Employment initiation contract (CIE)

Objective

The objective of the employment initiation contract (contrat d'initiation à l'emploi - CIE) is to ensure that a young jobseeker (beneficiary) receives practical training during working hours in order to facilitate his integration into the employment market. An employer who offers a CIE contract to a young jobseeker can benefit from the reimbursement of parts of the salary and the entire employer's share of the social security contributions

Beneficiaries

Any business (called promoter) wishing to offer a real on-the-job training to a young jobseeker may conclude a CIE.

The beneficiary of the CIE must be:

  • less than 30 years old
  • registered with ADEM for at least 3 months.

Conditions

An employer who wants to make use of a CIE must be able to offer the young person:

  • either real job prospects at the end of the contract;
  • or a better employability, thereby improving the young person's job prospects on the labour market.

Duration of the CIE: 12 months with a maximum extension period of 6 months.

In case of recruitment of personnel within 3 months after the end of the CIE, the company is obliged to give priority to the former CIE beneficiary.

Throughout the whole contract period, the employer must pay the CIE beneficiary a basic remuneration of:

  • 80 % of the social minimum wage for unskilled workers under 18 years of age
  • 100 % of the social minimum wage for unskilled workers over 18 years of age
  • 130 % of the social minimum wage for young people holding an advanced technician's certificate (BTS), a bachelor or a master degree.

Role of the employer

The employer must appoint a mentor who assists and guides the CIE beneficiary during the contract period.

By mutual consent with the CIE beneficiary, the mentor informs ADEM about the acquired skills and eventually about skill deficiencies noted, as well as the progress made by the CIE beneficiary during the contract period.

Within one month after the start of the working relationship the employer must:

  • set up a training plan together with the beneficiary of the CIE and his mentor
  • send a copy of the training plan to ADEM’s employment officer.

Subsidies

The Luxembourg employment fund reimburses the employer monthly during the 12 first months of the CIE:

  • 50 % of the base salary (65 % if the person employed is of the gender which is underrepresented in the employer's sector of activity and/or in the profession concerned) ;
  • the employer's part of social security contributions.

Under certain conditions, it is possible to extend the CIE contract for another 6 months with the same or another employer.

In case of prolongation of a CIE contract, the Luxembourg Emloyment Fund reimburses the employer (maximum 6 months) :

  • 30 % of the base salary;
  • the employer's part of social security contributions.

Recruitment of the jobseeker at the end of the CIE contract:
An employer who hires the jobseeker after the completion of the CIE contract may apply for the reimbursement of the employer's share of social security contributions for 12 months from the date of hiring, provided that the open-ended contract does not contain a trial period. he reimbursement is only due and paid 12 months after the young jobseeker is hired on an open-ended contract without a trial period and provided that the employment contract is still in force at the time of the application. This reimbursement cannot be combined with other employment measures.

How to proceed?

Employers who intend to conclude an employment initiation contract (CIE) with a jobseeker must contact ADEM's Employer service and submit a declaration of vacant position.

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