Who can benefit?
Entrerprises with less than 25 employees.
The Joint Committee (Commission mixte) has decided an external professional redeployment of an employee in accordance to article L.326-9 (6) of the Luxembourg Labour Code.
In this case, the company must pay its employee a legally stipulated lump-sum severance payment, which is based on the length of service of the employee concerned:
Employment in the enterprise of 5 years and more --> serverance payment of one monthly salary
Employment in the enterprise of 10 years or more --> severance payment of two monthly salaries
Employment in the enterprise of 15 years or more --> severance payment of three monthly salaries
Employment in the enterprise of 20 years or more --> severance payment of four monthly salaries
The length of service is assessed on the date of notification of the external professional redeployment decision.
The compensation is calculated on the basis of the gross salaries actually paid to the employee for the last twelve months immediately preceding the date of the notification of the decision for external professional redeployment.
Included in the salaries used as a basis to calculate the lump sum severance payment are: cash sickness benefits as well as current premiums and supplements, excluding salaries for overtime, gratuities and any compensation for incidental costs incurred.
This serverance payment is reimbursed by the Employment Fund upon written demand and presentation of supporting documents.
-> It is taxable but not subject to contributions.
The demand for reimbursement must be sent within 6 months from the date of notification of the decision for external professional redeployment, under penalty of foreclosure.
How to procede
Fill in the form below and send it together with the supporting documents to ADEM by postal mail or e-mail. R
- Proof of the bank transfer of the severance payment to the employee
- Last 12 payslips of the employee before the notification of the decision of external professiona redeployment
- The bank identiy statement (RIB - relevé d’identité bancaire) on which the reimbursement should be transfered.