Short-time working – FAQ

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

• a LuxTrust product (e.g. Token, Smartcard or Signing stick); or
• an electronic identity card.

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.

No. The employee may be on short-time work for part of the month only.

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.

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.

Yes, from the moment the employment contract takes effect.

Yes, if the company and the employee meet the other conditions for short-time working.

Yes, if the company and the employee meet the other conditions for short-time work.

Short-time working is not applicable for apprentices. 

Exceptionnally, an apprentice could benefit from short-time working under the COVID-19 short-time working scheme (18 March to 30 June). 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 available on Guichet.lu.

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 on basis of a permanent contract can benefit from short-time working beyond the end of the apprenticeship contract.

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. 

From July 2020: In the event of employee participation in a training measure organised by the employer or the State, the rate is increased to 90%. This rate is applied for each actual hour of training if the number of hours of training is less than 16 hours per month. If the number exceeds 16 hours per month, the rate applies for the entire month. 

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.

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 until 30 June 2021.

Important: 

Employers are still required to pay wages within the statutory time limits, regardless of the reimbursement of the compensation allowance paid by ADEM.

The compensation allowance reimbursed by ADEM to companies can only be used to pay the salary and under no circumstances to pay other expenses.

The legal compensation indemnity advanced by the employer is reimbursed by the Employment Fund. Unlike the schemes for involuntary lay-offs due to bad weather and accidental or involuntary technical unemployment, the first 16 hours are also reimbursed by the Employment Fund.

Reimbursement is limited to the legal indemnity to which the employee affected by short-time working is entitled, which is limited to 250% of the minimum hourly social wage payable to an unskilled employee over the age of eighteen.

If, as provided for in question 11, the rate of the social minimum wage for unskilled employees replaces the compensation allowance, any difference between the amount of the compensation allowance and the social minimum wage for unskilled employees is reimbursed to the employer by the Employment Fund during the period from 18 March 2020 (the beginning of the state of health crisis) until 31 December 2020.

The compensation allowance is subject to the social and tax charges generally provided for in respect of wages, with the exception, however, of accident insurance contributions and contributions due in respect of family benefits.

Employers' social security contributions remain at the expense of the employer. This also applies to the difference between the amount of the compensatory allowance and the non-qualified minimum wage. The employer's contributions will not be reimbursed. 

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.

Only if the employee is asked by the company to work, he or she can make use of leave for family reasons. 

No, not for the self-employed person. But the employees he employs are eligible.

In the context of the recovery from the Covid-19 crisis, the Ministry of the Economy has set up a number of financial aids for small businesses and self-employed persons. 

Yes, if the employee participates in vocational training during short-time working, the compensation allowance will be at least 90% of the salary normally received.

N.B.: Since participation in continuing training measures was not possible during the health crisis, an increase in the compensation rate to 90% did not exist under the short-time working scheme in case of force majeure due to the corona crisis (18 March - 30 June 2020).

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.

However, the hours of short-time working used during the period from 1 January 2020 to 31 July 2020 shall not be counted against the reduction in the maximum working time of 1,022 hours per calendar year per full-time employee.

For employees working part-time the 1,022 hours are pro-rated.

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.

No. As this employee is not affiliated as an employee to the Luxembourg social security system, he does not meet the conditions for benefiting from short-time working.

The short-time working scheme due to structural economic problems can be applied to all employees whose place of work is located in Luxembourg, whether they are on permanent or fixed-term contracts. Short-time working is not applicable to apprentices, trainees, temporary workers or employees on notice of dismissal.

Employees who have been dismissed before the occurrence of short-time working and whose notice period falls during the period of short-time working are not entitled to short-time working. Thus, the employer must continue to pay 100% of the salary and will not be reimbursed by the State.

Dismissal during the period of short-time working is only possible for personal reasons. In this case, the employee in question is no longer eligible for short-time working. The employer must continue to pay 100% of the salary and will not be reimbursed.

Please note: Employees who receive an old-age pension, an early old-age pension or a disability pension are not eligible for short-time working.

Attention: During the period of partial closure, a business eligible for the "partial lockdown" short-time working scheme has the possibility of placing all of its employees and apprentices on short-time work. 

During the period of short-time working, the State shall pay the compensation indemnity of 80% of the wages. Reimbursement is limited to 250% of the social minimum wage for unskilled workers aged 18 or over.

From July 2020: In the event of employee participation in a training measure organised by the employer or the State, the rate is increased to 90%. This rate is applied for each actual hour of training if the number of hours of training is less than 16 hours per month. If the number exceeds 16 hours per month, the rate applies for the entire month. 

Between 18 March 2020 and 31 December 2020, this compensation indemnity cannot be less than the amount of the minimum social minimum wage for unskilled workers. Any difference between the amount of the compensation indemnity and the minimum social minimum wage for unskilled workers will be borne by the Employment Fund.

The time limits for applying for short-time working related to the economic recovery are as follows:

• applications for August 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).

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

Attention: The submission deadline for applications regarding the "partial lockdown" short-time working scheme for the month of December 2020 and January 2021 is 30 December 2020 inclusive.

Applications submitted after the submission deadline will not be accepted. 

CIEs, CAEs and CREs are not eligible for short-time working.

Exceptionally, during short-time working in the event of force majeure in relation with the coronavirus (18 March - 30 June 2020), the Fonds pour l'Emploi took over the employers' contributions in the framework CRE, CIE and CAE contracts..

Only companies that are legally established in Luxembourg can benefit from short-time working. These companies therefore require a physical address in Luxembourg. The short-time working allowance is reimbursed only for employees who

• are legally employed with a company legally established on the territory of the Grand Duchy of Luxembourg;
• are normally employed at a place of work situated in the territory of the Grand Duchy of Luxembourg;
• are insured as employees with Luxembourg’ s social security (CCSS).

The Law of 2 September 2011 (Art. 5) regulating access to the professions in the crafts, trade and indstury secotr as well as to certain liberal professions, defines the criteria for establishment in Luxembourg.

Many companies think that employees on parental leave cannot benefit from short-time working at all. However, this is only the case for those who are on full-time parental leave. Employees who are on part-time parental leave or split parental leave can benefit from short-time workinig for the working hours normally worked.

If a public holiday 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.

After the end of the month in which short-time working occurs, businesses must complete an online procedure on MyGuichet.lu so that ADEM can draw up a statement.

The declarant also has the possibility of downloading an XML list 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.

During the state of crisis, the employer has a period of 3 months following the month of the occurrence of short-time working. For example, for the application for short-time working in March 2020, the employer must have submitted his statement by 30 June 2020 at the latest.

From July 2020, the employer has a period of 2 months to submit the statement. After this period, he is no longer entitled to compensation.  Example: For the application for short-time working t in July 2020, the employer must submit the statement by 30 September 2020 at the latest.

The statement must be entered on MyGuichet.lu. This is a process with strong authentication requiring a Luxtrust card, a token or an eID. The procedure can also be carried out by a company representative (e.g. a trustee).

The statement for a given month can only be made after having received an email or letter sent by ADEM to the employer and, if necessary, to his representative. It contains the reference number of the file related to the request for partial unemployment "CHP2020XXXXXXXXXXXX". 

In order for ADEM to receive the statement, it is mandatory that in MyGuichet.lu, the employer correctly indicates the company's identification number in the employer's signage and the file reference number. 

When the employee is unable to sign his payslip at his workplace because he is absent for illness or leave, a photo or a scan of the duly signed payslip will be accepted by ADEM.

If the employee cannot sign because he has left the company, a signature of the staff delegation on the payslip of the absent employee will be accepted on condition that it mentions "The employee has been dismissed" or "The employee resigned ”.

In the absence of a staff delegation, the employer can sign the payslip, indicating the relevant mentions above.

The declaration of apprentices is similar to the one of employees. 
The employer has to declare the salary to the Social Insurance Center (Centre Commun de la Sécurité Sociale). Only these data are taken into account.

Companies receive by post a statement specifying the positive or negative balance resulting from the balance between the advances received and the short-time working subsidies actually due for the months of March to June 2020. As the compensation mechanism will only be in place from mid-October, companies that have or will have repaid the overpayment made in March and April will receive the full July short-time working allowance from ADEM, provided that they have been granted short-time working for the month of July by the Comité de conjoncture and that they have introduced a statement on MyGuichet. Companies that have repaid the overpayments made in May and June will receive the short-time working allowance for August under the same conditions as for July.

The compensation will be implemented from mid-October 2020. From this date, if the company has not yet reimbursed the overpayment and has received the agreement of the Comité de conjoncture for the granting of short-time working for July, the overpayment from March to June will be offset against the amount of short-time working compensation due for the month of July. If the amount of the claim is not absorbed by the amount of the subsidies for July, the balance is carried over to August. This compensation mechanism will last until the amount of the claim is less than the amount of subsidies due to the company.

Advances overpaid from March to June must be repaid in full from the first month in which the employer has not applied for short-time working to the Comité de conjoncture since the compensation mechanism cannot be used. If, for example, the company has not applied for short-time working for the month of July, it must reimburse the overpayment within one month of receipt of the statement. If the company is entitled to short-time working in July, but not in August, the amount of the claim will be offset against the subsidy due for the month of July, and if there is a negative balance after offsetting, the employer will be obliged to reimburse the balance within one month of receiving the statement by registered letter. 

This also applies to companies which, even with the agreement of the economic committee, have not submitted a statement to MyGuichet within the prescribed time limit (2 months after the month in which the short-time working occurs).

In short, as soon as the company no longer has any employees on short-time working, it must pay the balance of the claim(s) from the previous month, as no compensation is possible.  

For companies that continue to have employees on short-time working in July and have not yet reimbursed the overpayment from March to June 2020, ADEM will trigger the compensation mechanism from mid-October. The overpayment will be compensated, up to the respective share, with the short-time working benefits due for the month of July. The companies will receive a new statement informing them of the positive balance (balance still due to be transferred by ADEM to the company) or the negative balance (balance of the overpayment). The latter amount is carried over to August, provided that partial unemployment has been granted by the Comité de conjoncture for the month of August.

For each monthly statement entered on MyGuichet or at the latest on expiry of the deadline for entering the statement for the month of unemployment in question, the company receives a new statement by registered mail informing it of the new balance to be paid or received.

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.

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

Only the names and social security numbers (matricules) of the employees and apprentices affected by short-time working will be requested from the employer.

In order to calculate the amount to be paid by the State, ADEM will base itself on the declarations made to the Joint Social Security Centre (Centre Commun de la Sécurité Sociale - CCSS) relating to the hours on short-time working and the amount paid during short-time working. 

If your company has not made the declaration of the hours spent on short-time working and the amount of short-time working allowances, the statement cannot be processed and the advance paid by ADEM must be reimbursed in full. 

To avoid this situation, you must make or, if necessary, rectify the declaration to the Joint Social Security Centre (CCSS) as soon as possible and, in any case, before proceeding with this statement. More information is available on the CCSS website: https://ccss.public.lu/fr/actualites/2020/05/14.html

In any case, you must submit a statement by answering negatively to the question: "Have you had employees affected by short-time working?"

Each monthly statement will be processed separately. The employer will be informed by ADEM :

• either of the outstanding balance, in case the compensation payment is higher than the advance received;
• or of the amount overpaid to be returned if the advance was greater than the compensation paid by the State.

The employer will receive a detailed statement for each month concerned.

No, any outstanding balance will be paid to the bank account used for the advance payment.

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).

During the state of crisis, the individual forms, the declaration of claim and the statement of amounts payable by the State are no longer required. If necessary, a statement signed by the staff delegation certifying that the delegation has read the statement and the list of employees affected by short-time working should be attached to the statement.

From July 2020, the declaration of the staff delegation will be replaced by an individual monthly statement to be signed by each employee on short-time working. This document can be downloaded from the statement form on MyGuichet.

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.

No, apprentices are only allowed to return to work when their schooling resumes. Apprentices on construction sites are therefore not required to return to work on Monday 20.04. However, they remain eligible for short-time working during the period in which they are not allowed to work.

No, a company that has had its application for short-time working accepted for the month of April is entitled to short-time working for the whole month provided that there is a valid reason (e.g. lack of materials, no guarantee of safety) for not being able to return to work after the official reopening of the construction sites.

However, the employer must notify the Comité de conjoncture of the days on which the employees worked via the online monthly statement form.