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
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.
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.
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.
Possible reconduction de 6 mois avec le même employeur ou un autre sous certaines conditions.
En cas de prolongation du CIE, le Fonds pour l'emploi rembourse à l'employeur, pour la durée de la prolongation (maximum 6 mois) :
- 30 % de l'indemnité de base ;
- l'intégralité de la part patronale des charges sociales.
Employers who hire the beneficiary of a CIE under a permanent employment contract without a trial period may apply to ADEM for the reimbursement of social security contributions (employer’s share). The reimbursemnt of social security contributions is only paid:
- 12 months after the young jobseeker has been hired;
- provided the employment contract is still valid and not terminated when the application for reimbursement is submitted.
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.