Since 16 March 2020, commercial and craft activities have been significantly restricted on the Luxembourg… Since 16 March 2020, commercial and craft activities have been significantly restricted on the Luxembourg territory. As social distancing is considered one of the most effective ways of limiting the spread of the virus, the Luxembourg Minister of Health issued a ministerial decree on 16 March 2020 restricting certain commercial activities and requiring the closure of certain establishments. These measures were confirmed and supplemented by the grand ducal regulation of 18 March 2020. What does this mean for your business in practice? Below we explain some key measures.
All establishments in the cultural, recreational, sporting, and hotel and catering sectors are to remain closed to the public (e.g. museums, bars, restaurants, cinemas, cafés, nightclubs, libraries, swimming pools, sport facilities, cultural centres, etc.). However, such establishments are allowed to stay operational ‘behind closed doors’ since take-away, drive-in and home delivery services are expressly permitted. The objective is to limit interpersonal contact and avoid gatherings of people in a restricted or enclosed area. Likewise, hotels can stay open and are allowed to provide room service, although their restaurants and bars must remain closed. This means that office cafeterias must remain closed as well, unless a distance of two meters between persons can be ensured and respected.
These prohibitions will be maintained during the transition period out of confinement.
Other types of commercial and craft activities that receive a public and all craft activities outside a workshop are prohibited. This concerns all kinds of shops (clothing, multimedia, cosmetics, bookshops, real estate agencies, etc.) including shopping malls, driving schools, beauty salons, hairdressers, etc.
For compelling public interests and provided a proper distance can be maintained between and with customers or patients, some professional activities are exempt from the prohibition. Key exceptions are shops that mainly sell food and/or beverages, pharmacies, opticians, telecom service shops, financial and insurance institutions, motor fuel businesses and petrol stations, establishments that sell non-food items by means of drive-in or delivery, and businesses that sell non-food products between professionals. Companies that provide mixed activities are only exempt if their main activity falls within the scope of an exception.
It is important to note that the sale of products in the B2B context is still allowed, provided the business deals only with professionals.
Companies providing services or selling goods which are not usually open to the public do not fall within the scope of the aforementioned business restrictions and can, in our view, continue to trade, e.g. IT companies, consultancy firms, e-commerce providers (online shops), car leasing agencies, etc. Such companies are however generally recommended to restrict their activities to those that are essential to the running of the business, encourage teleworking when possible and take reasonable safety measures to protect all persons involved (employees, customers, representatives of business partners, etc.).
Finally, certain activities and sectors have been declared of essential interest to the population and the country, notably public services necessary for the proper functioning of the state, the health and food sectors, the production and distribution of energy and oil products, postal and telecommunications services, water distribution and the collection and processing of wastewater, the removal and management of waste, public transport, systems for currency exchange, payments and the settlement of financial instruments, security, cash transport and cleaning services, and essential activities relating to the functioning of the financial and (re)insurance sectors. Employers in these sectors may refuse to grant their employees leave during the current state of crisis.
As from 20 April 2020, the first phase of the Luxembourg exit strategy (deconfinement) commences which entails that construction sites and recycling centres can reopen. In addition, do-it-yourself and gardening businesses as well as businesses that mainly sell construction products and materials can reopen. Renovation and construction activities and activities of gardeners and landscapers are allowed again.
Nevertheless, any resumption of activity is accompanied by very strict barrier gestures. The wearing of a mask or any other device that covers nose and mouth is mandatory for interpersonal contact situations if the safety distance of two meters cannot be guaranteed and, in all circumstances in businesses that receive a public.
More information from the Luxembourg Ministry of Economy, including a Q&A and hotline, can be found here.
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This article was originally published HERE
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