Changes in legislation for trainees in Luxembourg

New rules in terms of compensation

The Article L.152-4 of the Labor Code provides a compensation of at least 30% of the minimum social wage for all internships agreed by a school under an agreement and having a duration of four weeks or more.

For all internships not agreed by a school (but however under a trainee-company agreement), the Article L. 152-8 of the Labor Code provides a compensation at the rate of :

• 40% of the minimum social wage for any internship lasting between four and twelve weeks ;
• 75% of the minimum social wage for any internship lasting between more than twelve weeks and twenty-six weeks included.

Compensation for such internships (whether approved by a school or not) remains optional when their duration is less than four weeks.

Entitlement to paid holidays

According to Article L. 233-1 of the Labor Code, all employees as well as all persons working in order to acquire a professional training are entitled to holidays and public holidays, and fall under the scope of the legislation applicable regarding paid holidays.

For more information see the ITM website.

Exceptional measures COVID-19

You will find below information on the measures decided by the government in relation to the exceptional situation generated by the COVID-19.

Tax agreement between Belgium and Luxembourg in the context of the COVID-19 crisis

In order to limit the tax impact for cross-border employees following the COVID-19 crisis, Belgium has concluded an agreement with Luxembourg.

Until August 31, 2020, days worked at home (in Belgium) will be considered as days usually worked in Luxembourg, where workers are employed.

However, this agreement does not apply to days that would normally have been worked from home or in a third state, regardless of the measures linked to the pandemic. Thus these days remain taxable in Belgium.

Employees must therefore keep the necessary documents stating which part of the working days at home is due to measures to combat the pandemic (a written certificate from the employer for example).

Tax agreement between France and Luxembourg in the context of the COVID-19 crisis

The tax agreement signed between France and Luxembourg on teleworking for cross-border workers in the context of the crisis will also remain applicable until August 31, 2020.

Until this date, the days worked from home will not be taken into account in the usual calculation of 29 days.

No date has been set for Germany so far, thus the agreement concluded in this way are applicable until further notice.

Partial unemployment from July 1, 2020

As the special partial unemployment scheme in the event of force majeure COVID-19 ends on 30.06.2020, new measures have been implemented to support companies affected by the crisis.

Indeed, 4 new partial unemployment measures have been implemented. All details are available on Guichet.lu website.

CONTACT

For more information about these exceptional measures due to COVID-19 and how Grant Thornton can help, please contact our experts at the following email address: HRpayroll@lu.gt.com.