Luxembourg's Ministry of the Economy has confirmed that the short-time working measure introduced in the context of the COVID-19 pandemic will not be renewed after 30 June 2021.
The Economic Committee met on Thursday 20 May 2021 under the co-chairmanship of the Minister of Labour, Employment and the Social and Solidarity Economy, Dan Kersch, and the Minister of the Economy, Franz Fayot.
The Committee recalled that construction companies which have been temporarily impacted by the pandemic (i.e. shortage of raw materials) may benefit from short-time working for the second half of May and for the month of June 2021. However, this measure will not be extended beyond this period.
The Luxembourg government introduced short-time working in March 2020 with the aim of helping companies to maintain employment during the pandemic; this measure will expire on 30 June 2021.
From 1 July 2021, access to short-time working will be defined according to the legal provisions provided for in the Labour Code. In other words, access to this measure may, where appropriate, be cyclical or structural, for cases of force majeure or for economic dependence.
The Economic Committee confirmed that a total of 3,709 companies (compared to 4,061 in April) applied this month for short-time working for the month of June 2021. The Committee approved 3,676 such requests (compared to 4,029 last month), although the Government Council will have the final say on the allocation of this support measure. Approved requests for the month of June concern 27,030 full-time employees (compared to 31,342 employees the previous month).
The Economic Committee also analysed the economic, financial and social situation of 21 companies wishing to implement a job retention plan or a recovery plan. One sectoral job retention plan received approval.
Furthermore, the Economic Committee approved four requests for tax exemption from voluntary termination indemnities, concerning 141 people.
