Re-employment support
Last update
Following the loss of their job in Luxembourg, workers who accept a new position in Luxembourg with a lower salary may benefit from re-employment support (aide au réemploi). Re-employment support guarantees its recipient a level of pay amounting to 90 % of their previous salary for a period of 48 continuous calendar months from the date they begin their new job.
Initial applications must be submitted to the National Employment Agency (Agence pour le développement de l'emploi - ADEM).
Who is concerned
The following may claim re-employment support: workers resident in Luxembourg and cross-border workers from neighbouring countries, registered in Luxembourg and returning to a job in Luxembourg with a salary lower than that of their previous position.
Temporary re-employment support may be granted to workers who:
- have voluntarily resigned from a company experiencing structural or situational economic difficulties;
- have been dismissed (or are about to be dismissed) for economic reasons;
- have been dismissed as part of business recovery, reorganisation or restructuring measures;
- have lost their job as a result of their employer filing for bankruptcy or being placed in compulsory liquidation;
- have lost their job due to their employer's physical incapacitation or death;
- were transferred as part of a temporary redistribution of workers under a job protection plan approved by the Minister of Labour.
Furthermore, the business where they were originally employed must have been declared eligible for re-employment support by the Minister, who will rule on the matter at the request of any interested party.
Unemployed persons receiving unemployment benefits may also, in certain circumstances, claim temporary re-employment support.
Prerequisites
Conditions under which a business is eligible for re-employment support
For the minister to be able to declare the employee's original company eligible for re-employment support, the following conditions must be met:
- the company director must have conducted the notification and consultation procedures required for collective dismissals; or
- the company must be placed under controlled management, or other bankruptcy-prevention measures; or
- the company must be in the process of liquidation; or
- the company must have devised a job protection plan; or
- the company must have been declared bankrupt or placed in compulsory liquidation; or
- the company must have applied for and obtained subsidies for the purpose of compensating the partially unemployed.
Condition linked to the hired employee
The employee hired in their new company must meet several conditions in order to be eligible for re-employment support:
- they must have been working legally, under an employment contract, for the 24 months immediately prior to leaving the company (which must have a fixed office in Luxembourg) eligible for re-employment support;
- they must be insured as an employee with the Luxembourg social security institutions;
- they must hold a certificate of vocational aptitude issued by the occupational health practitioner who performed their pre-employment medical examination.
Finally, the new employment contract with a company having a fixed office in Luxembourg must be:
- a permanent employment contract (contrat à durée indéterminée - CDI);
- a fixed-term contract (contrat à durée déterminée - CDD) for a minimum of 18 months;
- a fixed-term contract to replace an employee on parental leave (specified in the contract).
Condition linked to the hired unemployed person
The unemployed person must:
- be 45 years old at least (i.e. as of the day after their 45th birthday);
- have been registered with the ADEM for at least one month;
- have worked legally and without interruption as an employee in Luxembourg for the 24 months prior to registering with the ADEM;
- be insured as an employee with the Luxembourg social security institutions;
- have been declared fit and able to work by the occupational health services.
The vacancy must have been declared to the ADEM beforehand by the employer.
Disqualifying conditions
The employee is ineligible for re-employment support if they:
- are receiving an early old-age pension, an old-age pension, a tideover allowance, a professional tideover allowance or a full annuity;
- are the holder of the business permit for the company where they are employed;
- hold the position of manager, director, deputy director or officer in charge of the day-to-day management of the company or not-for-profit organisation (ASBL) where they are employed;
- have an equity interest in the unlisted company where they are employed;
- have a spouse, registered partner, direct relative or relative by marriage up to the second degree who:
- holds the majority of the capital of the company where the worker is employed; or
- has, at any given time in the 2 years prior to the end of the worker's employment contract, held the majority of shares or capital of the company where the worker is employed;
- has already worked for the company or social and economic organisation in the 5 years preceding the contract for which the temporary re-employment support is sought.
Deadlines
The application must be submitted by the employee within 3 months of taking up the job with the new employer.
Beyond that date, they can no longer claim re-employment support.
How to proceed
Submitting the application
An employee who wishes to claim re-employment support must, as soon as possible, file a request with the Ministry of Labour to have their former employer declared eligible for such support, unless the conditions for unemployed persons on benefits are met.
Re-employment support is not granted retroactively.
To do so, the employee must fill in and return the re-employment support application form. The decision as to whether or not re-employment support is granted is made by ADEM's director.
- If re-employment support has already been approved, the employee must fill in and submit a monthly declaration for re-employment support.
Depending on the employee's previous situation (redundancy for economic reasons, collective redundancy, bankruptcy of the employer, etc.), a section of the form (Form 2) must be filled in by the former employer or the receiver in the case of bankruptcy.
Supporting documents
The application for temporary re-employment support must be accompanied by a number of supporting documents, which may differ depending on the newly hired employee's situation.
New job found following redundancy for economic reasons
The following supporting documents must be included:
- copies of the employee's payslips for the past 12 months;
- if applicable, a copy of the payslip for the 13th month pay and/or bonus;
- a copy of the dismissal letter, making mention of the duration of the notice period;
- a bank account identification document.
- a copy of the new employment contract;
- the certificate of fitness for work issued by the relevant occupational health practitioner or, where this is not yet available, confirmation that an appointment has been set up for the examination;
- for non-residents only: proof that they have not been registered as unemployed or that they are not receiving unemployment benefit.
New job found following a period of unemployment, receiving unemployment benefits
The following supporting documents must be included:
- a copy of the new employment contract;
- the certificate of fitness for work issued by the relevant occupational health practitioner or, where this is not yet available, confirmation that an appointment has been set up for the examination;
- a bank account identification document;
- for non-residents only:
- a copy of their U1 certificate;
- a copy of their last 3 monthly payslips (full months) from their previous employer;
- proof of payment issued by the organisation which pays the unemployment benefit, covering the whole period of unemployment;
- proof of deregistration from the unemployment register in their country of residence.
Amount of aid
Re-employment support is calculated to ensure that the employee's maximum overall remuneration in their new job amounts to 90 % of their previous salary.
However, the amount of re-employment support paid may not exceed 50 % of the gross salary paid by the new employer.
If the employee finds a job with fewer weekly working hours than in their previous job, then the re-employment support is reduced in proportion to the actual duration of work.
Determining previous pay
For unemployed persons on benefits, their previous pay is calculated on the basis of the gross salary which was used to calculate the gross amount of unemployment benefit.
For other employees, the salary received before their new job is calculated on the basis of the gross monthly salary actually received by the employee over the 12 months immediately prior to the termination of their previous employment contract.
In calculating the salary, the following are taken into account:
- sick pay;
- standard incentives and extras;
- the bonus and the 13th month (to be considered as a 12th month).
The following are not included in the calculation:
- overtime pay;
- variable elements;
- allowances for incidental expenses;
- benefits in kind liable for social security contributions.
In all cases, when calculating re-employment support, the applicant's previous salary is capped at 350 % of the social minimum wage for unskilled workers 18 or over.
In addition, income from other salaried jobs or from self-employment will be deducted in determining the amount of temporary re-employment support to be paid.
Determining new pay
The new pay is taken into account in its entirety (overtime pay, pay rises, etc.).
Period of benefit entitlement
The temporary re-employment support will be paid, at most, for the first 48 months of the new job.
However, the support will only be paid for the duration of employment by the former employer.
The re-employment support is paid monthly, and can only be paid over a continuous period; it cannot be interrupted.
Notably, re-employment support ceases to be paid:
- when the employee receives a salary equal to or greater than 90 % of their previous salary (including allowances, overtime pay and bonuses);
- during full-time parental leave;
- during unpaid leave;
- if the employee loses their job. In the event of loss of employment entitling the worker to the full unemployment benefit, the amount of re-employment support is taken into account when calculating the unemployment benefit, as is the pay received from the last employer (for residents only).
When payments are stopped, all outstanding monthly payments are irreversibly lost.
If the worker returns to employed work, payments will start again if their new salary is less than 90 % of their former salary.
If the worker changes employers, they can continue to receive re-employment support.
Online services and forms
Who to contact
-
National Employment Agency (ADEM)
- Address:
-
19, rue de Bitbourg
L-1273
Luxembourg
Luxembourg
B.P. 2208, L-1022 Luxembourg
- Phone:
- (+352) 247 88 000
- Email address:
- info@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
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
-
National Employment Agency (ADEM) Medical Commission
- Address:
- 19, rue de Bitbourg L-1273 Luxembourg-Hamm Luxembourg
- Phone:
- (+352) 247 88 888
- Email address:
- commissionmedicale@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
National Employment Agency (ADEM) Occupational Counselling and Redeployment Panel
- Address:
-
19, rue de Bitbourg
L-1273
Luxembourg-Hamm
Luxembourg
B.P. 2208, L-1022 Luxembourg
- Phone:
-
(+352) 247 88 000
for employers
- Email address:
- Info.cor@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
National Employment Agency (ADEM) Department for Workers with Reduced Working Capacity
- Address:
- 19, rue de Bitburg L-1273 Luxembourg Luxembourg
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 247 85 402
- Email address:
- info.tcr@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
National Employment Agency (ADEM) Disability and Redeployment Department
- Address:
-
19, rue de Bitbourg
L-1273
Luxembourg
Luxembourg
B.P. 2208 L-1022 Luxembourg
- Phone:
-
(+352) 247 88 888
for jobseekers
- Phone:
-
(+352) 247 88 000
for employers
- Email address:
- commissionmedicale@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
National Employment Agency (ADEM) Career Guidance - Luxembourg City - Maison de l'orientation (Educational and Vocational Guidance Centre)
- Address:
-
29, rue Aldringen
L-1118
Luxembourg
Luxembourg
B.P. L-2926 Luxembourg
- Phone:
- (+352) 247 85 387
- Phone:
- (+352) 247 85 480
- Fax:
- (+352) 40 61 39
- Email address:
- info@m-o.lu
Closed ⋅ Opens Monday à 8h00
- Sunday:
- Closed
- Monday:
- 8h00 à 12h00, 13h00 à 17h00
- Tuesday:
- 8h00 à 12h00, 13h00 à 17h00
- Wednesday:
- 8h00 à 12h00, 13h00 à 17h00
- Thursday:
- 8h00 à 12h00, 13h00 à 17h00
- Friday:
- 8h00 à 12h00, 13h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Diekirch Agency
- Address:
-
2, rue de Clairefontaine
L-9220
Diekirch
Luxembourg
B.P. 7 L-9201 Diekirch
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 80 26 35
- Email address:
- info@adem.etat.lu
Closed ⋅ Opens Monday à 8h00
- Sunday:
- Closed
- Monday:
- 8h00 à 12h00, 13h00 à 17h00
- Tuesday:
- 8h00 à 12h00, 13h00 à 17h00
- Wednesday:
- 8h00 à 12h00, 13h00 à 17h00
- Thursday:
- 8h00 à 12h00, 13h00 à 17h00
- Friday:
- 8h00 à 12h00, 13h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Career Guidance - Diekirch - Maison de l'orientation (Educational and Vocational Guidance Centre)
- Address:
-
7, avenue de la Gare
L-9233
Diekirch
Luxembourg
B.P. 7 L-9201 Diekirch
- Email address:
- info@m-o.lu
-
National Employment Agency (ADEM) Differdange Agency
- Address:
-
23, Grand-rue
L-4575
Differdange
Luxembourg
B.P. 5 L-4501 Differdange
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 247 75 351
- Email address:
- info@adem.etat.lu
Closed ⋅ Opens Monday à 8h30
- Sunday:
- Closed
- Monday:
- 8h30 à 11h30, 14h00 à 17h00
- Tuesday:
- 8h30 à 11h30, 14h00 à 17h00
- Wednesday:
- 8h30 à 11h30, 14h00 à 17h00
- Thursday:
- 8h30 à 11h30, 14h00 à 17h00
- Friday:
- 8h30 à 11h30, 14h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Dudelange Agency
- Address:
- 56, rue du Parc L-3542 Dudelange Luxembourg
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 247 - 75 471
- Email address:
- info@adem.etat.lu
Closed ⋅ Opens Monday à 8h00
- Sunday:
- Closed
- Monday:
- 8h00 à 12h00, 13h00 à 17h00
- Tuesday:
- 8h00 à 12h00, 13h00 à 17h00
- Wednesday:
- 8h00 à 12h00, 13h00 à 17h00
- Thursday:
- 8h00 à 12h00, 13h00 à 17h00
- Friday:
- 8h00 à 12h00, 13h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Esch-sur-Alzette Agency
- Address:
-
1, boulevard Porte de France
L-4360
Esch-sur-Alzette
Luxembourg
B.P. 289, L-4003 Esch-sur-Alzette
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 54 10 58
- Email address:
- info@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
Closed ⋅ Opens Monday à 8h30
- Sunday:
- Closed
- Monday:
- 8h30 à 11h30, 14h00 à 17h00
- Tuesday:
- 8h30 à 11h30, 14h00 à 17h00
- Wednesday:
- 8h30 à 11h30, 14h00 à 17h00
- Thursday:
- 8h30 à 11h30, 14h00 à 17h00
- Friday:
- 8h30 à 11h30, 14h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Wasserbillig Agency
- Address:
-
44, esplanade de la Moselle
L-6637
Wasserbillig
Luxembourg
B.P. 38, L-6601 Wasserbillig
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 247 75 39 1
- Email address:
- info@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
Closed ⋅ Opens Monday à 8h00
- Sunday:
- Closed
- Monday:
- 8h00 à 12h00, 13h00 à 17h00
- Tuesday:
- 8h00 à 12h00, 13h00 à 17h00
- Wednesday:
- 8h00 à 12h00, 13h00 à 17h00
- Thursday:
- 8h00 à 12h00, 13h00 à 17h00
- Friday:
- 8h00 à 12h00, 13h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Wiltz Agency
- Address:
-
20, rue Winseler
L-9577
Wiltz
Luxembourg
B.P. 57, L-9501 Wiltz
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 95 86 11
- Email address:
- info@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
Closed ⋅ Opens Monday à 8h00
- Sunday:
- Closed
- Monday:
- 8h00 à 12h00, 13h00 à 17h00
- Tuesday:
- 8h00 à 12h00, 13h00 à 17h00
- Wednesday:
- 8h00 à 12h00, 13h00 à 17h00
- Thursday:
- 8h00 à 12h00, 13h00 à 17h00
- Friday:
- 8h00 à 12h00, 13h00 à 17h00
- Saturday:
- Closed
-
National Employment Agency (ADEM) Financial Management of Support Measures - Young Persons
- Address:
-
10, rue Bender
L-1229
Luxembourg
Luxembourg
B.P. 2208 L-1022 Luxembourg
- Fax:
- (+352) 29 65 90
- Email address:
- info.jeune@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
-
National Employment Agency (ADEM) Employer Services – 'Third-Country Nationals' unit
- Address:
- 19, rue de Bitbourg L-1273 Luxembourg-Hamm Luxembourg
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 247 90 41 0
- Email address:
- info@adem.etat.lu
-
National Employment Agency (ADEM) Job Protection Department
- Address:
-
1, boulevard Porte de France
L-4360
Esch-sur-Alzette
Luxembourg
B.P. 289, L-4003 Esch-sur-Alzette
- Phone:
- (+352) 247 88 000
- Fax:
- (+352) 40 59 88
- Email address:
- info.mai@adem.etat.lu
- Website:
- https://adem.public.lu/en.html
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Related procedures and links
Procedures
Links
Tools
Consult the current social parameters.
Legal references
- Code du Travail, Livre V, Titre IV, Chapitre 1er
-
Règlement grand-ducal modifié du 17 juin 1994
fixant les modalités et conditions d'attribution 1. des aides à la mobilité géographique; 2. d'une aide au réemploi; 3. d'une aide à la création d'entreprises; 4. d'une aide à la création d'emplois d'utilité socio-économique
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