Luxembourg: businesses affected by gas shortages will be able to resort to short-time work

On 23 August, Luxembourg’s Minister of Labour, Employment and the Social and Solidarity Economy, Georges Engel, together with the Minister of the Economy, Franz Fayot, and the social partners, met within the framework of the Comité de conjuncture (Economic Committee, the primary goal of which is to maintain employment). They met to consider solutions to alleviate the underemployment occurring in companies, which, due to Ukraine-conflict-related gas supply shortages, might temporarily contract or cease business. They have agreed to allow employers affected by these gas shortages to resort to partial unemployment ‘in order to maintain employment and, therefore, (…) avoid layoffs,’ says a joint statement from the Ministries of Labor and Economy. However, short-time working will only be authorized if the production contraction or stoppage in an energy-intensive company is the result of ‘a government decision based on an emergency or load-shedding plan that imposes reduced gas consumption.’ Both ministers clarify that “the situation is certainly not here as yet, but we must prepare for any eventuality and already reassure companies and employees.”