The employment initiation contract (contrat d'initiation à l'emploi - CIE) has replaced the work insertion contract and the temporary auxiliary contract. The objective of the CIE is to ensure that its beneficiary receives practical training during working hours in order to facilitate his integration into the employment market.
The employment initiation contract is not subject to the same provisions as a traditional employment contract.
Who is concernedAny person or business (called ' promoteur') wishing to offer a real on-the-job training to a young jobseekermay resort to a CIE.
An employer who uses a CIE must be able to offer the young person:
- either real job prospects at the end of the contract;
- or better employability, thereby improving the young person's job prospects on the job market.
They must inform and consult with the following entities regarding the conclusion of the CIE:
- the staff delegation;
- the equal opportunities officer;
- the joint works committee at least once a year, if applicable.
The beneficiary of the CIE must be:
- less than 30 years old;
- and registered with the National Employment Agency (Agence pour le développement de l'emploi - ADEM) as a jobseeker for at least 3 months. Under certain conditions, the ADEM can make an exception to the registration duration for young jobseekers who are waiting for an apprenticeship contract to be concluded.
How to proceed
Recruiting a candidate
In order to hire a young jobseeker via a CIE, the employer must submit a declaration of vacant position to the ADEM, stating:
- their wish to hire a jobseeker via a CIE;
- a description of the tasks to be accomplished;
- the profile of the desired candidate (education, experience and skills required).
If jobseekers fitting the profile are available, the ADEM will propose those candidates to the employer.
Signing a contract
After the employer has chosen a candidate, the ADEM will draw up an employment initiation contract which must be signed in 3 copies by:
- the ADEM employment officer for young people;
- the employer (promoter);
- the beneficiary of the CIE.
Duration of a CIE
The employment initiation contract is concluded for a duration of 12 months.
However, the director of the ADEM may extend the employment initiation contract for a maximum duration of 6 months upon a justified request by the employer. The application for extension must be submitted at least 1 month before the initial end of the employment initiation contract.
At the end of the contract, the director of the ADEM can authorise the conclusion of a new CIE with a different employer upon a justified request of said employer.
The employer is required to register the employee with the social security by submitting a declaration of start of employment.
Young people benefiting from a CIE are entitled to the holiday scheme applicable in the business where they work.
Role of the employer
The employer must appoint a mentor in the company.
The mentor's role is to assist and guide the beneficiary of the CIE throughout the contract period.
The ADEM employment officer for young people may invite the beneficiaries to take part in training or information sessions.
By mutual consent with the beneficiary of the CIE, the mentor must inform the ADEM of the skills and skill deficiencies noted, as well as the progress to be made by the beneficiary of the CIE during the contract period.
Within one month of the start of the working relationship the employer must:
- set up a training plan together with the beneficiary of the CIE and his mentor;
- send a copy of the training plan to the ADEM employment officer concerned as soon as possible.
The employer may provide theoretical training to the young beneficiary of the CIE during working hours.
Depending on the job integration course planned for the young jobseeker and his level of training, the employer may also offer him training courses prepared by himself or by public or private organisations and institutions who organise trainings.
The employer must collaborate with the ADEM to carry out evaluations of the beneficiary of the CIE 6 months after the beginning of the CIE and 8 weeks before the end of the contract, regardless of whether the contract was extended or not.
In any case, the employer must allow the young jobseeker to:
- fulfill his obligations towards the ADEM during work hours, namely with regard to job offers, meetings and training courses;
- and to attend one or more job interviews obtained on his own initiative.
The attendance of the young job seeker at a job interview must be attested by a certificate of attendance signed by the prospective employer. The ADEM provides a form to this end.
The certificate has to be:
- given to the employer, and;
- a copy must be sent to the ADEM employment officer for young people.
Remuneration and subsidies
Throughout the whole contract period, the employer must pay the beneficiary of the CIE a basic remuneration of:
- 80 % of the social minimum wage for unskilled workers under 18 years of age (i.e. EUR 1,598.87 per month - index on 1 January 2017);
- 100 % of the social minimum wage for unskilled workers over 18 years of age (i.e. EUR 1,998.59 per month - index on 1 January 2017);
- 130 % of the social minimum wage for young people holding an advanced technician's certificate (BTS), a bachelor or a master's degree (i.e. EUR 2,598.16 per month as from 1 January 2017).
Beneficiaries of the CIE who received unemployment benefits that were higher than the remuneration received in the framework of the CIE are entitled to request a supplementary allowance paid by ADEM.
In order to receive the allowance, the beneficiary of the CIE must submit a monthly request on plain paper to Mme Michèle WILWERS (Financial Management of Support Measures - Young Persons - Gestion financière des mesures - jeunes) together with a copy of the pay slip.
The supplementary allowance is paid out for as long as the concerned party would have been entitled to unemployment benefits.
The remuneration paid to the beneficiary of the CIE is subject to the normal social security and income contributions applicable to salaries.
The employer may chose to pay a performance bonus to the beneficiary.
The employment fund reimburses the employer on a monthly basis during the 12 first months of the CIE:
- 50 % of the base salary (65 % if the person employed is of the gender which is underrepresented in the employer's sector of activity and/or in the profession concerned);
- the employer's part of social security contributions.
In the event of an extension of the CIE, the employment fund (Fonds pour l'emploi) reimburses the employer for the duration of the extension:
- 30 % of the base salary;
- the employer's full share of social security contributions.
In order to obtain the subsidy, the employer must submit a monthly declaration of claim, duly completed and accompanied by the relevant documents stated on the declaration form, to ADEM's department Financial Management of Support Measures - Young Persons (Gestion financière des mesure - jeunes).
Termination of a CIE
Expiration of a CIE
8 weeks before the end of the CIE, the ADEM and the employer must make an evaluation of the young jobseeker, regardless of whether the contract was extended or not.
Employers who do not hire the young person at the end of the CIE must:
- provide him with an attestation of employment indicating the nature and duration of the professional activities and any training received, if applicable;
- deregister him from social security.
If the employer wishes to extend the contract, he must send a justified request to ADEM's director stating the precise reasons for the extension.
The ADEM will draw up an amendment to the contract.
Businesses that are covered by a job protection plan do not need an authorisation for a contract extension.
The decision of extension will take into account the results of the evaluations and the conclusions drawn from a discussion between the beneficiary of the CIE and the ADEM.
Employment following a CIE
Employers who hire the beneficiary of a CIE under a permanent employment contract without a trial period after the CIE has ended may apply to the ADEM for the reimbursement of social security contributions paid for the person hired during the first 12 months of his contract. The reimbursed social contributions are the contributions paid by the employer (employer's share) for sickness, pension and accident insurance.
The reimbursement of the social contributions is only paid:
- 12 months after the young jobseeker has been hired;
- provided the employment contract is still valid and not terminated when the application for reimbursement is submitted.
The reimbursement of social contributions may not be cumulated with other employment programmes.
The application for reimbursement must be submitted together with a copy of the employment contract.
Terminating the contract
Employers wishing to terminate the CIE contract during the first 6 weeks of the initial contract must:
- notify the termination of the contract by registered letter giving a notice period of 8 days;
- send a copy of this notification to the ADEM.
Employers who wish to terminate the CIE contract after the first 6 weeks of the initial contract must:
- send a written request to the ADEM and wait for the approval;
- then, once the approval from the ADEM has been obtained, notify the young beneficiary of the CIE of the termination of the contract by registered letter giving a notice period of 8 days.
The termination procedure for serious misconduct is similar, whether it occurs during the first 6 weeks or later, except that the notice period of 8 days does not have to be respected.
The young person may also terminate his contract for specific and compelling reasons. He must communicate the termination of the contract to his employer by registered letter respecting an 8 days notice period.
Forms / Online services
CIE - Demande de remboursement des charges patronales après le CIE / CAE
Who to contact
Employer Services – Department for Third-Country Workers19, rue de Bitbourg
Phone : (+352) 247-88000Fax : (+352) 247-90410
Occupational Counselling and Redeployment Panel1, boulevard Porte de France
Phone : (+352) 247 - 88888Fax : (+352) 26 19 08 22
Head Office in Luxembourg City10, rue Bender
Fax : (+352) 40 61 40
Vocational Guidance Department58, boulevard Grande-Duchesse Charlotte, Place de l’Etoile / Stäreplaz
Phone : (+352) 247-854 80Fax : (+352) 40 61 39Mon.-Fri. from 8.00 to 12.00 and from 13.00 to 17.00
Financial Management of Support Measures - Young Persons10, rue Bender
Fax : (+352) 29 65 90
Department for Workers with Reduced Working Capacity19, rue de Bitburg
Phone : (+352) 247-88000Fax : (+352) 247-85402
Disability and Redeployment department19, rue de Bitbourg
Phone : (+352) 247-88 888 (job seekers) or 247-88 000 (employer)Fax : (+ 352) 247-26 19 08 22
Ministry of Labour, Employment and the Social and Solidarity Economy26, rue Zithe
Phone : (+352) 2478 6100Fax : (+352) 2478 6108
Department for the Social and Solidarity Economy26, rue Sainte- Zithe
Phone : (+352) 247-88403Fax : (+352) 247-86108