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-2021-1/1662 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 01 January 2021 – 30 June 2022|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Author||Adrien Thomas (LISER)|
|Measure added||06 January 2021 (updated 01 June 2022)|
Given the need to limit social and economic activities due to the continued spread of COVID-19, the Conjuncture Committee, bringing together the Minister of Employment and the Minister of Economy, trade unions and employer organizations, decided on 19 November 2020 a number of changes to the partial unemployment regime.
The terms of application of partial unemployment for the first six months of 2021 are defined in two distinct periods of 3 months on the assumption that the health situation improves by 1 April 2021. As concerns the rules applicable between 1 January 2021 and 31 March 2021, there are four different cases:
Figures to remember:- More than 150,000 people were affected by short-time work;- Nearly 1,300 companies have not paid back short-time work;- More than 3,000 claims paid in December 2020, more than 800 are still pending;- 4,450 companies in February 2021 (compared to 4,393 in January 2021) have applied for short-time work in order to benefit for the month of March 2021, from the special short-time work provisions that are in effect until 30 June 2021.
Between July 2020 and June 2021 49,300 companies introduced applications for partial unemployment and 47,296 applications have been granted by the "Comité de conjoncture".
Employees in standard employment
||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
According to the press statement by the Ministry of Employment and the Ministry of Economy, social partners adopted in "a broad consensus" the adopted new measures on partial employment, which were adopted in the tripartite Conjoncture Comitee.
Social partners are supportive of the adopted measures. Representatives of the umbrella employers' organization Union of Luxembourg Enterprises (UEL, Union des Entreprises Luxembourgeoises) have, however, suggested that partial unemployment should be extended over time and made more accessible to all sectors, without raising barriers to small businesses.
Eurofound (2021), New dispositions on partial unemployment , measure LU-2021-1/1662 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2021-1_1662.html
30 January 2023
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