Receiving unemployment benefits during the creation or takeover of a business

An indemnified jobseeker who receives unemployment benefits and is in the process of creating or taking over a company in Luxembourg may be exempted, with the agreement of the ADEM, from the obligation to accept any appropriate employment for a maximum period of 6 months.


Indemnified jJob seekers receiving unemployment benefits, in the process of holding the majority of the capital in a company to be created or to take over a company on Luxembourg territory. The progress of the project is monitored by ADEM or by an expert appointed by ADEM.

Terms and Conditions

The request for exemption must be made and approved at the latest before the end of the 6th month of the unemployment benefit. If the period of indemnification remaining at the time of the agreement is less than 6 months, it may be extended for the remaining exemption period.

It must be accompanied by a business plan, a financial plan and a certificate from the competent minister that the conditions for issuing an establishment permit have been met.

The person concerned may not hold and has not previously held any shares in the company in which he or she will acquire a controlling interest.

If the activity generates a profit exceeding the deductible of 10% of the salary used as a basis for calculating unemployment benefit during this business creation or takeover, this amount will be deducted from the unemployment benefits received and will be refundable by the jobseeker receiving compensation.

The payment of unemployment benefits stops at the end of the exemption period.

Legal basis (only in French)

Art. L.521-9 §5 du Code du travail

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