More than 4 million to help cultural sector in Luxembourg

To deal with the crisis caused by the Covid-19 pandemic, the Ministry of Culture has drawn up a recovery plan for the cultural sector. More than four million will be allocated to revive the different cultural sectors affected by the crisis.

The Covid-19 crisis did not spare the cultural community. Although the sector has played an important role in many homes during confinement and has helped many people overcome this difficult milestone by reading, watching movies or participating in digital initiatives, cultural and artistic institutions. Today the sector is in a precarious, even difficult situation.

That is why the Ministry of Culture proposes a new recovery plan for the sector that complements the exceptional aid already allocated so far. Details were released Wednesday.

 

An inventory without glory

In total, more than a hundred closed exhibitions, more than a thousand concerts, festivals and other events canceled or postponed, and more than a million spectators who had to give up their ticket.

We are going through a difficult period, with long-term consequences“, said Sam Tanson (Déi Gréng), Minister of Culture. “The financial impact is also very significant and the cultural infrastructures show a loss of 15 to 30% of their income, which is related to the sale of tickets or restoration. This loss may jeopardize the incomes of independent and intermittent artists of the show. In addition, the Ministry of Culture intervened from the beginning to support the sector, first by granting subsidies to projects that could be carried out in times of crisis, then by amending the law on social measures for intermittent entertainment workers and professional artists to support creatives better in times of crisis”.

Because we must not forget that culture is a real economic sector that employs more than 12,000 people, which represents 5.3% of jobs in Luxembourg. A sector that counts in the general economic balance, but which is also precarious, because a fifth of these jobs are self-employed and, therefore, are in a situation of great economic fragility. On May 20th, it was decided that these grants would last until June 30th, thus increasing the allocation reserved for artists and intermittent workers to 1.2 million in 2020.

From May 11th, libraries and museums can reopen, and from May 29th, rooms such as theaters, cinemas, cultural centers and concert halls can be opened.

However, these places must respect the general sanitary conditions, which does not stop raising many concerns: the use of compulsory masks in the places of circulation, sitting respecting the physical distance, distance also imposed for the speakers on stage, etc.

Every three weeks, the situation will be re-evaluated, but at this time we still do not know when we can resume activities as we know them“, said the Minister of Culture. That is why the Ministry of Culture is providing a new set of funds to mitigate the effects of the crisis, prevent excessive precariousness of cultural workers, absorb collateral damage in neighboring sectors and allow structures to adapt to new measures to attract your audience again.

 

New help for better support

It is in this context that the agreed structures and associations may submit a claim for compensation to compensate for a financial loss related to the cancellation or postponement of an event, or the closure of the cultural institution. 1.5 million is reserved for these allocations.

The annexes of Bourglinster Castle already housed an artist residency program. This will be reinforced with a three-year mission for a group of artists financed up to € 100,000 for two years and who will be in charge of the management and animation of the place. The principle of residency will also be valued in cultural institutions that can host an artist for at least 6 months. To do this, they will benefit from aid ranging from € 15,000 to € 30,000, for a total of € 150,000 reserved for this action.

The ministry is also increasing its endowment for the acquisition of works of art by € 150,000 that can be used to buy works from galleries.

Regarding music, € 50,000 is reserved for eight new musicals. The theater will benefit from € 100,000 that will be used to write dramatic works that must later be produced on stage. The same amount is allocated to the search for new forms of entertainment that better satisfy the limitations of the sanitary conditions imposed by the Covid-19.

Finally, two very large budgets, each one million euros, are aimed, on the one hand, at supporting regional museums for the development and improvement of their offer, and on the other hand at cultural sites with a tourist vocation. Behind these last two grants, there is a sincere desire to develop these structures that are still underexploited and to enrich not only the cultural offer, but also to strengthen tourist attraction throughout the country. Enough to contribute to the long-term “Vakanz Doheem”.

 

Source: Paperjam.lu

A recovery plan and a “new beginning” for the country

Finance Minister Pierre Gramegna (DP), accompanied by Deputy Prime Ministers François Bausch (Déi Gréng) and Dan Kersch (LSAP), detailed the new aid measures decided by the government on Wednesday May 20th. Again a very ambitious program.

A new stage has been passed and that requires a change of scenery. The one in the press conference room of the European Convention Center in Luxembourg, featuring a map of Luxembourg and, above all, a slogan: “Neistart Lëtzebuerg” (a new beginning for Luxembourg). With three even more marked priorities: quality of life, solidarity and stability.

 

Lack of growth requires action

Thanks to the good figures of the health authorities, a new beginning starts after a hard phase of confinement, which severely put the homes and businesses of the country to the test. On Wednesday May 20th the Government Council decided new subsidy, which Prime Minister Xavier Bettel had already announced to a large extent. And that complements the other measures taken in recent weeks. Finance Minister Pierre Gramegna (DP), accompanied by Deputy Prime Ministers Dan Kersch (LSAP) and François Bausch (Déi Gréng), gave the details.

Firstly, he recalled through a macroeconomic analysis that, in the context of the recovery, “Luxembourg is better placed than the others. Especially since their public finances are healthy. We have more room for maneuver.”. The financial center, which “represents 30% of the country’s wealth”, remained active.

This also offers a significant attack force: this new subsidy, estimated at between 700 and 800 million euros, combined with the previous ones, represents 5.5% of the national GDP, or 3,000 million euros. Belgium and France only made an effort at 2% and Germany at 4.6%. “We will not have growth for two years, so we must act“, insists Pierre Gramegna. This is strengthening the liquidity of households and the economy.

A call was also made for everyone to play the game: individuals  to pay their bills, business, VAT or other taxes, for example, “to create a virtuous circle“.

 

Recovery fund and flat-rate aid

While the Minister of Tourism Lex Delles (DP) will detail the subsidy dedicated to this sector on Friday, the Minister of Finance returned for the first time to the recovery and solidarity fund for companies. It will be aimed at the most affected companies (in the restaurant, tourism, fitness, events, etc. sector) that have not yet been authorized to reopen on May 20th. They will have to demonstrate a loss of turnover of at least 25% in June 2020 compared to June 2019. The aid will be 1,250 euros per employed employee, 250 euros per temporarily unemployed employee, with maximum limits: Maximum 10,000 euros per month for companies with less than 10 employees, € 50,000 per month for companies with less than 50 employees and € 100,000 per month for companies with more than 50 employees. This assistance will be available from July 1st for a period of six months.

Other lump-sum aid will be awarded to retail and personal care companies: € 1,000 per employee in June, € 750 in July and € 500 in August, up to a limit of € 50,000 per month. This measure is limited to SMEs.

As previously announced, a tax exemption of double the reduction granted to a tenant in commercial leases, up to a maximum of 15,000 euros, will be possible. Rent increases on private leases will be frozen until the end of the year.

On Friday, the Minister of Economy Franz Fayot (LSAP) will give details “on other measures“, said Pierre Gramegna: special help to increase the energy efficiency of companies, expansion of the reimbursable advances provided for in the stabilization pact of May 15th to September 15th and aid for investments in the field of digitization. Certain grants can go up to 800,000 euros. Also supporting lawyers and apprentices with a 10% revaluation of legal aid fees, doubling the cost of living subsidy, the sustainability of the family support license, etc.

The good use of partial unemployment has helped maintain social cohesion“. said Dan Kersch, Deputy Prime Minister and Minister of Labor.

For the Minister of Labor, Dan Kersch, the correct use of partial unemployment has avoided a disaster. “In the United States, like us, they had 5% unemployment. Now we believe they will reach 25%”, he said.

The measure has cost 725 million, 32,000 requests have been made, and 325,000 wages have been paid through it. “Partial or temporary unemployment has been the instrument to maintain social cohesion“, says Dan Kersch. 

 

Partial unemployment maintained until the end of 2020

The partial unemployment measures will continue until the end of the year and the advance system will continue. Short-term conjunctural unemployment due to Covid-19 will evolve towards structural partial unemployment, which will be simplified, because “nobody can pretend that companies do not face changes“.

The plan proposes guaranteeing access to simplified structural partial unemployment to companies affected by the pandemic crisis and that have benefited from partial unemployment due to “force majeure due to Covid-19“, starting in July. Therefore, it follows that companies must present a recovery plan, or even a job retention plan, authorizing layoffs in the structural system of partial unemployment, but that should be avoided as much as possible. Keep in mind that companies will benefit from a simplified, even ultra simplified, digital procedure. This will allow them to reorganize to gradually adapt to the post-Covid-19 situation.

Finally, the economic recovery will also require an ambitious state. “We are not going to reduce public spending, it would be a very bad idea. On the contrary, they will increase 6.3% in 2021. No other country is doing this in Europe”, says François Bausch.

 

Measures aimed at sustainability

Convinced that, more than ever, it is necessary to go in the direction of sustainability, Minister Déi Gréng detailed a list of ecological measures:

  • The Prime House for energy modernization of buildings increased by 50% for contracts signed from March 20th to March 21st, 2021, work can be done until the end of 2022.
  • An “25% increase in the subsidy” if you replace your heating with a renewable energy based system.
  • A 25% bonus for replacing the boiler.
  • Aid for photovoltaic installations above 30kW will now be accessible to everyone.
  • A subsidy program for private electric charging stations is being developed, complementary to the Chargy Network, aimed at users who want to charge their vehicle at home.
  • A network of fast charging stations will be developed.

These are measures that will be beneficial for the construction sector” at the same time as for the planet.

These ambitious measures are “essential” for the government. Of course, it can be reviewed in the event of a resumption of the epidemic. A working group is studying this situation that nobody wants. Because, as François Bausch pointed out when looking at Pierre Gramegna, “we cannot allow a confinement every three months“.

 

Source: Paperjam.lu

Luxembourg rolls out another €800m as part of virus recovery plan

New measures include aid for businesses and hotel vouchers to boost tourism industry.

Luxembourg will roll out between €700 and €800 million in fresh aid to help companies as part of the country’s economic recovery plan after businesses have suffered from a nation-wide lockdown put in place two months ago to contain the spread of the coronavirus.

The newly announced package includes aid to make up for financial losses, vouchers to spend at hotels to boost the tourism industry, and a stop on rent increases.

Today, we can’t say we have won the fight against the virus“, prime minister Xavier Bettel said during a press conference on Wednesday. “But we have reduced the effects of the virus. We have opted for the right strategy, I’m certain we took the right decision“.

Bettel put the country into lockdown on 16 March, closing shops apart from those selling food, and all restaurants and hotels. While most shops have now opened their doors again, restaurants, bars and hotels are mstill waiting for a further easing of the lockdown.

A new multi-million-euro plan – which comes on top of a rescue package that had already expected to reach a budget of €10.5 billion – aims to maintain jobs and keep companies in business despite the lack of revenue and a reduced need for staff over the past months.

Companies which have been heavily hit will receive €1,250 per month. People receiving cost-of-living allowance will get twice the amount for the rest of the year, while residents and cross-border workers will receive a voucher to spend a night at a hotel in Luxembourg to boost tourism. Landlords will not be able to increase rents until the end of this year.

The health crisis has meant fewer people already unemployed were able to find jobs last month. Unemployment agency ADEM said the high number of unemployed people in April was mainly due to fewer people finding jobs rather than more people signing up for unemployment benefits.

A total of 1,796 new people registered – 18% fewer than in April last year. But only 884 people ended their benefits after finding a new job last month, compared with 2,512 in April 2019. There were 1,895 vacancies last month, 43% less than in the same month of last year.

More measures to lift the lockdown could come out next week, Bettel said. He had previously said restaurants could reopen on 1 June if the spread of the disease remained in check, but he repeated the date is still uncertain.

Foreign affairs minister Jean Asselborn has been in talks with France and Belgium to see when the borders will fully reopen“, Bettel said. No date has been agreed but Luxembourg had hopes Belgium would open before France, which will remain fully closed until 15 June.

Looking back, this crisis has shown us to what point it’s difficult to take measures without knowing if they are right or not. We had to act quickly. Figures show us we have avoided a big catastrophe“, Health Minister Paulette Lenert, who was with Bettel, said at the press conference.

We had one aim: pull the hand break. Now our aim is to reintroduce normalcy by gradually reducing these measures“.

 

Source: Luxtimes.lu

Luxembourg City waives three months rent

Faced with the economic difficulties faced by merchants and hoteliers, Luxembourg City has decided to postpone the resumption of rent collection until June 1st, Serge Wilmes (CSV) announced.

The first councilor confirmed that the city renounces not only the income collected during the period of confinement, but also the resumption of activities, at least for companies. Restaurants are currently closed across the country, but some offer a takeaway or home delivery service.

In total, “the income that the City of Luxembourg renounces, to help companies and hoteliers, amounts to about 80,000 euros per month“, indicates the first councilman in charge of trade, that is, a total of 240,000 euros for the period of March to June 2020.

Serge Wilmes clarified that the resumption of rent collection only concerns tenants who can reopen their doors. Therefore, hoteliers can still breathe a little.

 

Source: Paperjam.lu

Beginning of deconfinement in Luxembourg: Shops reopened and social contact restart on May 11th

The Prime Minister and the Minister of Health announced on Monday the end of the containment and the resumption of several activities on May 11th. Shops will be able to reopen, and social contacts will restart on a limited basis by continuing to respect the safety measures.

It’s a return to normality“, but not a return to the way things were before. By announcing the end of the containment or “Bleift Doheem” at a press conference late Monday afternoon, Xavier Bettel (DP) and Paulette Lenert (LSAP) were intransigent on the respect of the measures to contain the spread of the virus: barrier gestures and social distancing. Discipline must be combined with solidarity.

Four more people were tested positive compared to Sunday, bringing the number of people affected by Covid-19 to 3,828. There were no additional deaths reported. 113 people are hospitalized, 21 of them in intensive care.
Considering the positive results over the last few days and the systematic monitoring of health facilities, the Government decided to start a new phase on May 11th:

  • Shops can reopen. A precise list of authorized businesses will be released in the coming hours. With a ministerial announcement to come, the modalities of attendance will be adapted this Wednesday.
  • The personal care sector, such as hairdressers and beauticians, will be able to return to work only by appointment.
  • It will be possible to regain some form of social contact with up to six people (exceptions may apply to people living under the same roof) with the necessary discipline to limit the risk of spreading the virus. “The aim is to resume limited social contact with others, paying attention to the multiplier factor“, specifies Xavier Bettel. “And if it’s the same six people (each time), so much the better“. It’s not yet time for a barbecue or a party at home, says the Prime Minister, as if to better illustrate the idea of moderation that prevails, including in the denunciations that the authorities want to avoid.
  • Gatherings and other outdoor events will be allowed, limited to 20 people.
  • Cultural venues will be able to welcome the public again, avoiding queues and preserving distance and barrier gestures. Outdoor events that allow this, such as drive-in cinema, will also be possible.
  • Outdoor sports will be allowed again, except team and contact sports. The changing rooms will remain closed.
  • Indoor leisure areas, such as fitness rooms, casinos, discos or nightclubs, will remain closed.
  • The same applies to the sector of tourism and services – forced to survive via delivery for restaurants – for which additional accompanying measures are being discussed. Pastry tasting salons are also affected. If the evolution of Covid-19 continues to unfold positively, the Prime Minister has indicated that bars and restaurants will once again serve meals on their premises on June 1st, subject to adjustments.

Discussions are ongoing within the government to adjust the specific measures that have been implemented to support the economy.

The same discussions will have to continue with neighboring countries concerning teleworking and the tolerance threshold allowed for cross-border workers. Xavier Bettel clarified that telework remains a good measure of social distancing and would continue to be favored in the coming weeks.

 

50 masks per inhabitant and cross-border

The Government, which has been busy with working groups modelling the evolution of the pandemic according to deconfinement scenarios, has not recorded a significant increase in infections following the reopening of construction sites on April 20th.

Xavier Bettel said he wanted to take the time to conduct the necessary analyses and exchange views with the specialists before taking the decisions announced on Monday. Concerned representatives of the economic sectors were waiting for these measures.

The masks, which have become indispensable elements in daily protection against Covid-19, will remind everyone that ” the virus is now part of our daily life“, and “we must learn to live with it“.

The Prime Minister has announced that a new massive distribution of masks will take place in the coming days. Each person over the age of 16 will receive 50 masks.

The same applies to cross-border workers“, adds Xavier Bettel. “Discussions are ongoing to determine how the distribution can be done, so that people who work in that sector have the same opportunity to protect themselves“.

Paulette Lenert remarked that if the strict measures, the personnel mobilized and the infrastructures deployed did not ensure  a minor impact of the pandemic, the possibility that containment will tighten again remains if the virus resurges.

As Xavier Bettel said on 20th March: Everyone remains part of the solution.

 

Source: Paperjam.lu

 

Financial support measures for small businesses in Luxembourg

Micro and small commercial and artisanal companies will be able to benefit from additional financial support measures after the adoption last Wednesday of the regulation of the Governing Council of the Grand Duchy.

Companies with between 10 and 20 workers may benefit from a compensation that amounts to a lump sum of 12,500 euros.

In addition, companies with fewer than 10 workers will also benefit from new measures. An additional compensation of 5,000 euros will be awarded to those who, forced to close or stop their activities, suffered a loss of at least 50% of their turnover during the period between April 15th and May 15th.

“We are strengthening immediate financial support for micro and small businesses because they are generally the most vulnerable to unpredictable events like Covid-19. Effective and prompt support is essential in times of crisis,” said the Minister for the Middle Classes, Lex Delles.

Detailed information is available since April 24th on the Guichet.lu website. The form to send applications, which will be processed by the General Directorate of the Middle Classes, is also available on that same website.

 

Source: Paperjam.lu

Extension of the measures taken by the National Security Council in Luxembourg due to Covid-19

On 15th April 2020, the Government Council fixed the guidelines for a deconfinement strategy balanced between public health imperatives and the psycho-social and economic aspects of the current confinement.

As a reminder, the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 introduced restrictions or even prohibitions on commerce and artisanal activitiesincluding the closure of construction sites, to contain the spread of the coronavirus. Beyond these regulatory prohibitions, educational activities and the activity of the recycling centres have been suspended.

In the Grand Duchy, the rate of new infections shows a downward trend and thus reflects the effect sought by the confinement measures put in place on 16th March 2020. However, the government has decided to proceed only with a cautious lifting of the confinement measures.

Thus, the deconfinement strategy consists of:

  • Protecting in particular vulnerable groups.
  • Implementing a gradual exit from confinement in phases sufficiently separated from each other.
  • Ensuring, at all times, sufficient hospital capacities in normal and intensive care to be able to handle serious cases in health care institutions.
  • Making the population aware of its responsibilities and to reduce as far as possible the risk of uncontrolled spread by maintaining, or even strengthening, the barrier measures to be observed in any place where people congregate.
  • Implementing preventive measures at work.
  • Ensuring the isolation and close follow-up of new cases of infection.
  • Developing testing capacities and support research in particular with regard to serological tests to measure the acquired immunity of the population.

The resumption of activities can therefore only take place in successive phases that are well thought out in terms of impact. The decision to launch a phase is taken by the Government on the recommendation of the Prime Minister and the Minister of Health, and it is based on close monitoring of the evolution of the number of newly infected people in the population and an estimate of available hospital capacity in the short and medium term.

It is also clear that the Prime Minister and the Minister of Health may submit to the Government Council at any time a proposal to reintroduce stricter confinement measures when, on the basis of the monitoring of the evolution of the situation, it appears that hospital capacities are likely to reach a critical level which could jeopardise the proper care of patients.

It is important to note that any resumption of activities will be accompanied by very strict barrier gestures and complemented by the mandatory wearing of a mask or any other device that covers the nose and mouth for interpersonal contact situations if the safety distance of 2 metres cannot be guaranteed.

 

Deconfinement strategy in phases:

Phase 1 – Reopening of construction sites (tentative date 20th April 2020).

The first phase thus covers the following activities:

  • Reopening of construction sites.
  • Educational aid and assistance activities (Services in child and family aid, Competence centres in special psycho-pedagogical care and measures to benefit children who are on the verge of dropping out of school).
  • Activities of gardeners and landscapers.
  • Businesses whose main activity is do-it-yourself.
  • Reopening of recycling centres.

This list will be completed on 4th May by the resumption of senior classes, as well as internships and practical work at BTS and university level.

Phase 2 – resumption of secondary education (tentative date 11th May 2020).

Phase 3 – resumption of fundamental education as well as the reopening of crèches and childcare facilities (tentative date 25th May 2020).

This will be followed, in later phases, by the resumption of commercial activities and the reopening of the HORECA sector. At this stage, however, it is premature to give a detailed assessment of the lifting of restrictions in this sector. A final decision will be taken in due course by the Government Council on the basis of an analysis of the situation.

Companies, businesses and administrations are generally encouraged to continue to promote teleworking throughout the transition period out of confinement.

Gatherings will remain prohibited until 31st July, except for funerals and civil weddings, which will be allowed for a maximum of 20 people and provided that an interpersonal distance of 2 metres is respected. The prohibitions laid down in Article 2 of the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 will be maintained.

The confinement measures currently in place for vulnerable persons and persons over 65 years of age will continue to be in force at least until the end of the first phase. The gradual lifting of the current restrictions also entails the need to develop, in consultation with the Ministry of Family Affairs, Integration and the Greater Region a strategy for the protection of vulnerable persons in care centres and persons over 65 years of age.

Workers belonging to the vulnerable category may consult their doctor to determine whether the severity of the illness prevents them from going to work. This assessment must be done on a case-by-case basis, taking into account the recommendations of the Health Directorate and the working environment of the person concerned.

 

Source: Gouvernement.lu

 

The Chamber of Commerce of Luxembourg informs that the distribution of protective masks to businesses, announced on Friday 17 April 2020, will take place on the following dates and according to the following procedures:

  • companies with 50 or more employees will receive the masks by direct distribution on Monday 20 or Tuesday 21 April. For these two days, companies are requested to organize a presence at their offices to receive the packages distributed by Post Luxembourg.
  • companies with fewer than 50 employees will receive a letter from the Joint Social Security Centre (CCSS) on Monday 20 or Tuesday 21 April informing them of the number of masks made available to them. The masks will be given to the companies after showing the original letter from the CCSS to a post office.

Each company will receive 5 protective masks per employee.

The provision of masks free of charge, organised jointly by the Government, the CCSS, Post Luxembourg and the Chamber of Commerce, will make it possible to equip some 60,000 companies in all sectors of activity (except the craft sector). Representing three quarters of the national workforce, these 60,000 companies will receive some 2 million masks.

Companies can contact the helpline (+352) 42 39 39 – 445 of the Chamber of Commerce or by e-mail at covid19@houseofentrepreneurship.lu for any questions. Further information on the aid measures can be found on the website www.cc.lu/covid19/.

 

Source: www.cc.lu

 

Update on support measures for employers

50% bank guarantee

A maximum amount of 250,000 euros from the Mutualité de Cautionnement.

 

Partial employment in case of force majeure

Advance payments based on the expected number of employees

Application through the MyGuichet.lu online tool

Applications by mail, email or fax will no longer be accepted

2 cases of application processing:

1) Mandatory closing: fast-track process or directly suitable

2) Open but with reduced activity: agreement of the Secretariat of the Committee on Trade Conditions of the Ministry of Economy

 

Fiscal measures

Requesting a delay on the payment and the cancellation of the VAT advance payments

Reimbursement of the credit balance < 10.000 EUR and administrative flexibility

Social security contributions: measures for temporary suspension of the CCSS

 

Aid scheme for companies in temporary financial difficulties

Capital subsidy in form of reimbursable advances of up to 500.000 euros

Application through the MyGuichet.lu online tool

Calculation basis: employee expenses and rental expenses

 

Emergency financial assistance for small businesses and self-employed workers

2 cases of application processing:

1) Mandatory closing

Immediate and non-refundable financial compensation of

Admission requirements and form

2) Open but with reduced activity

Immediate non-refundable financial subsidy of 2.500 euros

Admission requirements and form

 

In the context of the Covid-19 crisis, the Directorate General for the Middle Classes has established an emergency fund for very small enterprises (0-9 full time employees) and self-employed workers.

Thanks to this measure, enterprises with a maximum of 9 employees and self-employed workers who have a valid establishment permit issued before 18th March 2020 (with a minimum annual turnover of 15,000 euros and whose activity has been interrupted after the entry into force of the Grand Ducal regulation of 18th March 2020, which introduces a series of measures in the context of the fight against Covid-19) can submit an application for an immediate and non-refundable financial assistance of up to 5,000 euros.

The aim of this measure is to provide immediate financial support to the numerous very small businesses as well as to the self-employed workers who, although they constitute an essential part of our economic structure, are generally also the most vulnerable to contingencies such as the Covid-19 crisis.

In this regard, it is important to clarify that the granting of this aid is independent of the law proposal that will complement the existing aid instruments.

 

 

SOURCES: www.cc.lu , guichet.public.lu 

New procedure for granting short-time work in cases of force majeure linked to the Covid-19

THINGS YOU NEED TO KNOW

What is the short-time work?

Short-time working allows a company to avoid laying off its employees. The employees receive 80% of their salary from the company (this amount cannot be less than the minimum social wage or more than 250% of the minimum social wage). These amounts are fully covered by the Employment Fund.

Conditions that the company must complete

Eligible employees: permanent, fixed-term, apprenticeship, etc.

– be legally established in Luxembourg

– a significant go down on activities/income following the crisis

– undertake not to dismiss any employee for economic reasons

 

In order to maintain employment and, consequently, avoid redundancies, Luxembourg labour law provides that firms may, under certain conditions, have recourse to different short-time working schemes, depending on the nature of the difficulties encountered. This system enables firms to keep their trained employees in employment with skills that are essential to the smooth running of their activities.

The short-time working scheme is therefore one of the major instruments enabling enterprises to cope with the fall in economic activity due to the Covid-19 health crisis.

In view of the current exceptional situation and the repercussions on the life of companies and their employees, the conditions for applying for and obtaining short-time working have been adjusted.

In order to speed up and facilitate the procedure for applying for short-time working in cases of force majeure linked to the Covid-19 crisis, ADEM, in close collaboration with the Secretariat of the Economic Conditions Committee and the State Information Technology Centre (CTIE), has set up a new automated system that enables companies to submit their short-time working applications via an online form at: http://guichet.lu/cocp

This request will have to be made every month

Companies make their request using secure authentication (LuxTrust product (e.g. Token, Smartcard or Signing stick) or electronic identity card). They also have the possibility of having their application submitted by their authorised representative (a trustee), e.g. if they do not have a LuxTrust product. The data collected will be processed automatically by ADEM. The application has been designed to be as simple as possible for companies. As of today, companies must use the form available at the Counter to make their request (requests by mail, e-mail or fax will no longer be accepted).

Applications from companies that can no longer operate following the government decisions of March 2020 will be processed directly by ADEM. Applications from other companies will only be processed after the agreement of the Comité de conjoncture. In both cases and as soon as the request is accepted, ADEM will pay an advance to the companies. This advance corresponds to 80% of the salaries of the staff affected by short-time working and will enable the firms to obtain cash quickly. After the end of the month, the company will be required to submit a detailed statement showing the hours actually worked. On the basis of this statement, ADEM will calculate the sums actually owed by the Employment Fund. In the event of an overpayment, the company will be required to reimburse it.

Which companies are eligible for the new partial unemployment scheme linked to COVID-19?

Companies that can no longer carry out their activities following a government decision are automatically eligible for short-time working without the need for the agreement of the economic conditions committee.

All other companies that have to suffer a drop in activity due to the coronavirus crisis must receive the agreement of the economic development committee in order to be eligible for short-time work.

Temporary employment agencies are also eligible with regard to their employees whose assignment contract continues but who can no longer carry out their activity.

Both types of companies must apply using the same form at the counter.

Which employees are eligible for the new partial unemployment scheme linked to COVID-19?

  • Employees on permanent and fixed-term contracts (the contracts must be in force at the time of the occurrence of the force majeure event)
  • Apprentices in initial and adult learning.

What about companies that have already applied on the basis of the old form?

The applications received by the secretariat of the economic development committee by post, email or fax are being processed. Given the extremely large number of applications received, this processing could take until 3 April 2020.  Companies whose application was incomplete and therefore cannot be processed will be contacted by ADEM.

 

Link: http://guichet.lu/cocp

Source: ADEM

Attached files: 200327_DemandeDeChomagePartiel.pdf