Aid for the creation of a work-integration job for a long-term unemployed person
Last update
Employers who wish to create a work-integration job for a long-term unemployed person can, in certain circumstances, apply for financial aid.
Applications must be submitted to the National Employment Agency (Agence pour le développement de l'emploi - ADEM).
This financial aid cannot be combined with the aid in support of the hiring of older unemployed people.
Who is concerned
The creation of a position to employ a long-term unemployed person, and the related financial aid, may only be applied for by the following employers:
- the Government;
- communal authorities and associations of communes;
- public establishments;
- societal-impact companies whose share capital is made up entirely (100 %) of impact shares;
- non-profit associations;
- foundations.
Prerequisites
The employment contract offered to the job seeker must be:
- a permanent contract;
- for a new position.
If an existing job has become vacant and can be filled through the normal hiring process, the employer may not create a new work-integration job for a long-term unemployed person.
The jobseeker must be:
- at least 30 years old;
- registered with the ADEM and have been unemployed for at least 12 months.
Preliminary steps
Eligible employers are required to have sought the opinion of their staff delegation regarding the creation of a new work-integration job.
How to proceed
Initial application
Employers are asked to contact the ADEM and file an application for aid to create a work-integration job for a long-term unemployed person.
Quarterly declarations
To obtain refunds of their salary-related costs, the employer must file a declaration of claim with the ADEM every 3 months.
Required supporting documents for the quarterly declarations
The quarterly declarations must be accompanied by pay slips for the months concerned and the employee's certificate of affiliation to the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS).
When submitting the first quarterly declaration, a copy of the employment contract must also be submitted.
Amount and duration of aid
For long-term unemployed persons aged 30 to 49, the aid is granted for the first 3 consecutive years following the hiring of the employee under a permanent employment contract (contrat de travail à durée indéterminée - CDI).
The Employment Fund (Fonds pour l’emploi) refunds the salary-related costs actually incurred, as follows:
- 100 % of the salary-related costs for the 1st year;
- 80 % of the salary-related costs for the 2nd year;
- 60 % of the salary-related costs for the 3rd year.
For unemployed people aged 50 or over, the Employment Fund refunds 100 % of the salary-related costs actually incurred until the day the employee begins receiving an old-age pension.
The amount of the refund for salary-related costs is capped at 150 % of the social minimum wage for unskilled workers.
The employer will be required to repay the Employment Fund 75 % of the refunded amounts they received if the permanent employment contract is terminated before the end of the 6th year of the contract, for reasons unrelated to the employee.
If one of the parties unilaterally terminates the employment contract during the trial period, the employer will not be bound by the obligation to repay the Employment Fund.
End of the financial aid
Refunds of salary-related costs automatically cease:
- at the end of the period for which the financial aid is granted; or
- if the employee is dismissed or resigns.
Online services and forms
Who to contact
-
National Employment Agency (ADEM) Employer Services
- Address:
- 19, rue de Bitbourg L-1273 Luxembourg Luxembourg
- Phone:
- (+352) 247 88 000
- Email address:
- info@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
Related procedures and links
Procedures
Links
Further information
on the Employment Portal (ADEM)
Tools
Consult the current social parameters.
Legal references
- Code du Travail, Livre V, Titre IV, Chapitre 1er
-
Règlement grand-ducal du 15 décembre 2017
portant application des dispositions relatives aux emplois d’insertion prévues aux articles L.541-5 et L.541-6 du Code du travail
