Applying for unemployment benefits as an employee

If you meet the eligibility criteria for unemployment benefits, live in Luxembourg and have been employed there, you may be eligible for full unemployment benefits.

Prerequisites

To qualify for full unemployment benefits, you must:

• be involuntarily unemployed — this excludes termination by mutual agreement, unjustified resignation and dismissal for serious misconduct;
• be registered as a jobseeker with the Employment Development Agency (ADEM) and submit a claim for full unemployment benefits;
• be between 16 and 64 years of age;
• be able to work, available on the labour market and willing to accept any suitable job. Suitability is defined by Grand Ducal regulation and takes account of pay, physical and mental fitness, daily commuting time, family situation, working conditions and similar criteria;
• have worked for at least 182 days — at least 16 hours per week — under one or more employment contracts in the 12 months (or longer, depending on the case) before registering with ADEM; 
• have your domicile in Luxembourg (this condition does not apply to jobseekers with external redeployment status).

You must also not, in principle:

• act 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 do hold such a position or a business permit, you can still receive financial support by stating in your application that you are entitled to it under Article L.521‑18 of the Labour Code (secondary activity or other income). Any earnings above a specified threshold from these activities will be deducted from your unemployment benefits.

Cases of dismissal or resignation

If you were dismissed for serious misconduct or resigned, you are generally not entitled to full unemployment benefits.

You can, however, apply to the competent labour court for provisional benefits in summary proceedings in the following cases:

• dismissal for serious misconduct; 
• resignation due to sexual harassment; 
• resignation for serious reasons as a result of acts or behaviour by the employer.

In such cases, financial support is initially granted for 182 days and may be extended up to a maximum of 364 days.

Provisional entitlement only exists if an unfair dismissal action has been filed with the labour court.

If you lose the main proceedings, you must repay all unemployment benefits received to the Employment Fund. The same applies if you withdraw the proceedings yourself. Where the withdrawal is by mutual agreement, you and your former employer each repay half.

What you need to do

Once you have registered with ADEM as a jobseeker and meet the eligibility criteria for full unemployment benefits, you will receive a letter inviting you to complete your application via MyGuichet.lu.

If you receive no reply within eight days of registering, or if you need assistance, the ADEM Contact Centre can be reached by telephone on (+352) 247‑88888. They can answer your questions and show you the best way to complete this formality.

To avoid delaying the start of your benefits, submit your claim as soon as possible and no later than four weeks after losing your job.

Once your application has been submitted via MyGuichet.lu, a competent officer will examine it and follow up your file.

Documents required for the MyGuichet application

• a bank account identification document (RIB) showing your IBAN, the BIC/SWIFT code and the name of the bank; 
• if you have dependent children, proof of family allowance (e.g. a copy of a credit advice or a certificate from the Caisse pour l’avenir des enfants) or a copy of the scholarship agreement; 
• a copy of your last employment contract; 
• if relevant, a copy of the dismissal letter, resignation or mutual termination of the employment contract.

Duration of benefits

Unemployed people who meet the admission criteria are covered for a period corresponding to the duration of their employment (calculated in whole months) in the reference period. The benefits can be paid for up to twelve months.

Example:

If the person worked for six months and 20 days in the twelve months before registering as a jobseeker, the benefits will be paid for seven months.

Amount of benefits

The amount of your unemployment benefits is calculated in accordance with Article L.521‑14 of the Labour Code.

They generally amount to:

• 80 % of your gross salary during the three months preceding unemployment. In some cases this reference period may be extended to six months; 
• 85 % if you have one or more children for whom you are entitled to a tax allowance.

The maximum benefits are capped at:

• 2.5 times the social minimum wage in the first six months; 
• twice the social minimum wage in the subsequent months; 
• 1.5 times the social minimum wage if the benefits are extended.

When do the unemployment benefits cease?

Benefits are no longer paid:

• once the maximum period of payment has been reached; 
• if any of the eligibility conditions cease to be met; 
• when you reach the age of 65; 
• if you unjustifiably refuse a suitable job; 
• if you unjustifiably refuse to attend training, courses or public‑utility work assigned by ADEM; 
• if the unemployed person makes no or too little effort to actively seek an appropriate job.

Obligations

To receive your benefits, you must:

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

In special circumstances — such as illness, a stay abroad, absence for personal reasons, enrolment on a training course, or taking on part‑time or temporary work — you must inform your ADEM adviser as follows:

• submit a certificate of incapacity in the event of illness; 
• sign and have approved a leave request before going abroad or taking time off; 
• present a copy of the temporary or part‑time employment contract; 
• provide proof of enrolment for a training course.

If you do not attend ADEM without a valid reason, sanctions may apply: you may lose your benefits for seven days, up to 30 days in case of repeat offences, or have them withdrawn altogether.

If you have any questions, please contact the ADEM Contact Centre on (+352) 247‑88888.