The glossary to understand and take action

Short-time working

Short-time working makes it possible, under the conditions of a specific scheme, to respond to a temporary reduction in activity. Its use requires a procedure and compliance with the applicable decisions and obligations.

Démarche et formalité · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

What is this process for?

It does not constitute a general authorisation to reduce remuneration or freely suspend contracts. The reason, the employees concerned and the scheme timetable must be checked.

In your file

How to prepare the process

Describe the decline in activity and its causes with verifiable information. Identify the application procedure, the information to be provided and the tracking of hours. A favourable decision must be reconciled with the periods actually declared and the reimbursement conditions. As schemes may change, consult the current instructions before each application.

A scenario to help you understand

Educational example

A company facing a temporary difficulty prepares its application and organises reliable records of the hours concerned.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Vérifier le régime et ses conditions
  • Documenter la difficulté
  • Tracer les heures déclarées

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Economic CommitteeThe Economic Committee is involved in schemes relating to economic conditions and employment, in particular the examination of short-time working applications under the applicable framework.Employment Development Agency (ADEM)ADEM is Luxembourg’s public employment service. It supports employers in particular with recruitment and the declaration of job vacancies, with services and measures subject to their own conditions.Employment contractThe employment contract governs an employment relationship, with the respective obligations of the employer and employee within the applicable legal framework.Budget varianceDifference between an actual value and the budgeted value for the same scope and period.Financial forecastThe financial forecast translates the project's assumptions into expected results, cash flows and financing needs.Contribution marginDifference between sales and costs that vary with the level of activity, under the management model used.

Put it into practice

Explore further with our guides

Practical guideBudget and actuals: analysing variances in a dashboard

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.