Refusing leave requests and cancelling leave already granted in essential industries

Employers involved in activities that are essential for the maintenance of the vital interests of the population and the country are allowed both to refuse requests for leave during the state of crisis, and cancel leave already granted.

The activities considered essential are referred to in article 5 of the amended GDR of 18 March 2020. You can find the coordinated text that GDR here.

Grand-Ducal Regulation of 3 April 2020 amending the amended Grand-Ducal Regulation of 18 March 2020 introducing a series of measures as part of the fight against Covid-19, published in Memorial A n°235 of 3 April 2020 came into force on 3 April 2020.

Introduction of ‘Family Support Leave’

Another GDR aims to provide assistance through the creation of a paid ‘leave for family support’, to employees and self-employed individuals who are forced to stop working for the time during which a facility for the disabled or elderly is closed and they have to care for these individuals at home. The GDR also provides for protection against unfair dismissal for employees who benefit from ‘family support leave’.

‘Grand-Ducal Regulation of 3 April 2020 introducing leave for family support as part of the fight against Covid-19’, published in Memorial A n°237 of 3 April 2020 came into force on 18 March 2020.

Remuneration during illness and suspension of the calculation of incapacity to work

Derogations have been introduced from three legal provisions relating to sickness and incapacity to work:

• The mechanism for calculating the 78 weeks of incapacity for work due to illness (resulting  in automatic termination of the employment contract) is temporarily suspended during the period of the health crisis.

• The normal burden-sharing mechanism for sickness benefits is modified. Under the new temporary rules, the employer will not be responsible for payment of the incapacity for work for the period between the first day of the month following the declaration of the state of crisis (1 April 2020) and the end of the calendar month during which the state of crisis ends.

• The calculation of default interest for late payment of social security contributions is temporarily suspended for the duration of the state of crisis.

‘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’ published in Memorial A n°238 of 3 April 2020 came into force on 3 April 2020.

Suspension of medical examinations in the aid and care sector

Another GDR suspends the obligation for employers in the ‘aid and care sector’ to submit their future and current employees to the medical examinations provided for by the Labour Code, for the duration of the state of crisis.

‘Grand-Ducal Regulation of 3 April 2020 amending the Grand-Ducal Regulation of 1 April 2020 derogating from Articles L. 322-2 and L. 326-1 to L. 326-12 of the Labour Code’ published in Memorial A n°239 of 3 April 2020 came into force on 3 April 2020.

Aid for companies in temporary financial difficulty

A Law of 3 April 2020 implements an aid scheme for companies in temporary financial difficulty and amends the rules on social measures for the benefit of independent professional artists and intermittent workers in the entertainment industry and the promotion of artistic creation.

According to the Law, aid may be granted to companies in temporary financial difficulty. This aid, which will take the form of a repayable advance of up to EUR 500,000 per company, is granted on application to the competent Minister, provided that the conditions set out below are met:

• An unforeseeable event whose harmful impact on a certain type of economic activity during a given period must have been established by GDR.
• The company must be facing temporary financial difficulties.
• The company must have already exercised its economic activity before the unforeseeable event.
• There must be a direct causal link between the unforeseeable event referred to in the first bullet point and the company’s temporary financial difficulties.

The GDR provides that the harmful impact of the coronavirus crisis in this context extends over the period from 15 March 2020 to 15 May 2020.

‘Grand-Ducal Regulation of 3 April 2020 implementing Article 3 of the Law of 3 April 2020 relating to the establishment of an aid scheme for companies in temporary financial difficulty and amending the amended Law of 19 December 2014 relating to 1) social measures for the benefit of independent professional artists and casual entertainment workers 2) the promotion of artistic creation’ published in Memorial A n°230 of 3 April 2020’.  

Find the Ministry of Economy’s press release of 3 April 2020 here for more details.