Applying for unemployment benefits for a young residents who have completed their training

Any young Luxembourg resident who has completed his training may, under certain conditions, receive unemployment benefits if he has dropped out of school or failed to find a job after completing his studies.

He then becomes a unemployed person receiving unemployment benefits:

The social security contributions and taxes generally deducted from the salary are deducted from the full amount of unemployment benefit.

Who is concerned

Unemployment benefits may, under certain conditions, be paid to a young person at the end of his or her training.

These persons must be registered with the National Employment Agency (Agence pour le développement de l'emploi - ADEM) as a job seeker and reside in Luxembourg.

The following may receive full unemployment benefit:

  • young workers who have completed a cycle of full-time study;
  • young workers who have dropped out of their studies before completion of said studies;
  • full-time trainees/apprentices who have not found a job at the end of the training contract.

Prerequisites

General terms and conditions

In order to be entitled to the full unemployment benefit, an unemployed person must:

  • be domiciled in Luxembourg:
  • be between 16 and 28 years old (see table below);
  • be fit for work, available for the labour market and be ready to accept any suitable job (according to criteria of pay, physical and mental fitness, daily commute, family situation, working conditions, etc.);
  • be registered as a job seeker with the ADEM and file an application for full unemployment benefit;

Moreover, he should, in principle ,not:

  • act as manager, director, managing director or head of day-to-day management in a company;
  • be the holder of a business permit.
A person who performs such a function or has a business permit can still claim unemployment benefits, provided that their application specifies the entitlement to it according to Art. L.521-18 (supplemental work or other income). In addition, any income earned from this activity that exceeds the defined threshold will be deducted from the full unemployment benefit

Specific conditions in the event of an intention to start or take over a business

Job seekers who wishes to start or take over a business are also subject to specific conditions:

  • they have not previously held any shares in this business;
  • They will hold the majority of the capital following the creation or the takeover of the business.

Note that the condition of being ready to accept any proposed job is not applicable for a period of 6 months if the job seeker has requested and received ADEM's approval to prepare the creation or takeover of a business.

This request for a permission to create or take over a business must be carried out at the latest before the end of the 6th month of unemployment benefits, and must be accompanied by:

  • a business plan;
  • a financing plan;
  • a certificate from the Ministry of the Economy stating that the request meets the conditions for the issue of a business permit.

Conditions for granting full unemployment benefits to an unemployed young worker

Benefits will be granted based on the conditions in the following table:

Qualifications

Age

Rights

No qualification

less than 21 years of age

unemployment benefits provided the candidate has been registered with ADEM for 6 months

No qualifications

more than 21 years of age

no unemployment benefits

Successful completion of the apprenticeship with an employer

less than 23 years of age

unemployment benefits with immediate effect

Successful completion of the school programme of the apprenticeship

less than 23 years of age

unemployment benefits provided the candidate has been registered with ADEM for 6 months

Successful completion of the apprenticeship with the school programme and an employer

more than 23 years of age

no unemployment benefits

Successful completion of the secondary school diploma;

less than 25 years of age

unemployment benefits provided the candidate has been registered with ADEM for 6 months

Successful completion of the secondary school diploma

more than 25 years of age

no unemployment benefits

Successful completion of 4 academic years (Master I)

less than 28 years of age

unemployment benefits provided the candidate has been registered with ADEM for 6 months

Successful completion of 4 academic years (Master I)

more than 28 years of age

no unemployment benefits

Abandonment of university studies

less than 25 years of age

the right to unemployment benefits at the earliest 6 months after the end of the winter / summer semester

The age that is taken into account is the age on the day of the registration as a job seeker.

Note that no benefit of any kind will be paid in the following cases:

  • abandonment of a job or an apprenticeship contract without a valid reason;
  • termination of an apprenticeship contract or internship contract for serious misconduct;
  • dismissal for serious reasons.

Preliminary steps

The application for unemployment benefits is carried out after the registration as a job seeker with the National Employment Agency (Agence pour le développement de l'emploi – ADEM).

How to proceed

Filing an application for full unemployment benefits

The young job seeker must register as a job seeker with the National Employment Agency (Agence pour le développement de l'emploi – ADEM);

Following his registration as a job seeker with the ADEM, the applicant will be directed to the unemployment service at an opportune time for the submission of his claim (see table above).

The relevant agent at ADEM will provide the job seeker with a number of forms to fill in, in particular:

  • a full unemployment benefits application form;
  • a declaration of income.

An unemployed person on benefits must declare to the placement bureau any and all income from paid professional activities, whether regular or occasional, on the understanding that this income may, in certain circumstances, be compatible with full unemployment benefit.

Supporting documents

Depending on the specific situation of the applicant, the agent may request:

  • a copy of the initial apprenticeship contract;
  • a copy of the last diploma awarded;
  • a copy of the letter from the Chamber of Skilled Trades and Crafts announcing the successful completion of the exam.

Once all these documents have been filled in, the relevant agent at the ADEM will examine the application for full unemployment benefit, and will handle the case from that point forward.

Amount of benefits

The amount of benefits is set at:

  • 40 % of the social minimum wage for adolescents of 16 and 17 years of age, or who failed the final apprenticeship examination;
  • 70 % of the social minimum wage for other young people.

If the young person has dependent children, the unemployment benefit can be increased by 5 %.

Unemployment benefits are adjusted according to changes in the cost of living (index).

Unemployment benefit payments begin 26 weeks after registering as a job seeker, for young people:

  • who have been in full-time education for more than 9 years; or
  • who have completed professional training courses/internships, or in-company training courses organised by the ADEM.

If the training is abandoned before completion of one year of study, the period taken into account in the calculations only begins 6 months after the end of the school year.

Period of benefit entitlement

Any unemployed person meeting the acceptance conditions may be entitled to benefit for a maximum of of 12 months.

Benefit payments to the young unemployed are stopped:

  • when the set limits for the duration of payment are reached;
  • when one or more conditions for granting the benefit are no longer fulfilled.

The unemployment benefit is suspended if the beneficiary:

  • collects a professional tideover allowance; or
  • has requested and obtained the exemption from its obligations to report to ADEM for a maximum period of 25 working days.

Requirements

In order to receive unemployment benefit, the unemployed persons in receipt of it must:

  • report at the dates and times specified by the referring guidance counsellor at the ADEM, or report to the ADEM at least once a month, if no meeting is scheduled;
  • immediately inform the referring guidance counsellor of any change in their personal situation.
Job seekers who receive benefits may be exempted from seeing their counsellor for a maximum of 25 working days a year, at a rate of 1/12th per month of registration as a job seeker. The job seeker in receipt of benefits must request this exemption from the ADEM.

Change of status during the period of unemployment

In specific situations, such as illness, travel abroad, absence for personal reasons, training, or the acceptance of a part-time or temporary job, the job seeker in receipt of benefit must inform their referring guidance counsellor at the ADEM, observing the following requirements:

  • in case of incapacity for work, the job seeker on benefits must provide a certificate of incapacity;
  • for a stay abroad or an absence, a request for leave must be signed and approved before their departure;
  • if the job seeker on benefits engages in part-time or temporary work, they must provide a copy of the temporary assignment contract;
  • in case of training, the job seeker on benefits must provide the certificate of registration for the training course.

Sanctions

The director of the ADEM may then decide to temporarily or permanently withdraw the full unemployment benefit.

  • if the recipient turns down an appropriate job;
  • if the recipient refuses to take part in internships, courses or public service works assigned by the ADEM without a legitimate reason;
  • if the unemployed person makes no effort to actively seek an appropriate job.

Moreover, if the unemployed person in receipt of benefits does not present themself at ADEM and has no valid excuse for not doing so, sanctions can be applied, ranging from 7 days of loss of benefits to 30 days in case of recidivism, up to the permanent suspension of unemployment benefits.

If the unemployed person in receipt of benefits has provided false information or misrepresentations to claim unemployment benefits, he may have to repay them to the ADEM.

Who to contact

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