and who is taken over by his company with an open-ended contract benefit from short-time working?
Yes, an apprentice (initial or adult) whose apprenticeship contract expires during the period of health crisis and who is taken over by his training company can benefit from short-time working beyond the end of the apprenticeship contract.
12. Do employees have to take their holiday entitlements dating from 2019 before going on short-time working?
Yes, before being eligible for short-time working, all possibilities of maintaining a normal level of employment by the company's own means must be exhausted. Holiday arrangements are part of the company's own means of maintaining a normal level of employment. Employees must therefore take their holiday dating from 2019 (and the previous years) before being eligible for short-time working. Consequently, this does not concern the holiday entitlements for the year 2020 and the time saving account (CET).
13. How is the short-time working allowance that the employer must pay to the employee calculated?
The rate of the statutory compensation allowance is set at 80% of the employee's normal gross hourly wage, but may not exceed the amount of 250% of the social minimum hourly wage payable to an unskilled employee over the age of eighteen (currently EUR 5,354.98 on a monthly basis at index 834.76).
The normal hourly wage is to be understood and counted separately:
1) the highest basic wage which forms part of the base applied during one of the three calendar months preceding the start of the period of short-time working ;
2) the average of the salary supplements and accessories which form part of the bases for the twelve calendar months preceding the month before the occurrence of the short-time working.
Definition: The supplements and accessories that form the basis of the compensation allowance are all elements of remuneration payable monthly in cash, with the exception of remuneration for overtime and the increases provided for by contractual, legal or regulatory provisions.
If this reference period is not fully covered by an activity subject to insurance, the average is calculated on the basis of the fully covered calendar months.
In the absence of a single fully covered month, the basic salary as well as the supplements and accessories are taken into account according to their value agreed in the employment contract.
If the above calculation indicates a compensation allowance for short-time working lower than the social minimum wage for unskilled employees, the employer must pay the social minimum wage. This provision starts as of 16 March and will apply during the COVID-19 crisis
14. What is the level of reimbursement to which the employer is entitled for compensation benefits paid during short-time working?
The legal compensation allowance advanced by the employer is reimbursed by the Employment Fund. Unlike the schemes for involuntary layoff due to bad weather and accidental or technical involuntary layoff, the first 16 hours are also reimbursed by the Employment Fund.
Reimbursement is limited to the legal indemnity to which the employee affected by partial unemployment is entitled, which is limited to 250% of the hourly social minimum wage payable to an unskilled employee over the age of eighteen (currently EUR 5,354.98 on a monthly basis at index 834.76).
Any difference between the amount of the short-time working compensation and the social minimum wage for unskilled workers will be borne by the Employment Fund. This provision starts as of 16 March and will apply during the COVID-19 crisis.
The compensation allowance for short-time working is subject to the social security contributions and taxes generally applicable to wages, with the exception, however, of accident insurance contributions and contributions due in respect of family benefits.
Employers' social security contributions remain the responsibility of the employer. This applies also for the difference between the amount of the short-time working compensation and the social minimum wage for unskilled workers borne by the Employment Fund. The employer's charges will not be reimbursed.
15. Can an employee interrupt his parental leave exceptionally to come to work if necessary?
Yes, given the current context of the COVID-19 pandemic, it is exceptionally possible for an employee, on the basis of an agreement with the employer and the social security, to interrupt a parental leave currently in progress in the event of a professional obligation and the need to return to work.
As the interruption of the leave is considered to be motivated by an external cause, the compensation already received will not be refunded.
The portion of parental leave remaining at the time of interruption may, subject to the employer's agreement, be taken at the end of the interruption.
To request the interruption of parental leave, a form available at www.cae.lu must be completed and sent to the Luxembourg Future Fund (Caisse pour l’avenir des enfants).
16. Can an employee who had submitted an application for holiday and which had been accepted by the employer withdraw it while the company is on short-time working during the period of the holiday applied for?
No. Once the holiday is requested by the employee and approved by the employer, it can no longer be withdrawn unilaterally by the employee and must be taken at the period requested.
17. Can an employee who should be covered by the short-time working scheme be granted leave for family reasons?
No, short-time working takes precedence over leave for family reasons. Since the employee who is affected by short-time working is in principle released from any work, he or she is available to care for a dependent child without having to resort to family leave.
For this reason it is obvious that the employee who is on short-time working is not entitled to family leave. The same applies to an employee whose partner or spouse is on short-time and therefore available to look after the common child or a child belonging to the same household.
18. Can a self-employed person or a freelancer benefit from short-time working?
No, not for the self-employed person. But the employees he employs are eligible.
In the context of the Covid-19 crisis, the General Directorate for Small and Medium-Sized Enterprises has set up an emergency fund for very small companies and self-employed persons.
19. Are training measures possible for employees on short-time working in cases of force majeure involving an increase in the rate of compensation to 90%?
No. Such training measures are only possible during the actual periods of partial unemployment due to layoff because of economic dependency respectively layoff due to structural dependency within the framework of a job maintenance plan approved by the Minister of Labour.
20. Is there a maximum limit to short-time work coverage?
Yes, the reduction in working time covered by the short-time working scheme cannot currently exceed 1,022 hours per calendar year per full-time employee. For employees working part-time the 1,022 hours are pro-rated.
21. Can an employee seconded abroad benefit from short-time working?
Yes, a seconded employee who is affiliated to the Luxembourg social security system can benefit from short-time working if he is employed by a company legally established in Luxembourg and his normal place of work is in Luxembourg.
22. Can an employee seconded from abroad to a Luxembourg company benefit from partial unemployment?
No. As this employee is not insured as an employee with the Luxembourg social security bodies, he does not meet the conditions for benefiting from short-time working.
23. Which companies are eligible for the new short-time working scheme due to COVID-19?
Companies that can no longer carry out their activities following a government decision are automatically eligible for short-time working scheme without the need for the agreement of the economic conditions committee.
All other companies that have to suffer a drop in economic activity due to the coronavirus crisis must receive the agreement of the Economic Committee in order to be eligible for short-time work.
Temporary employment agencies are also eligible with regard to their employees whose assignment contract continues but who can no longer carry out their activity.
Both types of companies must apply using the same form at the MyGuichet.lu.
24. Which employees are eligible for the new partial unemployment scheme due to COVID-19?
- Employees on permanent and fixed-term contracts (the contracts must be in force at the time of the occurrence of the force majeure event)
- Apprentices in initial and adult learning.
25. How much compensation is paid to companies?
During the period of short-time working, the state shall pay compensation up to 80 % of the salaries. 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 compensation and the social minimum wage for unskilled workers will be borne by the Employment Fund.
26. What about companies that have already applied on the basis of the old application form?
The applications already received by the secretariat of the Economic Committee by mail, email or fax are being processed. In view of the extremely large number of applications received, this processing may take until 3 April 2020. Companies whose application was incomplete and therefore cannot be processed will be contacted by ADEM.
27. When can companies apply for short-time working for April 2020 wages?
Applications can be made from 1 April 2020.
28. Is there a deadline for submitting the application?
The application must be made for the current month and the previous month.
29. Can a request be made in April for March 2020 salaries?
Yes (cf previous question)
30. Which form should be used to make a detailed statement after the end of the month?
This form is under development and will be available on the website guichet.lu.
31. I am a company that applied for short-time work before the Coronavirus crisis. Do I have to apply online or use the old form?
The online application is exclusively intended for short-time working in case of force majeure Coronavirus. If the application concerns structural or ecoomic short-time work, the old system must be used.
32. CIE: Under normal circumstances, 50% of the salary and 100% of the employer's contributions are covered by ADEM. Under the short-time working scheme, 80% of the salary will be reimbursed by the Fonds pour l'emploi. What about social security contributions? Is it necessary to use the usual form for the reimbursement request or another one?
CIEs and CREs are not eligible for short-time working. Under the CRE, the employer's contribution to the salary paid by ADEM is now 0%. Under the CIE, promoters will be reimbursed 100% of the compensation they have to pay to young jobseekers.
33. I just submitted the online application. However, I was not asked to submit the additional documents (i.e. individual sheets on hours spent in short-time working, payment request). When do I have to hand in these documents?
These documents have to be submitted together with the detailed statement after the end of the month.
34. Are childcare facilities (crèches) eligible for short-time working given the fact that they had to close due to government decisions?
In principle yes. Childcare facilities must submit their applications via the online form. The Comité de conjoncture will take a decision on a case-by-case basis after consulting the Ministry of Education, Children and Youth.
35. What is the compensation for employees who are unable to work (sick leave) during their period of partial unemployment?
An employee who is incapable to work (sick leave) during a period short-time working is entitled to 100% of his/her salary.
From 1 April until the end of the month in which the state of crisis ends, the health insurance will directly cover incapacity for work for employees and non-employees. Consequently, these days of sick leave will be reimbursed at 100% by the CNS (and no longer at 80% by the Mutualité des Employeurs) and these days will not be taken into account in determining the risk class of companies with the Mutualité des Employeurs.
36. When does the protection against dismissal enjoyed by employees during short-time working cease?
As soon as short-time working ends, a dismissal for reasons not related to the individual can be pronounced in accordance with the legal procedures and deadlines.
37. What about trial periods during the employee's period of short-time working?
For the companies directly affected by the closure decisions taken by the Government and for those admitted to the short-time working scheme in cases of force majeure Covid-19, the trial clause provided for in an apprenticeship contract, an open-ended employment contract, a fixed-term employment contract or an assignment contract is suspended by derogation from Articles L. 111-3, L. 121-5, L. 122-11 and L. 131-7 of the Labour Code as from the effective date of the Government decision respectively of the admission of the employee concerned to this special partial unemployment scheme.
Source: http://www.legilux.lu/eli/etat/leg/rgd/2020/04/01/a223/jo
38. Holidays and short-time working: How does it work?
If a public holiday (e.g. Easter Monday) falls during the period of short-time work, this day can be compensated under certain conditions:
a) Companies that can no longer operate due to a government decision and in which all employees are on short-time working:
- The public holiday is compensated for short-time work at a minimum rate of 80%. Thus, the employer will pay his employee 80% of his gross hourly wage and will be reimbursed 80% by the Employment Fund.
(b) Enterprises that continue to work and in which some of the employees have been placed on short-time working:
- Employees who are on short-time working on the day before as well as the day after the public holiday are entitled to short-time working compensation for the public holiday. The employer will pay the employee at least 80% of his/her gross hourly wage and will be reimbursed 80% by the Employment Fund.
- For employees who do not meet the above criteria, the employer must pay them 100% for the public holiday.