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EU PolicyWatch

Database of national-level policy measures

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

Factsheet for measure LU-2022-3/2152 – measures in Luxembourg

New measures concerning re-employment contracts

Nouvelles mesures concernant les contrats de réinsertion-emplo

Country Luxembourg , applies nationwide
Time period Temporary, 12 January 2022 – 30 June 2022
Context COVID-19
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Patrick Thill (LISER) and Eurofound
Measure added 12 January 2022 (updated 31 January 2022)

Background information

In the context of the COVID-19 pandemic and in order to facilitate re-employment measures for jobseekers aged 30 and over, the Employment Development Agency (ADEM) can offer re-employment contracts with an employer. This extension of an existing measure consists in lowering the age of beneficiaries from 45 to 30.

This measure is temporary. As a reminder, the reintegration-employment contract is an employment measure that promotes the professional reintegration of the most vulnerable populations in the labour market. It is a contract that alternates practical and theoretical training and allows:

  • employers to pass on their experience and give a real job prospect to older jobseekers and employees with a disability or reduced work capacity
  • jobseekers to use their abilities in a practical way, while acquiring new skills.

The re-employment contract is concluded for a period of 12 months.

Content of measure

The measure concerns all jobseekers registered for at least one month with ADEM and at least 30 years old.

The employer's monthly contribution to ADEM is 50% of the minimum social wage (SSM) for unskilled employees when employing jobseekers aged between 30 and 45 years, and, 35% of the SSM for unskilled employees in the case of employment of jobseekers at least 45 years old, undergoing external reclassification, who are disabled employees or of the under-represented sex.

As a reminder, the reintegration-employment contract is an employment measure that promotes the professional reintegration of the most vulnerable populations in the labour market. It is a contract that alternates practical and theoretical training. It allows:

  • employers to pass on their experience and give a real job prospect to older jobseekers and employees with a disability or reduced work capacity
  • jobseekers to use their abilities in a practical way, while acquiring new skills

The re-employment contract is concluded for a period of 12 months.

Use of measure

Not available.

Target groups

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

Actors and funding

Actors Funding
Company / Companies
Public employment service
Employer
National funds

Social partners

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

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

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

  • No involvement
  • Main level of involvement: Unknown

Involvement

The social partners are not involved in the implementation. Only the trade unions can intervene in case of deficiencies in the implementation and upon request of the beneficiary.

Views and reactions

Trade unions are in favour of the measures taken, even if they remain incomplete, in the face of the deepening employment crisis that is affecting the European Union, but also Luxembourg, it is necessary to change the job-destroying European austerity policy and to engage in a policy of recovery and support for economic activity.

Sources

Citation

Eurofound (2022), New measures concerning re-employment contracts, measure LU-2022-3/2152 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-3_2152.html

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