POLITICS & INSTITUTIONS - ECONOMY

2021 floods

Partial employment scheme being made available following floods



The short-time working scheme is aimed at helping businesses that suffered damage to their premises, production equipment and stock. Matic Zorman

The short-time working scheme is aimed at helping businesses that suffered damage to their premises, production equipment and stock. Matic Zorman

The government has decided to allow businesses affected by last week’s floods to apply for a special partial unemployment scheme.  

The scheme will be made available to companies which suffered destruction or damage to their production equipment, stock, operating or production premises as a result of the floods.

During the partial unemployment period, the state will reimburse the affected business 80% of the wages normally received by the employees placed on the scheme. However, the compensation allowance must at least correspond to the minimum social wage for unskilled employees.

Reimbursement is limited to 250% of the minimum social wage. Companies will remain liable for payroll taxes and wages related to hours worked. In addition, companies that use the partial unemployment scheme must undertakes not to dismiss employees for economic reasons.

A fact sheet describing the prerequisites and practical procedures for submitting the application, as well as a link to the electronic assistant on the MyGuichet platform developed by the CTIE, are now available ion French on Guichet.lu. An English-language version will be made available soon, the authorities have said.