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Factsheet for case LU-2020-30/1197 – measures in Luxembourg

Employment reintegration contract for disadvantaged workers

Contrat de réinsertion-emploi (CRE)

Country Luxembourg , applies nationwide
Time period Temporary, 24 July 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
Author Patrick Thill (LISER) and Eurofound
Case created 28 September 2020 (updated 27 November 2020)

Background information

In order to help the most vulnerable populations find employment, i.e. jobseekers aged 45 or over, employees with reduced work capacity and disabled workers, the National Employment Agency (Agence pour le développement de l'emploi – ADEM) can, under certain circumstances, propose that an employment reintegration contract is entered into with an employer.

The law of July 24, 2020 provides a temporary exemption from this measure (decrease the age at 30 years old and over).

Content of measure

During the period from 24 July 2020 until 31 December 2021, a job reintegration contract, comprising alternating periods of practical training and theoretical training, can be offered to jobseekers aged at least 30 or in professional redeployment or having the status of disabled employee and registered with ADEM for at least one month.

When hiring a jobseeker aged between 30 and 45 years, a share corresponding to 50% of the minimum social wage for unskilled employees is paid by the employer to the Employment Fund.

In case of hiring a jobseeker who is:

  • at least 45 years old,
  • in external reclassification
  • having the status of disabled employee or
  • whose gender is under-represented in the business sector,

The company's participation is reduced to 35% of the compensation received by the jobseeker. The employment reintegration contract is concluded for a duration of 12 months. The employer appoints a mentor who is responsible for assisting and guiding the job seeker throughout the employment reintegration contract. In the first month following the signing of the contract, the company, the mentor and the job seeker prepare a training plan, one copy of which must be sent to the ADEM's Employer services.

Use of measure

In 2018, 137 people benefited from this measure. They were 168 in 2019 (i.e. +22.6%).

Target groups

Workers Businesses Citizens
Unemployed
Other groups of workers
Disabled workers
Female workers
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

no information in the source about social partners' involvement

Views and reactions

Unfortunately, no answer to our email about this question.

Sources

Citation

Eurofound (2020), Employment reintegration contract for disadvantaged workers, case LU-2020-30/1197 (measures in Luxembourg), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.