Businesses in the horeca, tourism and events sectors will be able granted accelerated access to structural short-time work.
Photo: Maison Moderne/Romain Gamba
Businesses in the grand duchy will be able to place employees on partial unemployment schemes until the end of the year, the government has decided.
The move follows a meeting on Tuesday between the government, employers’ representatives and trade unions. It means that businesses affected by the covid-19 crisis can apply for partial unemployment aid beyond the state of emergency, which ends on 24 June.
The employment ministry says access to the scheme will be improved and made faster. However, new rules vary for different sectors and include restrictions on redundancies.
For instance, industrial enterprises will continue to benefit from the short-term unemployment scheme in order to be able to react to the disturbances in international markets. But they undertake not to lay off workers for economic reasons.
Businesses in the Horeca, tourism and events sectors, which are considered vulnerable, will be able to benefit from “accelerated access to structural short-time work without limiting the number of employees who will be entitled to it”. If necessary, these companies will also be able to resort to economic redundancies for up to a maximum of 25% of their employees until the end of the year. However, those made redundant must be given priority if the company recruits more staff as the economic situation continues to improve.
Other companies affected by the health crisis will also be able to resort to “structural short-time work by the accelerated route” provided that they do not lay off workers. The number of employees covered by partial unemployment may not exceed 25% of the workforce for the months of July and August, 20% for the months of September and October, and 15% for the months of November and December.
Applications from vulnerable sectors dismissing more than 25% of their workforce, as well as from all other companies wishing to make redundancies, will have to apply for so-called “traditional” short-time work. This will only be granted if the business carries out restructuring plans, which will take the form of a recovery plan for small businesses with fewer than 15 employees.
A tripartite meeting of government, employers and unions to discuss further exit strategy measures for the economy will take place in July.