Luxembourg: agreement between government, trade unions and employers on new short-time working arrangements that will run until the end of 2020

On 09 June at a meeting with Luxembourg’s Ministers of the Employment and the Economy, the social partners (OGBL and LCGB trade unions and the UEL employers body) agreed on new arrangements for the granting of short-time working to companies affected by COVID-19 that run beyond the end of official end of the health crisis, scheduled for 24 June. The agreement revises the terms and conditions prevailing for the previous crisis arrangements by providing for simplified procedures and by adjusting employment termination prohibition requirements.
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The 10 June joint statement by the Ministries of Employment and the Economy indicates that the agreement, which was taken up by the government, provides that:

  • Industrial companies will continue to benefit from the short-time working scheme in order to be able to react and adapt to international market disruptions. This pre-existing scheme allows a reduction in working hours of up to 1,022 hours per year per full-time employee. The State reimburses the company 80% of the salaries normally receiv
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