Measure expected to hit Grand Duchy hard
Cross-border workers in Luxembourg who lose their job will in the future have their unemployment benefits paid by the Grand Duchy.
European Union rules agreed on Wednesday mean that, from 2021, the country where a worker was last employed will have to pay the out-of-work benefits rather than the country of residence.
Luxembourg will be hard hit by the measure as it has 180,000 cross-border workers who make up 46% of its workforce.
But the country will have an extra five years until 2026 to adapt, according to newspaper Les Échos.
The French daily said the new rules could double unemployment claims in Luxembourg from 10,000-15,000 currently up to 30,000.
The Ministry of Labour was unable to confirm the five-year delay when contacted by the Luxemburger Wort, the Luxembourg Times‘ sister paper.
Luxembourg first negotiated this stay of execution in June last year amid estimates the country would face an annual bill of €86 million.
Most of Luxembourg’s cross-border workforce hails from France, accounting for 100,000 so-called frontaliers, followed by 40,000 workers from Belgium and 40,000 from Germany.
The new measures would only apply to workers who have has six months of uninterrupted employment in Luxembourg before losing their job.
