Following the loss of their employment in Luxembourg, workers who accept a new position in Luxembourg with a lower salary may benefit from re-employment support (aide au réemploi). Re-employment support guarantees its recipients a level of pay amounting to 90 % of their previous salary for 48 continuous calendar months.
Applications must be submitted to the National Employment Agency (Agence pour le développement de l'emploi - ADEM).
Carry out your procedure:
With an online service
- Cessation des relations d'emploi - attestation E301 en ligne
By downloading a form
- Aide au réemploi
- Aide au réemploi - déclaration mensuelle
- Cessation des relations d'emploi - certificat U1
* May be submitted via MyGuichet
Re-employment support is awarded to:
- salaried workers who have left their previous job voluntarily:
- if the business manager has commenced notification and consultancy procedures with respect to collective redundancies;
- if the business has requested and obtained the application of the short-time work (chômage partiel) compensatory regime;
- if the business is placed under the controlled management regime;
- if the business is being liquidated;
- if the business has concluded a job protection plan approved by the Ministry of Labour, Employment and the Social and Solidarity Economy.
- salaried workers who have been dismissed or (are about to be dismissed):
- salaried workers transferred for economic reasons to another business (in accordance with a collective agreement);
- unemployed persons receiving unemployment benefits;
- salaried workers transferred as part of a temporary lease of labour under a job protection plan approved by the Minister of Labour, Employment and the Social and Solidarity Economy. In this case, re-employment support is paid to the employer who continues to pay the salaried worker. It covers the residual cost of the temporary lease of workers, up to an amount of 90 % of their salary.
The new employment contract offered to the salaried worker must be:
- either a permanent contract (contrat à durée indéterminée - CDI);
- a temporary contract (contrat à durée déterminée - CDD) of a minimum of 18 months;
- or a temporary contract with a view to replacing a salaried worker who is on parental leave (congé parental, this must be specified in the contract).
Only a salaried activity opens the right to re-employment support. A former salaried worker who wishes to carry out a self-employed activity (independent worker) is not entitled to benefit from re-employment support.
Managers of limited liability companies (société à responsabilité limitée - SARL) are only entitled to re-employment support if their contract and working relationship prove that the technical attributions, performed under a real relationship of subordination to the company, can clearly be dissociated from the corporate mandate.
Employees who wish to receive re-employment support must send a re-employment support application to ADEM within 6 months from their professional reintegration.
If the applicant is an unemployed person receiving unemployment benefits, he/she must only complete the 1st section of the form.
Otherwise, the 2nd section of the form must be completed by his/her former employer.
The application must be accompanied by:
- a copy of the employment contract;
- and, in the case of an unemployed person from a border country receiving unemployment benefits:
- a copy of their U1 certificate (E301);
- a certificate from the competent authority in their country of residence indicating the amount of unemployment benefits received.
If re-employment support is granted, the salaried worker and the new employer must send a monthly declaration for re-employment support to ADEM each month.
Duration of financial support
Re-employment support is paid on a monthly basis for 48 continuous months from the start date of the new employment.
However, payments are stopped:
- at the moment the salaried worker is paid a salary which is equal to or higher than 90 % of their previous salary (including allowances, overtime pay and bonuses);
- during full-time parental leave (congé parental);
- during unpaid leave;
- in the event of loss of employment. If the worker is entitled to full unemployment benefits following the loss of employment, the amount of benefits paid will be calculated based on the worker's last salary plus the amount of re-employment support received.
In these cases, the monthly payments not received during that time are definitely lost. However, payment of re-employment support will resume if the person starts working again for a salary which is less than 90 % of his previous salary as long as the 48 continuous calendar months since the beginning of re-employment support have not expired.
In the event of a change of employer, the salaried worker may continue to receive re-employment support provided he/she is still within the limit of 48 continuous calendar months since re-employment support started for the first time.
Amount of financial support
Re-employment support is calculated to ensure that workers receive 90 % of their previous salary in their new job.
In other terms, the new salary plus re-employment support equals 90 % of the previous salary earned.
Re-employment support is nevertheless reduced pro rata to the number of hours worked if the working hours are lower than those worked in the previous job.