COVID-19 Update for end of May 2020

As the deconfinement is in progress in Luxembourg and in the bordering countries, some of the temporary measures initially taken to cope with the COVID-19 crisis are being amended. You will find hereunder important recent updates concerning:

  • the conditions of leave for family reasons,
  • the amiable agreement between the Belgian and Luxembourg tax authorities,
  • and the short-time work for Covid-19.
Leave for family reasons may be taken in the context of the COVID-19 health crisis by a parent of a child:
  • who was born on or after 1 September 2015 and is dependent on the applicant;

  •  under the age of 13 who normally attends school but whose school has been closed or classes are still suspended for reasons directly linked to the health crisis or who cannot be taken in by any school or childcare structure because of the implementation of a scheme for alternating pupils' attendance or the application of imposed barrier measures, subject to producing a certificate attesting the situation issued by the Ministry of Education, Children and Youth;

  • according to the CSMI recommendations, a child is deemed vulnerable if it is suffering from a respiratory or cardiac pathology or is immuno-depressed.

If necessary, parents may alternate taking leave for family reasons. In this case, each parent must send in a separate form.

Parents of children with a disability who are between 13 and 18 years old (or up to the age of 25) may benefit from the leave for family reasons provided they receive the special supplementary allowance for disabled children from the CAE.

Employees who need to request this leave for familial reasons due to Covid-19 after 25 May have to submit a new form where the specific situation should be disclosed. 

Other conditions remain unchanged (the leave can be taken on an hourly basis and each parent can alternate, cannot be cumulative with the short time work in the household, obligation to notify the employer as soon as possible, ...).

Detailed information and the new form can be found on Guichet.lu.

Amicable agreement for Belgian cross-border workers

Luxembourg and Belgian authorities have signed an amicable agreement on the tax treatment of cross-border workers from these 2 countries in the context of the Covid-19 crisis. This agreement is valid from 11 March 2020 to 30 June 2020. It can, however, be extended from month to month upon joint decision by the competent authorities.

For this period, the days during which work was carried out at home (home working days) by a Belgian resident due to the COVID-19 confinement measures, can be considered as having been performed in Luxembourg, the condition being that the person would have normally worked in Luxembourg had those measures not been taken.

This situation may be extended on a monthly basis if the authorities of both countries agree so in writing at least one week in advance.

This information is currently not yet available for French and German residents. 

Short-time work during the deconfinement period 

For companies that had to completely or partially stop their activities because of the decisions taken by the government in March and are reopening partially during May and June, the short-time work for Covid-19 could still be requested for the missed hours of May and June. The deadline for application for both months is  31 May, 2020.

Only the companies that were not authorised to reopen from 11 May can benefit from an advance payment for June. For other companies, they will benefit from the refund of the short-time work after submission of the final monthly breakdown after the end of June according to the usual procedure.

For the future, the special Covid-19 short-time work procedure will probably stop as from July (to be confirmed). If the activity is not able yet to fully occupy the employees, the “short-time work for cyclical economic problems” could be applied for. The “Comité de Conjoncture” will decide based on the documented request from the applicant. 

Should you need further information, please feel free to contact us.

1. PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with 3,000 people employed from 75 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.

2. The PwC global network is the largest provider of professional services in the audit, tax and management consultancy sectors. We are a network of independent firms based in 158 countries and employing over 250,000 people. Talk to us about your concerns and find out more by visiting us at www.pwc.com and www.pwc.lu.

Contact us

Nelly Mazzarol-Denizon

Managing Director, People & Organisation, PwC Luxembourg

Tel: +352 49 48 48 2171

Emilie Nonweiler

Manager, PwC Luxembourg

Tel: +352 49 48 48 6062