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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case LU-2020-25/1657 – measures in Luxembourg

Recovery and solidarity fund for businesses

Fonds de relance et de solidarité pour entreprise

Country Luxembourg , applies nationwide
Time period Temporary, 20 June 2020 – 30 November 2020
Type Legislations or other statutory regulations
Category Employment protection and retention
– Income support for people in employment (e.g. short-time work)
Author Roland Maas
Case created 05 January 2021 (updated 09 July 2021)

Background information

The Luxembourg Government created a recovery and solidarity fund, which intended to encourage and maintain employment and support companies in sectors hard hit by the health crisis. Legal background: Law of 24 July 2020 aimed at setting up a recovery and solidarity fund and an aid scheme for certain companies (Loi du 24 juillet 2020 visant à mettre en place un fonds de relance et de solidarité et un régime d’aides en faveur de certaines entreprise), Mémorial A 64 24 July 2020.

Content of measure

Any company in the sectors of tourism, hotels, restaurants and cafés; culture; events as well as entertainment that suffered a loss of turnover during June to November 2020 of at least 25% compared to the same period in 2019 could introduce an application for a direct and non-refundable monthly aid. The amount of support has been calculated on the basis of the number of employees and self-employed workers in the company.

The company must have carried out its activity before 15 March 2020 and operate during the month for which aid is requested. Also, the company must have a valid establishment permit, had a turnover for the fiscal year 2019 at least equal to or greater than €15,000, not have dismissed, during the month for which aid is requested or during the months eligible for support, more than 25% of the employees for reasons not inherent to the person of the employee. For every wage-earner, an amount of €1,250 has been foreseen aid, while the amounts are limited to €10,000 for micro-companies, €50,000 for small companies, and €100,000 for medium and large companies.

Use of measure

Until 1 March 2021, 5,978 non refundable eligible applications have been processed and €48,596,108 were transferred.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

No information available.

Views and reactions

No information available.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      R - Arts, Entertainment And Recreation R93 Sports activities and amusement and recreation activities
      S - Other Service Activities S96 Other personal service activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2021), Recovery and solidarity fund for businesses, case LU-2020-25/1657 (measures in Luxembourg), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.