Employees who, for specific reasons, return to work in a position that is less well paid than their former position are entitled to re-employment support (aide au réemploi), the aim being to ensure their annual income is equal to 90 % of their former income, for the first 48 months in their new job.
When calculating re-employment support, the applicant's previous salary is capped at a maximum of 350 % of the social minimum wage for unskilled workers.
However, the amount of the re-employment support may not exceed half of the gross salary paid by the new employer and the financial aid will be limited to the duration of the employment relationship in the company for which the re-employment support was granted.
Who is concerned
Re-employment support is awarded to:
- Employees who have left their jobs of their own volition because the company faces economic difficulties of a structural or cyclical nature
- Employees who have been dismissed (or are about to be dismissed) for economic reasons
- Employees who have been dismissed as part of business recovery, reorganisation or restructuring measures
- Employees who have lost their job because the employer is declared bankrupt or in the event of the employer’s physical inability to continue the business or death.
The employee must have worked legally in Luxembourg under the employment contract during the twenty-four months immediately preceding his departure from the company in question.
- Jobseekers receiving unemployment benefits who are at 45 years of age, have been registered with ADEM for at least one month and have worked in Luxembourg as an employee on a continuous basis without interruption in Luxembourg during the 24 months immediately preceding their registration at ADEM. The employer must have had declared the vacant position to ADEM.
The new employment contract must be one of the following:
- 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 cover for parental leave
The application must be submitted by the employee within 3 months of returning to work, or else it will lapse.