COVID-19: LATEST NEWS FOR COMPANIES

All detailed information is available on the official governement website

  • Short-time work

On 20 May 2020, Deputy Prime Minister Dan Kersch, Deputy Prime Minister François Bausch and Finance Minister Pierre Gramegna presented a support package aimed at paving the way for a new start for the Luxembourg economy following the COVID-19 health crisis.

In this context, they announced that, for the most affected sectors, the recourse to short-time work for cases of force majeure Covid-19 will be replaced from July 2020 by a simplified structural partial unemployment scheme.  Companies affected by the pandemic crisis will thus continue to have access to short-time working on condition that they present a recovery plan, or even a job maintenance plan. Redundancies in the structural short-time working system are allowed, but to be avoided as far as possible. It should be noted that companies will be able to take advantage of a simplified or even ultra-simplified digitised procedure (more detailed information will follow as soon as it is available).

This announcement is part of the government’s desire to return to normal. In this context, it is recalled that only companies that have not been allowed to restart their activities since 11 May 2020 will still obtain advances. The other companies will only be reimbursed for short-time working once they have completed their accounts, which will have to be drawn up via MyGuichet.

As a result :

– the applications for short-time working to be submitted by 31 May 2020 at the latest for the whole month of June will be processed on the basis of the “short-time working for cases of force majeure Covid-19” scheme;

– companies which were eligible in the past for partial unemployment for economic reasons will also be able to submit their application on this basis;

– other companies affected by the pandemic crisis will have access to simplified structural short-time working.

At its meeting on 28 May 2020, the Economic Committee, at its meeting on 28 May 2020, favourably advised the applications for Covid-19 short-time working already submitted for the month of June by companies which were not unable to work from 11 May 2020 on the basis of a government decision. These companies will be informed by email of the acceptance of their request with an indication of a file number during the day of 29 May 2020.

A new meeting of the Economic Committee is scheduled for Thursday 4 June 2020 where the applications submitted, at the latest by 31 May 2020, will be processed and it is expected that the companies concerned will receive information by e-mail during the afternoon of 4 June 2020.

Companies, which have not been allowed to restart their activities since 11 May 2020, will not receive an e-mail, but the advance payment they have requested.

ADEM has informed that, at present, only the statement for the month of March (deadline: 30 June 2020) can be introduced following the e-mail sent by ADEM to the companies having received an advance for the month of March. The possibility of drawing up the statements for the following months will be communicated to the companies by ADEM as and when it becomes available.


  • Covid-19 pandemic-related family leave covering the period from 25 May 2020 to 15 July 2020

As part of the measures taken by the Government to combat the spread of Covid-19, a specific procedure has been put in place enabling parents who have to take care of their child(ren) under the age of 4, or aged between 4 and 13 and who have not been able to be accommodated in a facility, to benefit from family leave. To this end, a new form for leave for family reasons is available and applicable from 25 May 2020. Please consult the details of the communication on guichet.lu as well as the Grand-Ducal regulation of 20 May 2020 derogating from the provisions of articles L.234-51 and L.234-53 of the Labour Code.


  • Signing of an amicable agreement between the authorities of Luxembourg and Belgium specifying the tax treatment of frontier workers in the context of the Covid-19 crisis

On 19 May 2020, the competent authorities of Luxembourg and Belgium proceeded to sign a mutual agreement on the basis of Article 25, § 3 of the Convention between Luxembourg and Belgium for the avoidance of double taxation and the settlement of certain other matters with regard to taxes on income and on wealth, and the Final Protocol thereto, signed on 19.09.1970, as amended by the Addenda of 11.12.2002 and 16.07.2009 in order to take into account the situation related to the Covid-19 crisis. Please consult the detailed information here.


  • Suspension of the time limits provided for in the procedure for terminating the apprenticeship contract

The Grand-Ducal Regulation of 20 May 2020 suspending the time limits provided for in the procedure for terminating the apprenticeship contract provides for the suspension of the eight-day time limits provided for in the procedure for terminating the apprenticeship contract.


Short-time work

  • Applications for short-time working in  April must be submitted by 15 May at the latest, failing which, they will be time-barred.
  • Applications for partial unemployment for the month of May must be submitted by 31 May at the latest, failing which, they will be time-barred.
  • Applications for partial unemployment for the month of June must be submitted by 31 May at the latest, failing which they will be time-barred.
  • The Government wants to return to the “normal” system of short-time working. As a result, companies in category 2 (i.e. those not subject to a prohibition on opening) will no longer receive an advance but will have to draw up a statement for reimbursement. Firms which are no longer obliged to close from 11 May fall into category 2.
  • Companies that remain closed in accordance with the provisions of the Grand-Ducal Regulation of 6 May 2020 will continue to receive advances until the opening ban is lifted.
  • The companies will receive an access code by personalised e-mail enabling them to fill in the form for the March settlement. The form for the April settlement will be sent at a later date.

Covid-19 pandemic-related family leave covering the period from 25 May 2020 to 15 July 2020

As part of the measures taken by the Government to combat the spread of Covid-19, a specific procedure has been put in place enabling parents who have to take care of their child(ren) under the age of 4, or aged between 4 and 13 and who have not been able to be accommodated in a facility, to benefit from family leave. To this end, a new form for leave for family reasons is available and applicable from 25 May 2020. Please consult the details of the communication on guichet.lu as well as the Grand-Ducal regulation of 20 May 2020 derogating from the provisions of articles L.234-51 and L.234-53 of the Labour Code.

Signing of an amicable agreement between the authorities of Luxembourg and Belgium specifying the tax treatment of frontier workers in the context of the Covid-19 crisis

On 19 May 2020, the competent authorities of Luxembourg and Belgium proceeded to sign a mutual agreement on the basis of Article 25, § 3 of the Convention between Luxembourg and Belgium for the avoidance of double taxation and the settlement of certain other matters with regard to taxes on income and on wealth, and the Final Protocol thereto, signed on 19.09.1970, as amended by the Addenda of 11.12.2002 and 16.07.2009 in order to take into account the situation related to the Covid-19 crisis. Please consult the detailed information here.

Suspension of the time limits provided for in the procedure for terminating the apprenticeship contract

The Grand-Ducal Regulation of 20 May 2020 suspending the time limits provided for in the procedure for terminating the apprenticeship contract provides for the suspension of the eight-day time limits provided for in the procedure for terminating the apprenticeship contract.

More info HERE and HERE.



This Grand-Ducal Regulation extends the derogation from Article L. 551-2 of the Labour Code in favour of certain activities following the changes made to the amended Grand-Ducal Regulation of 18 March 2020 introducing a series of measures in the context of the fight against COVID-19.


This Grand-Ducal Regulation extends the suspension of the application of point 5 of Article L.585-6 of the Labour Code in favour of certain activities following the changes made to the amended Grand-Ducal Regulation of 18 March 2020 introducing a series of measures in the context of the fight against COVID-19.


This Grand-Ducal Regulation extends the possibility for a student to work up to 40 hours per week over a period of one month or 4 weeks in favour of certain activities as a result of the changes made to the amended Grand-Ducal Regulation of 18 March 2020 introducing a series of measures in the context of the fight against COVID-19.


This Grand-Ducal Regulation extends the possibility of working up to 12 hours a day and 60 hours a week for certain activities following the changes made to the amended Grand-Ducal Regulation of 18 March 2020 introducing a series of measures in the context of the fight against COVID-19.


This Grand-Ducal Regulation makes a series of changes to the text in force by providing for new measures for gradual exit from the state of containment, subject to strict compliance with health conditions, from 11 May.


  • Grand-Ducal Regulation of 6 May 2020 on the introduction of a new certified emergency allowance for self-employed workers in the context of the Covid-19 pandemic

The Luxembourg Government has decided to strengthen the support mechanism for self-employed persons affected by the financial consequences of the COVID-19 pandemic. On 6 May 2020, the Council of Government thus approved, on the proposal of the Minister for Small and Medium-Sized Enterprises, Lex Delles, a Grand-Ducal regulation aimed at setting up a new, one-off, non-refundable financial aid scheme in their favour. The amount of the new aid varies according to the contributory income bracket in which the person falls, these amounts being set at 3,000, 3,500 and 4,000 euros.


  • The establishment of a guarantee scheme for the Luxembourg economy in the context of the Covid-19 pandemic

The State shall set up a guarantee scheme for loans granted by credit institutions, between 18 March 2020 and 31 December 2020, in favour of companies that find themselves in temporary financial difficulty following the Covid-19 pandemic, under the conditions defined by this Act.


  • The Grand-Ducal Regulation introducing a series of measures on safety and health at work as part of the fight against VIDOC-19.

This Grand-Ducal Regulation provides for the introduction of a series of specific obligations to be applied by employers and employees for the duration of the state of crisis in order to take account of the exceptional circumstances linked to the COVID-19 epidemic and to ensure the protection of the safety and health of employees in the face of this COVID-19 epidemic.


  • The grand-ducal regulation amending the amended grand-ducal regulation of 18 March 2020 introducing a series of measures in the context of the fight against COVID-19.

This Grand-Ducal Regulation proposes to make a series of changes to the text in force, motivated by the fact that the evolution of the situation allows a gradual exit from the state of containment. Thus, from 20 April 2020, construction, renovation, transformation, maintenance and revision sites, DIY and gardening businesses, as well as the activities of gardeners, landscapers and businesses selling mainly seasonal products for planting will be reopened. In addition, civil weddings and funerals will be allowed, but limited to a maximum number of twenty people. In order to limit the risk that this opening will have an impact on the resurgence of VIDOC-19, the wearing of the mask, which is recommended for all outdoor travel, will become mandatory in a series of hypotheses outside the home of the person concerned. This draft Grand-Ducal Regulation also proposes to extend the temporary restriction on the entry of third-country nationals into the territory of the Grand Duchy until 15 May 2020 and to extend the scope of the exemptions and derogations provided for.


  • The grand-ducal regulation amending the grand-ducal regulation of 8 April 2020 derogating from Article L.121-6 of the Labour Code.

The purpose of this Grand-Ducal Regulation is to specify that while the 26-week protection period provided for in paragraph 3 of Article L. 121-6 of the Labour Code is extended for a period equal to the period between the entry into force of this Regulation and the end of the state of crisis, dismissal for serious misconduct may only take place from the first day of the 27th week of protection.


  • Ministerial regulation providing for exemptions from mandatory driving times and rest periods for drivers of heavy goods vehicles due to the coronavirus pandemic.

The regulation adapts during the crisis period the maximum daily and biweekly continuity periods as well as the weekly rest periods for lorry drivers.


  • ILR Regulation extending during the crisis period the duration of default supply and the duration of supply of last resort in the natural gas and electricity sectors.

Under these regulations, the time available to a customer in default to choose a new supplier is extended by the duration of the state of crisis if this period expires before the end of the state of crisis.


  • Law of 18 April 2020 adapts the validity of the period for designating the default supplier as defined by the organisation of the natural gas market.

The validity of the period of designation of the default supplier may be extended by decision of the Luxembourg Regulatory Institute for a period of up to six months after the end of the state of crisis.


  • Attestation required for French cross-border workers

Upon presentation of the certificate attesting the employment relationship with the employee, along with the documents requested by the French governemnt, all cross-border workers residing in France will be exempted from restrictions on border crossings between France and Luxembourg.


  • FAQ from the CCSS

The CCSS has published a Q&A for employers in the context of the COVID-19 crisis. We would like to draw your attention in particular to the penultimate question concerning the arrangements for employees residing abroad and teleworking from home during the period of the coronavirus crisis.


The Health Directorate issued temporary health recommendations to employers and employees as part of the health crisis related to COVID-19. Please consult the recommendations for :


  • The Grand-Ducal Regulation derogating from Article L.121-6 of the Labour Code

This Grand-Ducal Regulation provides that sick leave taking place during the health crisis shall not be counted as part of the 26-week period of protection against dismissal in the event of incapacity for work provided for in paragraph 3 of article L. 121-6 of the Labour Code, suspending the period during the state of crisis so that it cannot expire during the crisis.


  • The Grand-Ducal Regulation derogating from article L.551-2 of the Labour Code

This Grand-Ducal Regulation provides that employees undergoing professional redeployment who carry out activities that are essential for the maintenance of the vital interests of the population and the country may benefit from exceptional bonuses or gratuities for the duration of the state of crisis.


  • Suspension of certain time limits provided for by the law of 28 April 2017 on major accidents involving dangerous substances

This Grand-Ducal Regulation suspends certain time limits in the context of the investigation of cases that result in tacit decisions.


  • Application of time-limits for reviewing procedures relating to public contracts and concessions and temporarily adapting certain other formal arrangements

The purpose of the Grand-Ducal Regulation is to provide an additional exception to the amended Grand-Ducal Regulation of 25 March 2020 suspending the time-limits for judicial review and temporarily adapting certain other procedural arrangements, so that the extension of the time-limits for the introduction of review procedures, provided for in Article 1(2) thereof, does not apply either to claims against public procurement documents or to procedures for the award of public procurement contracts and concessions. The aim is to allow public procurement, which is essential to the continuity of public services and likely to help the economy to recover, to be maintained.


  • Temporary measures in the electricity and natural gas sectors in the context of the fight against Covid-19

This Grand-Ducal Regulation provides for temporary derogations due to the fact that some tasks incumbent on the players in the electricity and natural gas sectors can no longer be carried out within the time limits set by the amended Act of 1 August 2007 on the organisation of the electricity market and the amended Act of 1 August 2007 on the organisation of the natural gas market or by acts taken pursuant to this same Act.


  • Authorisation to wear hygiene masks and respiratory protection masks in the public space

The purpose of this Grand-Ducal Regulation is to authorise the wearing of hygiene masks and respiratory protection masks in all public places in order to limit the spread of the virus.


  • The grand-ducal regulation amending the amended grand-ducal regulation of 18 March 2020 introducing a series of measures as part of the fight against Covid-19

This Grand-Ducal Regulation specifies, clarifies and completes the current wording of Articles 6 and 7 of the Grand-Ducal Regulation of 18 March 2020 relating to penalties for non-compliance with measures to combat Covid-19, for greater legal certainty.


  • Set up of a certified emergency allowance for self-employed workers in the context of the Covid-19 pandemic

This Grand-Ducal Regulation aims to provide financial support, in the form of a tax-free certified emergency allowance, to traders, craftsmen and intellectual workers working as self-employed persons. It is intended exclusively for persons who have the status of self-employed persons in their main occupation and who are affiliated as such to social security.


  • Set up of an aid scheme for projects related to the fight against the covid-19 pandemic

The details of this Grand-Ducal Regulation are set out in a separate press release.


  • Suspension of certain controls and deadlines in respect of classified establishments and the control of major-accident hazards involving dangerous substances

The ministerial decree of 24 March 2020 suspending certain controls and deadlines in respect of classified establishments and the control of major-accident hazards involving dangerous substances stipulates that the deadlines for submitting reports to the Inspectorate for Labour and Mines (ITM) on the basis of the amended Act of 10 June 1999 on classified establishments or the Act of 28 April 2017 on major accidents involving dangerous substances are suspended until the emergency situation ceases.


  • FAQ AAA

The Accident Insurance Association (AAA) has established a “Frequently asked questions (FAQ)” model about the work accidents of teleworkers.


  • Suspension of certain social security mechanisms

The Grand-Ducal Regulation of 3 April 2020 derogating from the provisions of Articles 11, paragraph 2, 12, paragraph 3, 14, paragraph 2 and 428, paragraph 4 of the Social Security Code and L.121-6, paragraph 3 of the Labour Code derogates from three legal provisions:

  1. the mechanism for calculating the 78 weeks of incapacity for work due to illness is temporarily suspended during the period of the health crisis;
  2. the normal mechanism of burden-sharing for sickness benefit is derogated from;
  3. the calculation of default interest for late payment of social security contributions is temporarily suspended for the duration of the state of crisis.

The cost of the compensation due to the employee in the event of incapacity for work is the responsibility of the CNS from April 1, 2020 until the end of the calendar month during which the state of crisis ends and will no longer fall under the salary maintenance regime provided for in Article L. 121-6. of the Labour Code.


  • Possibility of refusing requests for leave and those already granted

Article 1 of the Grand-Ducal Regulation of 3 April 2020 modifying article 5 (2) of the Grand-Ducal regulation of 18 March 2020 provides that “During a state of crisis, employers affected by the application of this article may refuse any request for leave and cancel any leave already granted. »


  • Introduction of Family Support Leave

The Grand-Ducal Regulation of 3 April 2020 aims to provide assistance, through the creation of a paid “family support leave”, to employees and self-employed workers who are forced to stop working for the time of closure of a structure for disabled or elderly people when they have to care for these people at home. This draft regulation also provides for measures to protect against unfair dismissal of employees benefiting from “family support leave”.


  • Suspension of certain time limits and environmental obligations

The Grand-Ducal Regulation of 1 April 2020 suspends certain deadlines and certain obligations with regard to the environment, suspends, for the duration of the state of crisis, certain deadlines in the context of the investigation of files which materialise in tacit decisions. Consult the regulation here.


  • Communication with the CCSS

The Joint Social Security Centre (CCSS) would like to inform you that it has reduced the physical presence of many of these agents in the context of the VIDOC-19 pandemic. The CCSS nevertheless hopes to be able to answer your many questions within the limits of our availability. In order to speed up the response time to your questions, we kindly ask you to contact us via our contact form.

With regard to the declarations that you have to submit to the CCSS, we similarly ask you to favour the electronic way via SECUline for all your procedures, possibly by using the services of your agent or trustee who already carry out some of the usual procedures with the CCSS. An inventory of all possible steps with the SECUline tool can be found under www.seculine.lu.


  • Flexibility for German cross-border workers

Luxembourg and Germany have agreed that, as a result of the measures taken to combat the pandemic, working days during which workers are teleworking from their main residence may be considered as working days in the State where the activity would normally have been carried out.

The working days during which cross-border workers work from home during the Covid-19 pandemic therefore do not have to be taken into account for the calculation of the 19-day tolerance rule laid down in the understanding agreement between Germany and Luxembourg of 26 May 2011.

This time-limited arrangement will apply from 11 March 2020 and the exact modalities for the application of this agreement will be communicated at a later date. Detailed info here.


  • Suspension of the expiry period of building permits

The one-year expiry period for building permits provided for in Article 37(5) of the amended Act of 19 July 2004 on municipal planning and urban development, which did not expire before the state of crisis, is suspended for the duration of the state of crisis. This suspension temporarily halts the course of the crisis without erasing the period that has already elapsed. Read the regulation here.


  • Suspension of time limits for the negotiation of a social plan

The Grand Ducal Regulation of 1 April 2020 derogating from the time limits laid down in article L. 166-2. of the Labour Code suspends the time limits applicable, during the negotiation of a social plan in the context of collective redundancies, and, where applicable, the related conciliation procedure, for the duration of the time of crisis.


  • Suspension of one of the reasons for withdrawing early retirement benefits

The Grand Ducal Regulation of 1 April 2020 derogating from article L. 585-6. of the Labour Code temporarily suspends one of the reasons for withdrawing early retirement benefits, namely that of resuming an activity generating an income which, over a calendar year, exceeds half of the minimum social wage applicable to the employee concerned per month.

This Grand Ducal Regulation applies only to companies pursuing one of the activities referred to in Article 3 (2) or Article 5 passage 1 of the Grand Ducal Regulation of 18 March 2020 introducing a series of measures to combat Covid-19.


  • Suspension of the trial periods of employees affected by partial unemployment for cases of force majeure (coronavirus)

The Grand Ducal Regulation of 1 April 2020 derogating from articles L. 111-3., L. 121-5., L. 122-11. and L. 131-7. of the Labour Code suspends the probationary period for employees linked to a company that has had to stop its activities or slow down its activities in such a way that it is obliged to put its staff on “short-time working for force majeure Covid-19”, following the time of crisis.


  • Modification of the modified Grand Ducal Regulation of 18 March 2020 introducing a series of measures to combat Covid-19

The Grand-Ducal Regulation of 1 April 2020 modifying the modified Grand Ducal Regulation of 18 March 2020 introducing a series of measures in the fight against Covid-19 modified the cited Grand Ducal Regulation in article 5 by adding the activity “les services de transport, de transbordement et d’expédition de marchandises et de fret” (translated:”transport, transhipment and freight forwarding services”).

As a result, it is also possible for employers concerned by this modification to refuse any leave during the time of crisis and to work up to 60 hours/week, provided they have the authorization of the Minister of Labour, Employment and the Social and Solidarity Economy.


  • New certificate for extraordinary leave for family reasons

A new certificate is available here and valid from 30 March 2020. It must be completed and sent to the employer and the CNS even if a previous form has already been sent. You will find the details here.


  • The combination of leave for family reasons and partial unemployment is not possible

By way of derogation from Article L. 234-51, paragraph 1, of the Labour Code, an employee with a dependent child under the age of 18 years who, in the event of serious illness, accident or other compelling health reasons, requires the presence of one of his parents cannot claim, for the duration of the state of crisis as laid down by the Law of 24 March 2020 extending the state of crisis declared by the Grand-Ducal Regulation of 18 March 2020 introducing a series of measures in the context of the fight against Covid-19, to leave for family reasons only on condition that neither the claimant employee, nor the other parent, nor another member of the household in question falls under the partial unemployment scheme provided for in Articles L. 511-1 et seq. of the same Code during the period for which the leave is requested and that no other means of care is available.

The regulation can be found here.


  • Agreement between the Government and the presidents of the OGBL and LCGB unions

This agreement provides that, if employers resort to the short-time working scheme in order to combat the economic and social consequences of Covid-19, the compensation indemnity, which in principle corresponds to 80% of the normal reference wage capped at 250% of the minimum social minimum wage for unskilled employees, may not be less than the amount of the minimum social minimum wage for unskilled employees. Please find all the details here as well as the Government’s official press release here.


  • Possible derogations from the maximum working time in certain sectors

By way of derogation from Article L. 211-12 of the Labour Code respectively to a collective labour agreement applicable to the undertaking concerned, the maximum working time may be extended to 12 hours per day and 60 hours per week in favour of the activities listed in article 3, paragraph 2, of the amended Grand Ducal Regulation of 18 March 2020 introducing a series of measures to combat Covid-19, respectively of activities which are essential for the maintenance of the vital interests of the population and of the country and which are covered by the first paragraph of Article 5 of the same Regulation, provided that the undertaking in question so requests. You can consult the regulations here.


  • New procedure for granting short-time work in case of force majeure

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 via an online form at: http://guichet.lu/cocp. Please find all the details here.


  • The government’s Economic Stabilization Program COVID-19

Please find the entire program as well as a summary of the objectives and measures in the form of infographics. For questions, please contact the House of Entrepreneurship: +352 42 39 39 445 or the Ministry of Economy hotline: 8002 8080.


  • Company support measures by ODL

In the context of the coronavirus COVID-19, ODL has implemented the a series of measures to strengthen its support to Luxembourg companies. The details are available here.


  • Modifications of the Grand-Ducal Regulation of 18 March introducing a series of measures to combat Covid-19

The Grand-Ducal Regulation of 20 March 2020 amending the Grand-Ducal Regulation of 18 March 2020 introducing a series of measures as part of the fight against Covid-19 provides for exemptions, inter alia, from the ban on all craft activities outside workshops (article 4) and the restrictions on the movement of heavy goods vehicles on Sundays and public holidays (article 15). All the derogations can be consulted here.