Applying for unemployment benefits when self-employed

If you are forced to stop your professional activity through no fault of your own, you may, under certain conditions, be entitled to financial support to offset the loss of your main or only source of income. This makes you a recipient of unemployment benefits.

Prerequisites

To qualify for full unemployment benefits, you must:

• be involuntarily unemployed; terminations by mutual agreement, unjustified resignations and dismissals for serious misconduct are excluded;
• register as a jobseeker with the Employment Development Agency (ADEM) within six months of stopping your activity and apply for full unemployment benefits; 

• be at least 16 years old and not more than 64; 
• be fit for work, available on the labour market and willing to accept any suitable job. Suitability is defined by Grand Ducal regulation and takes into account pay, physical and mental fitness, daily travel time, family situation and working conditions; 
• have been compulsorily affiliated with the Luxembourg social security bodies for at least two years, either as an employee or as a self‑employed worker; 
• have worked as a self‑employed person for at least six months before lodging your claim with ADEM; 
• have carried out your last self‑employed activity on Luxembourg territory.

You should, in principle, not:

• serve as a manager, director, managing director or person in charge of the day‑to‑day management of a company; 
• hold a business permit.

If you hold such a position or permit that is not directly related to the activity for which you are claiming unemployment benefits, you can still receive support by stating in your claim that you are entitled to it under Article L.521‑18 of the Labour Code (secondary occupation or other income). Any earnings from this activity above a specified threshold will be deducted from your benefits.

Procedure

After registering as a jobseeker and once you meet the eligibility conditions, you will receive a letter inviting you to complete your claim via MyGuichet.lu.

If you do not hear back within eight days of registering, or if you need help, ADEM’s Contact Centre is available on (+352) 247‑88888 to answer your questions and direct you to the right way of completing your claim.

Once your application is submitted via MyGuichet.lu, a competent officer will assess it and monitor your file.

Documents required for the MyGuichet.lu claim

• a bank identity document (RIB) indicating your account number in IBAN format, the BIC/SWIFT code and the name of the bank; 
• if you have one or more dependent children, proof of family allowances (such as a copy of a credit advice or a certificate from the Caisse pour l’avenir des enfants) or a copy of the AideFi grant agreement; 
• a detailed explanatory letter setting out why you stopped your activity; 
• a certificate of income for the previous two years; 
• a statement of your account with the Joint Social Security Centre (CCSS) / annual statement for the current year.

Duration of benefits

The compensation period is normally 365 days. It can be extended in the following cases:

Amount of benefits

When you are admitted to unemployment benefits, you are entitled to:

• an allowance equal to 80 % of the income used as the contributory basis for your pension fund in the last two financial years, provided you have paid your social security contributions; or
• 80 % of the social minimum wage for unskilled employees if you have not paid your social security contributions.

The rate rises to 85 % if you have one or more children for whom you receive the tax moderation.

Your allowance may not be less than 80 % nor more than 2.5 times the social minimum wage for unskilled workers. The maximum amount is:

• 2.5 times the social minimum wage during the first six months;
• twice the social minimum wage for the following months until the end of the allowance;
• 1.5 times the social minimum wage if the allowance is extended.

When do the unemployment benefits cease?

Unemployment benefits are no longer paid:

• once the maximum duration of payment has been reached; 
• when one or more of the eligibility conditions are no longer met; 
• when you are over 65 years of age; 
• if you unjustifiably refuse a suitable job; 
• if you unjustifiably refuse to take part in courses, training or public‑utility work assigned by ADEM.

Obligations

To receive your benefits, you must:

• attend the appointments scheduled by your ADEM adviser; 
• inform your adviser immediately of any change in your personal situation.

In certain circumstances – such as illness, travel abroad, absence for personal reasons, taking part in training, or accepting part‑time or temporary work – you must notify your adviser and provide the following evidence:

• a certificate of incapacity in case of illness; 
• a leave request signed and approved before your departure for a stay abroad or absence; 
• a copy of the contract for any part‑time or temporary work; 
• a certificate of enrolment for a training course.

If you fail to attend ADEM without a valid reason, sanctions may apply: your benefits may be suspended for seven days, for up to 30 days if repeated, or you may be removed from the list of benefit recipients.