Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2020-25/1657 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 20 June 2020 – 30 November 2020|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Measure added||05 January 2021 (updated 31 January 2022)|
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.
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.
The following updates to this measure have been made after it came into effect.
|30 November 2021||
This aid has been extended for the months of November to December 2021 inclusive. Eligible companies have the choice to apply for : 1) this aid for uncovered costs; or 2) aid as part of the new stimulus package
Until 1 March 2021, 5,978 non refundable eligible applications have been processed and €48,596,108 were transferred.
Until 22 September 2021, 10,556 non refundable eligible applications have been processed and €83,883,669 were transferred.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners are not involved.
No information available.
This case is sector-specific (only private sector)
|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.
Eurofound (2021), Recovery and solidarity fund for businesses, measure LU-2020-25/1657 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2020-25_1657.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.