Following the Covid-19 crisis, absences due to quarantine or isolation are frequent and the relative financial loss can be significant for employers or self-employed persons.
The Union des Entreprises Luxembourgeoises has discussed with the Ministry of Social Security in order to protect employers against the financial cost of continuing to pay salaries to workers (Lohnfortzahlung) who are unable to work.
“These are tough times for companies and we want to do everything we can to support them, especially in the case of absences caused by the Covid-19 crisis. We are delighted with the agreement reached with the Government which provides for a sharing of the related costs”, says Jean-Paul Olinger, Director of UEL and President of the Mutualité des employeurs (MDE).
In order to further support employers and self-employed persons in the context of the Covid-19 crisis, the MDE will henceforth reimburse the full amount (100% instead of 80% previously) for periods of incapacity for work corresponding to quarantine or isolation ordered by a competent authority.
This measure will be applied retroactively from 1 July 2020 and will be implemented from the beginning of 2021.
A more detailed communication will be sent to all businesses in early 2021.
It should also be noted that these absences will not be taken into account for the determination of financial absenteeism when filing with the MDE.