Information Paid leave accrued under the Total Temporary Layoff between 1/05/2020 and 30/04/2021

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Service de l'Inspection du Travail

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Service de l'Inspection du Travail

17 rue Princesse Florestine
MC 98000 Monaco

Opening Hours : from 9.30am to 4.30pm from Monday to Thursday, from 9.30am to 12.30pm (doors close at 12) on Friday

Phone : (+377) 98 98 87 26

Phone : (+377) 98 98 41 93

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The total temporary layoff (CTTR) is a special measure that makes it possible to reduce or temporarily suspend the activity of employees.  It provides for the payment by the employer of part of the employee's remuneration, and reimbursement by the State, subject to certain conditions.

Full information on the CTTR is available on the dedicated page by following this link  

 

Principle

Paid leave accrued while an employee was subject to total temporary layoff (CTTR) between 1 May 2020 and 30 April 2021 will be transferred to the CTTR scheme.

 

Scope of application

This applies to all businesses that have had recourse to the CTTR between 1 May 2020 and 30 April 2021, regardless of the sector of activity, with the exception of employers of "household employees" and "private service providers".

With regard to the building sector, and in accordance with the specific provisions applicable to paid leave, the construction industry's funding body (Caisse de Congés Payés du Bâtiment or CCPB) will be substituted for each employer in the corporation.

 

Eligibility criteria 

  • For the employer: to have had recourse to the CTTR, in part or in full, during the period of 1 May 2020 to 30 April 2021
  • For the employee: to be eligible to accrue paid leave (minimum 4 weeks of CTTR between 1 May 2020 and 30 April 2021)

 

The following are excluded

  • The CTTR period from 1 March 2020 to 30 April 2020
  • Employees for whom remunerated leave has already been paid following the end or termination of a contract (redundancy, voluntary departure or resignation)

 

Terms of application

The days of leave accrued during the CTTR are treated, at the employee's choice:

  • Either as  
  • Or as days of leave

 

The employee must choose between taking paid leave or payment of the remuneration before 15 August 2021 and must inform his or her employer in writing.

Exception: In the construction sector, given the specificities of the paid leave system and the substitution of the CCPB for the employer, employees cannot opt for monetary compensation.

 

Calculation by the employer of paid leave accrued under the CTTR

Paid leave accrued during the CTTR period from 1 May 2020 to 30 April 2021 is calculated at 10% of the Partial Activity Allowance (IAP) paid by the employer to employees under the CTTR, considering that the CTTR corresponds to 83% of the net salary (excluding the application of the safeguard clause and capped salary), with the exception of paid leave already taken by the employees and paid by the employer for the period of 1 May 2021 to 31 July 2021.

If the employee opts:

  • For monetary compensation: this monetary compensation is added to the salary while the employee continues to work. It is calculated as a minimum on the basis of 10% of the IAP paid during the reference period for the acquisition of paid leave (from 1 May 2020 to 30 April 2021). It must be paid to the employee in a single payment before 30 November 2021
  • As concerns taking leave: the employee is on leave and receives compensation calculated at a minimum of 10% of the IAP paid during the reference period for the accruing of paid leave (from 1 May 2020 to 30 April 2021)

 

When paid leave is taken, the pay slip must distinguish between the number of days of paid leave accrued during the CTTR period and the number of days of leave accrued outside the CTTR period and their respective calculation.

This information must be included on the pay slip whenever paid leave is taken or monetary compensation is paid.

Example 1 : in October 2021, an employee is on leave for 15 days: 10 days were accrued while on the CTTR and 5 days were accrued outside the CTTR: the employee's pay slip will have to include two separate lines for paid leave: 

  • One line for the 10 days of paid leave accrued while on the CTTR and calculated at a minimum of 10% of the IAP corresponding to 10 days of paid leave and not subject to contributions
  • One line for the 5 days of paid leave (accrued outside the CTTR) and calculated in accordance with Act No. 619 of 26 July 1956 enacting the system for annual paid leave and subject to contributions

 

Example 2: in October 2021, the employer pays monetary compensation for paid leave to an employee who has chosen this option; the employee's pay slip will have to include a line mentioning the number of days of paid leave accrued under the CTTR and their calculation (not subject to contributions).

 

Payment arrangements 

If the employee has opted:

  • For monetary compensation, this payment will be made by the employer between 1 August 2021 and 30 November 2021
  • As concerns taking leave, this will be calculated at the time of taking the leave

 

Payment of paid leave for employees in the construction sector is made by the CCPB under the usual conditions and on the usual dates.

Procedures for reimbursement by the State  

A specific online service will be made available to employers so that their reimbursement requests may be submitted from August 2021.

Requests for reimbursement must be submitted via the dedicated online service by 15 December 2021 at the latest, in one single operation, for all employees concerned.

Employers will be reimbursed the usual 80% Partial Activity Grant (AAP) by the State

The remaining amount to be paid by the employer will be 20%, except for employers covered at 100% under the CTTR (for the whole period concerned), who will be reimbursed the usual percentage of 100% without any remaining costs to pay (nightclubs).

For paid leave accrued during the reference CTTR period (1 May 2020 to 30 April 2021) and taken before 1 August 2021, the employer cannot make any adjustments (amount paid to the employee or reimbursement of social security contributions paid).  Only the amount of 80% of the AAP paid by the State between 1 May 2020 and 30 April 2021 may be obtained

Social security contributions

As the basis for calculating the IAP is not subject to contributions, the amounts paid by the employer as monetary compensation or the equivalent in days of leave are also exempt from contributions.

Declarations of periods of paid leave accrued under the CTTR must be made to the Monaco Social Security Funds in accordance with specific procedures.

It is specified that days of leave accrued outside the CTTR are subject to the usual social security contributions.

Last update: 18/08/2021

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