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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case LU-2020-34/1516 Updated – measures in Luxembourg

Support for apprenticeship: a bonus for companies

Soutien à l'apprentissage: une prime pour les entreprises

Country Luxembourg , applies nationwide
Time period Temporary, 18 August 2020 – 15 July 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 30 November 2020 (updated 07 May 2021)

Background information

In the context of the current COVID-19 crisis, the Ministry of Education introduced a special grant to ensure that companies and training institutes continue to create apprenticeships for younger people in the labour market.

As the crisis has had a negative effect on many companies in Luxembourg, it has also impacted on the number of apprenticeships, and in the long run, on new jobs that are vital in the post-COVID period. The measure is a financial support measure.

Content of measure

Companies and training institutes in the private sector creating apprenticeships for young people are eligible.

Based on a request that companies must send to the Ministry of Education, the single allowance ranging from €1,500 to €5,000 takes the form of a lump sum subsidy.

  • the number of apprenticeship contracts (from 15 July 2020 onwards) and in force at the time of the request.
  • the number of new apprenticeship contracts concluded from 16 July 2020 onwards;
  • the number of apprenticeship contracts resumed following the end of the apprenticeship contract after 24 June 2020;
  • the average annual number of apprentices admitted to the course.

Eligible companies must have the right to train on the day of the request and proof that they concluded the apprenticeship contract and of the completion of the trial period. Eligible companies must also present a certificate of affiliation to the Joint Social Security Center.

Updates

The following updates to this measure have been made after it came into effect.

21 December 2020

The Department for Education, Children and Young People has extended access to the one-off apprenticeship premium until 15 July 2021. It has also clarified the purpose of this premium:

  • to mitigate the risk of a reduction in the number of apprenticeship positions
  • to ensure the integration of young people in vocational training and to support them in the transition to working life
  • to increase the number of apprenticeship positions to meet future needs for skilled labour
  • support training organisations
  • promoting the takeover of apprenticeship contracts terminated due to the health crisis

Use of measure

No data has been disclosed.

Target groups

Workers Businesses Citizens
Other groups of workers
Youth (18-25) in employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Company / Companies
National funds

Social partners

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

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

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

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The measure has been discussed and agreed upon by social partners during a session of the National Conjuncture Committee chaired by the Ministry of the Economy.

Views and reactions

Trade unions and employer associations were supportive of the measure and no elements of discontent could have been identified.

Sources

Citation

Eurofound (2020), Support for apprenticeship: a bonus for companies, case LU-2020-34/1516 (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.