Coronavirus: Clarifications about the short-time working system as of April 2021

Back
Date:
03 Mar 2021

Newsflash

By:
Eloïse Hullar

1.    New clarifications about how the short-time working system will be applied for the period between 1 April 2021 and 30 June 2021

In a press release issued on 2 March 2021, the Ministry for Labour, Employment and the Social and Solidarity Economy and the Ministry of the Economy offer some clarifications about how the short-time working system will be applied, following on from the last press release, published on 23 February 2021 (see our Newsflash of 25 February 2021):

  1. Industrial businesses will carry on benefiting from short-time working, undertaking not to make any employees redundant for economic reasons.
  2. Businesses in sectors relating to Horeca, tourism and events will carry on benefiting from short-time working, in accordance with the following conditions:
  • for April 2021: the decision has been made to extend the short-time working system for one additional month at 100%, in other words, without setting a limit on the total number of hours not worked;
  • for May and June 2021: these businesses will carry on benefiting from short-time working for up to 50% of the total working hours lost, and as long as there are no redundancies for economic reasons.

It is worth pointing out that businesses in the sectors mentioned above that are forced to close due to an administrative decision will benefit from unlimited short-time working during the closure, and will be able to make up to 25% of their staff redundant for economic reasons.

  1. Businesses affected by the health crisis, others than industrial companies and those in sectors relating to Horeca, tourism and events, will continue to be able to benefit from short-time working, in accordance with the following conditions:
  • for April 2021: up to 15% of the number of working hours lost, and as long as there are no redundancies for economic reasons;
  • for May and June 2021: up to 10% of the number of working hours lost, and as long as there are no redundancies for economic reasons.

Normal working hours cannot exceed 40 hours per week per employee.

  1. Regardless of which sector they are in, companies that still need to make employees redundant or for whom the working hours lost exceed the percentages stipulated in points 2 or 3 above will need to present a recovery plan (for small companies with fewer than 15 employees) or a job retention plan (for companies with more than 15 employees), or even a “plan de maintien dans l’emploi sectoriel” (sector-specific job retention plan) if applicable.

2.    Deadline for submitting short-time working applications for April

Short-time working applications for April 2021 can be submitted between 1 March 2021 and 12 March 2021 via the online platform MyGuichet.lu.