Reintegration of long-term unemployed jobseekers

Objective

The Luxembourg State can, under certain circumstances, grant financial aid for the creation of new integration jobs (under a permanent employment contract) for long-term unemployed jobseekers.

Beneficiaries

The creation of new integration jobs for long-term unemployed jobseekers, may only be applied for by the following employers:

  • Government
  • municipalities and communal associations
  • public institutions
  • societal-impact companies whose share capital is made up entirely (100%) of impact shares
  • non-profit associations (asbl)
  • foundations

Jobseekers having completed a temporary paid occupation (OTI), an employment support contract (CAE) or the Assistant pool are also eligible.

Conditions

  1. Jobseekers eligible for integration jobs must be
    • at least 30 years of age
    • registered with ADEM and unemployed for at least 12 months.

  2. The open-ended employment contract must be concluded for a new post and not for an existing vacant post for which a possibility of replacement through the normal recruitment procedure exists.

  3. The employer must seek the opinion of the staff delegation on the creation of a new integration job.

Financial aid

The financial aid is granted by the Minister on the advice of ADEM and is adjusted according to the age of the person hired

Financial aid for the hiring of long-term unemployed between 30 and 49 years of age is granted to the employer for the first three consecutive years of employment following the conclusion of an open-ended employment contract).

The Employment Fund reimburses the employer for the actual salary costs incurred:

  • 100% of salary costs for the first year
  • 80% of salary costs for the second year
  • 60% of salary costs for the third year.

For hiring unemployed jobseekers who are 50-years and older, the Employment Fund reimburses 100% of the actual salary costs incurred. The financial aid will be paid until the employee’s retirement.

Important

When determining the amount of the reimbursement, the salary costs incurred shall be capped at 150% of the social minimum wage for unskilled employees.

If the employer terminates the employment contract before the end of the sixth year for reasons not inherent to the employee, the employer is obliged to return to the Employment Fund, 75% of reimbursements received.

If one of the parties unilaterally terminates the employment contract during the probationary period, no obligation of reimbursement can be imposed on the employer.

How to proceed

Employers wishing to provide new integration jobs are asked to contact ADEM and fill in the form « Création d’un emploi d’insertion pour chômeur de longue durée »

The reimbursement of salary costs will be made on the basis of quarterly statements to be sent to ADEM by the employer.

Legislation

L.541-5 et L.541-6 du Code du Travail

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