Labour market policy : qualitative report : Luxembourg 2001.
Date: 2003-11-22
Institutions: Eurostat
Subjects: Italy, data collection, employment policy, labour market, qualitative analysis, statistical method

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Labour market policy 

Qualitative report

Luxembourg 2001

3

THEME 3
Population  
and social  
conditions

E U R O P E A N
C O M M I S S I O N

 
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Luxembourg: Office for Official Publications of the European Communities, 2003

ISSN 1725-065X
ISBN 92-894-6602-2

© European Communities, 2003

TABLE OF CONTENTS

A

B

C

Introduction

Inventory of measures

Qualitative information by measure

A - Introduction

Source: Eurostat LMP database. Date of extraction:  13 November 2003

1

A - Introduction

The first publication of the Qualitative Reports of the Labour Market Policy (LMP) database is issued in 16 
volumes, one for each country participating in the LMP data collection1. The reports present qualitative information 
extracted from the database to describe, in total, 550 labour market policy measures included in the Eurostat 
database for the year 2001. The reports constitute a fundamental component of the Eurostat Labour Market Policy 
(LMP) database allowing the user to understand what lies behind the figures on expenditure and participants 
collected in the database. The qualitative reports give a succinct description of each of the labour market policy 
measures and should be considered as complementary information to the publication Labour Market Policy - 
Expenditure and Participants - Data 20012. 

The reports all have the same structure: Part A presents the Introduction, Part B includes the Inventory of measures 
- i.e. the list of all measures grouped by category, and Part C presents the main details of each measure in three 
sections: Identification, Description, and Supplementary information. The Description contains seven sub-sections: 
Aim, Beneficiaries, Action/Instrument, Financing/Support, Eligibility, Legal basis, and Recent changes. The 
Supplementary Information contains nine sub-sections covering the target groups, the conditions for participation 
and other characteristics of the measure. Together, these items summarise the qualitative information collected 
through the LMP questionnaire3. 

The measure descriptions in the LMP database are up-dated every year with the contribution of the LMP delegates 
in each country and should be published by Eurostat every 2 years. They are also available as a chapter of the 
Basic Information Reports (BIRs) produced by the European Employment Observatory4. 

1  The reports are issued primarily in English but French and German versions are also available on request. Eurostat 
makes every effort to ensure that measure descriptions entered in one language are updated in the other two languages but 
the alignment of translations cannot be guaranteed. Bearing this in mind, the preferred language for each country report is 
considered to be English for all countries except Belgium, France and Luxembourg (French); Germany and Austria 
(German). 
2  European Social Statistics - Labour market Policy - Expenditure and Participants - Data 2001. Eurostat Theme 3 - 
Population and Social conditions - 2003 Edition. 
3  Labour Market Policy Database - Methodology - April 2000. Eurostat Working Papers. 
4 The BIRs are produced on behalf of the European Employment Strategy Unit (General Directorate of Employment and 
Social Affairs) and can be accessed via http://www.eu-employment-observatory.net/en/publications/bir. 

Source: Eurostat LMP database. Date of extraction:  13 November 2003

2

B - Inventory of measures

Source: Eurostat LMP database. Date of extraction:  13 November 2003

3

Inventory of measures

Category

Measure n°/name

Luxembourg 2001

0

1

2

3

4

5

6

7

8

General PES

Intensive counselling and job-search assistance

Training

2.1

2.2

2.3

2.4

26

Training course for vocational reinsertion

Institutional training
11
12

Training for entering or re-entering the labour market
Vocational retraining (workers)

Workplace training
24
25

Temporary auxiliary contract
Training course of insertion in enterprise

Integrated training

Special support for apprenticeship
18

Aids/subsidies for apprenticeships

Job rotation and job sharing

3.1

3.2

Job rotation

Job sharing

Employment incentives

3

Aid to re-enter the labour market

4.1

Recruitment incentives
6
7
9

Aid for employing long-term and older unemployed
Mobility allowance
Income tax reduction for employing unemployed people

4.2

Employment maintenance incentives

Integration of the disabled

5.1

5.2

5.3

Regular employment
21
22
23

Measures of professionnal (re)integration of disabled workers
Adaptation of the workplace for disabled workers
Reimbursement of supplementary leave for disabled workers 

Sheltered employment

Other rehabilitation and training
20

Vocational training and retraining measures for disabled workers

Direct job creation

6.1

6.2

Permanent
13

Subsidies for the creation of jobs of socio-economic value

Temporary
2
10

Extraordinary works of general interest
Socially useful works

Start-up incentives
14

Subsidies for the creation of businesses by the unemployed

Out-of-work income maintenance and support

8.1

8.2

8.3

8.4

8.5

Full unemployment benefits
5

Unemployment compensation

Partial unemployment benefits
1
4

Partial unemployment benefit
Compensation for unemployment due to technical reasons or bad weather in the building sector

Part-time unemployment benefits

Redundancy compensation

Bankruptcy compensation
8

Debt guarantee in case of employer closing down

Source: Eurostat LMP database. Date of extraction:  13 November 2003

4

Category

Measure n°/name

9

Early retirement

9.1

Conditional
19

Early retirement

9.2

Unconditional

Number of measures: 

23

Source: Eurostat LMP database. Date of extraction:  13 November 2003

5

C - Qualitative information by measure

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

26

2

Training

Category
:

2 - Training

Training course for vocational reinsertion

Aim:
To promote the vocational reintegration of adult jobseekers through alternance training.

Beneficiaries:
Jobseekers aged over 30

Action/Instrument:
Reintegration traineeships last a maximum of 12 months and include alternating periods of hands-on and formal training. There is
no contractual relationship between the jobseeker and the company.

Persons receiving unemployment benefits continue to receive full benefits during the traineeship (around 1/3 of participants), whilst
jobseekers not on benefits receive a trainee allowance equal to the minimum wage for unqualified workers. The company can also
pay a perfomance-related premium. Since the company does not pay the trainee directly (except for any performance-related
premium), the company has to pay the Employment Fund an amount equivalent to 50% of the minimum wage for unqualified
workers. This is reduced to 35% in case of trainees of a sex under-represented in a particular sector and/or for designated
professions.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
Jobseekers aged over 30 and registered with ADEM for at least 3 months.

Legal basis:
Law of 12 February 1999

Recent changes:
New measure in operation since 1 April 1999.

Supplementary information:

Target groups:

Unemployed, Registered jobseekers

Detailed target
groups:

None

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
Yes

Other cash
benefits:

Unemployment benefit

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Typical:
Maximum:

National

Not available
1 Months

Implementation:

Year started:

Year ended:

1999

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

7

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

11

2.1

Category
:

2 - Training

Training for entering or re-entering the labour market

Institutional training

Aim:
To promote integration into working life by means of vocational training courses organised through the national education system

Beneficiaries:
Jobseekers

Action/Instrument:
In the interest of integrating into working life jobseekers registered with ADEM (l'Administration de l'Emploi), the law allows the
Minister of national education, subject to the agreement of the Minister of Labour, to organise courses, traineeships or other
measures of guidance and preparation for working life, further vocational training, retraining or improvement of skills. The
recruitment (for training) is handled by ADEM, which also deals with the placement of the candidates. 

Unemployed persons participating in these training courses may be allowed to keep, or be granted, full unemployment benefits.
Participants who do not benefit from an unemployment benefit receive a training allowance. The expenditure is supported by the
employment fund (Fonds pour l'emploi). 
The number of training courses varies according to unemployed and employers' demand - and the expenditure covers only the
costs of raw materials, training allowances and payments for instructors or part-time lecturers, and not the apprenticeship subsidies
(c.f. L-18).

Financing/support:
Finance: Employment fund.
Support: Public employment service (ADEM) and the Vocational training service, which is under the authority of the Minister for
national education, vocational training and sports.

Eligibility:
Jobseekers

Legal basis:
Law of 1976

Recent changes:

Supplementary information:

Target groups:

Unemployed

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

n.a.
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to service providers

Planned duration:

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1976

Ongoing

None

None

Typical:
Maximum:

National

2 Months
2 Years

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

8

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

12

2.1

Category
:

2 - Training

Vocational retraining (workers)

Institutional training

Aim:
To maintain jobs through vocational training

Beneficiaries:
Employees at risk of losing their job due to restructuring

Action/Instrument:
The law gives the government's Ministerial Council the power to organise vocational training or retraining courses for employees at
risk of losing their job. Via the Employment fund, the state can take in charge totally or partially the expenditure related to the
preparation, the operation and management of the courses and the losses of remuneration suffered by the employees because of
their participation in these courses. 
These courses are organised within companies or in approved training organisations.

Financing/support:
Finance: Employment fund
Responsible organisation: Minister for national education, vocational training and sports.

Eligibility:

Legal basis:
Law of 24 December 1977 authorising the government to take measures to stimulate economic growth and to maintain full
employment.

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

n.a.
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to service providers

Planned duration:

Area of
Application:

Implementation:

Year started:

Year ended:

1976

Ongoing

None

None

Typical:
Maximum:

National

Not available
Not available

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

9

Identification:

Country:

Luxembourg

Measure n°/name:

Type of action:

Description:

Year:

2001

Category
:
Temporary auxiliary contract

2 - Training

24

2.2

Workplace training

Aim:
To promote the integration of young jobseekers through in-company traineeships

Beneficiaries:
Jobseekers aged 30 or under

Action/Instrument:
Temporary auxiliary contracts (CAT) offer young people a practical initiation of work, which eases the transition between training
and working life. Employers who take on a trainee in this way are obliged to pay a trainee allowance equal to the statutory minimum
wage for non-qualified workers. The placement contracts can be concluded for a minimum of 3 months and a maximum of 12
months and are are equally applicable to public and private sector employers.
The Employment Fund takes care of the employers social insurance contributions and reimburses the employer 50% of the trainee
allowance paid.
This measure can take place in a company, an administration, a ministry or an association. A complementary allowance can be
granted to the young person if his/her unemployment benefit is higher than the allowance paid under the CAT.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
ADEM can suggest placement in a temporary auxiliary contract for any jobseeker registered with them and aged 30 or under

Legal basis:
Law of 12 February 1999

Recent changes:
From the 1st April 1999, this measure replaced two others - the "Contrat de stage-initiation" (L-15) and "Division d'auxiliaires
temporaires" (L-16)

Supplementary information:

Target groups:

Unemployed, Registered jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
Yes

Other cash
benefits:

Type of
expenditure:

Transfers to employers (Periodic cash
payments, Reduced social contributions)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1999

Ongoing

Youth

None

Typical:
Maximum:

National

12 Weeks
52 Weeks

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

10

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

25

2.2

Category
:

2 - Training

Training course of insertion in enterprise

Workplace training

Aim:
To promote the vocational integration of young jobseekers through alternance training.

Beneficiaries:
Jobseekers aged 30 or under

Action/Instrument:
The system of in-company traineeships includes alternating periods of hands-on and formal training. 

Participants receive an allowance equivalent to 80% of the minimum wage for unqualified workers. The Employment Fund covers
50% of this allowance, with the rest being the responsibility of the employer. The company can supplement the allowance with a
performance-related premium based on attendance and ability.

Trainees are subject to the legal provisions, regulations and agreements applicable to workers in their profession, as well as any
internal regulations of the company. They are insured against accidents by ADEM. 

The traineeships last up to 12 months.
A complementary allowance can be granted to the young person if his/her unemployment benefit is higher than the allowance paid
under this measure.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
This option can be suggested by ADEM for any jobseeker registered with them for at least a month and aged 30 or under.

Legal basis:
Law of 12 February 1999

Recent changes:
From the 1st April 1999, this measure replaced the "Stage de préparation en entreprise" (L-17)

Supplementary information:

Target groups:

Unemployed, Registered jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
Yes

Other cash
benefits:

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1999

Ongoing

Youth

None

Typical:
Maximum:

National

Not available
1 Years

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

11

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

18

2.4

Category
:

2 - Training

Aids/subsidies for apprenticeships

Special support for apprenticeship

Aim:
To promote apprenticeship, especially in sectors with shortage of skilled labour.

Beneficiaries:
Young apprentices

Action/Instrument:
Every employer taking on an apprentice on the basis of a contract or an apprenticeship agreement is eligible for aid from the
Employment Fund equivalent to 8% of the training allowance paid to the apprentice (12% for craft trades). A further 15% of the
trainee allowance may be paid in the case of appenticeships concluded in trades or professions where there is a recognised
shortage of labour or positions for apprentices. In addition to the subsidy, the Employment Fund reimburses employers the social
security contributions payable in respect of the trainee allowance.

Every apprentice is entitled to an annual training allowance paid by the Employment Fund (in additional to the regular allowance
paid by the employer). For apprentices in trades and professions with labour shortages a supplementary allowance is payable. A
list of the trades recognised as having a shortage of labour or apprentice positions is established and published each year by the
Minister for Work and Employment after consultation with the national Employment Commission.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM) and trade organisations

Eligibility:

Legal basis:
Regulation of the Grand-Duke of 29 August 1988

Recent changes:
The rate of the supplement has risen from 12% to 15% of the apprenticeship allowance for employers who hire an apprentice to
learn a trade or profession which has a structural lack of labour or a lack of apprenticeship positions.  This has been in effect 

Supplementary information:

Target groups:

None

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Youth

None

Type of
expenditure:

Transfers to individuals ( Lump-sum
payments), Transfers to employers (Periodic
cash payments, Reduced social
contributions)

Planned duration:

Typical:
Maximum:

Not available
3 Years

Responsible
institution(s):

Public employment services

Area of
Application:

National

Implementation:

Year started:

Year ended:

1988

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

12

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

3

4

Category
:

4 - Employment incentives

Aid to re-enter the labour market

Employment incentives

Aim:
To encourage jobseekers to take up a job with a lower wage than their previous position.

Beneficiaries:
Employees who are transferred to another company for economic reasons, and persons registered as unemployed with ADEM.

Action/Instrument:
Under certain conditions, the Employment Fund grants assistance to the re-employment of people who agree to be regraded in a
job with a lower wage than before. The aid is provided for a maximum of 48 months from the time of regrading. Taking into account
the new wage, the aid ensures a remuneration of 90% of the previous wage. In calculating the level of assistance payable, the
previous remuneration is limited to 350% of the relevant minimum wage. 

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
The aid is available primarily to employees leaving a company with economic problems for structural reasons, though subject to
certain conditions. It can also be applied for persons registered as unemployed with ADEM.

Legal basis:
Regulation of the Grand-Duke of 17 June 1994, amended on 31 July 1995.

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

n.a.
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

None

None

Typical:
Maximum:

National

Not available
4 Years

Implementation:

Year started:

Year ended:

1994

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

13

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

6

Aid for employing long-term and older unemployed

Category
:

4 - Employment incentives

Type of action:

4.1

Recruitment incentives

Description:

Aim:
Encourage employers to take on particular groups of unemployed

Beneficiaries:
Long-term and older (>50) unemployed

Action/Instrument:
Employers taking on an eligible person benefit from a reimbursement of social contributions for between 2 and 7 years (in relation
to age and duration of unemployment).
The contract of employment on which the recruitment is based must either be open-ended, or for a fixed term of not less than 24
months, and relate to working hours of not less than 20 per week. In the case of a fixed-term contract, the period of reimbursement
of social contributions is limited to 18 months.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
* Unemployed persons aged over 50 (receiving benefits or not)
Must be registered as a jobseeker for at least 1 month. Reimbursement of social contributions for up to 7 years.
* Unemployed persons aged over 40 (receiving benefits or not)
Must be registered as a jobseeker for at least 12 months. Reimbursement of social contributions for up to 3 years.
* Unemployed persons aged at least 30 (receiving benefits or not)
Must be registered as a jobseeker for at least 12 months. Reimbursement of social contributions for up to 2 years.
* Les chômeurs âgés de 30 ans au moins (indemnisés ou non indemnisés) 

Legal basis:
Regulation of the Grand-Duke of 23 July 1993

Recent changes:
None

Supplementary information:

Target groups:

Unemployed (LTU), Registered jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
No

Other cash
benefits:

Type of
expenditure:

Transfers to employers ( Reduced social
contributions)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Older

None

Typical:
Maximum:

National

2 Years
7 Years

Implementation:

Year started:

Year ended:

1993

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

14

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

7

Mobility allowance

Category
:

4 - Employment incentives

Type of action:

4.1

Recruitment incentives

Description:

Aim:
To facilitate mobility in order to find work

Beneficiaries:
Jobseekers, unemployed persons receiving benefits and young people seeking their first job.

Action/Instrument:
There are three types of mobility assistance:
- a fixed monthly allowance for travelling expenses
- a fixed monthly allowance  for double residence
- a one-off fixed payment for relocation costs

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
Jobseekers, unemployed persons on benefit or young people looking for their first job and resident in the Gand-Duchy of
Luxembourg / or registered for at least 3 months with ADEM / or who have been placed in a sustainable job in Luxembourg which is
more than 15km from their normal place of residence.

Legal basis:
Regulation of the Grand-Duke of 17 June 1994

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Registered jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals (Periodic cash
payments, Lump-sum payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

None

None

Typical:
Maximum:

National

18 Months
18 Months

Implementation:

Year started:

Year ended:

1994

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

15

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

9

Income tax reduction for employing unemployed people

Category
:

4 - Employment incentives

Type of action:

4.1

Recruitment incentives

Description:

Aim:
To encourage employers to take on young people through tax incentives

Beneficiaries:
People out of work and registered with ADEM for 3 months

Action/Instrument:
The amount of tax relief can reach 10% of the gross monthly amount deductable as operating expenses.
This relief can be obtained by employers who offer a salaried position to people who are out of work, have been registered for 3
months with ADEM and were placed by them. The jobs must be subject either to an open-ended contract or a fixed-term contract of
at least 24 months and with working time of at least 16 hours per week. The tax relief for each unemployed person taken on is
granted for a maximum of 36 months from the date of recuitment. 
Subject to these conditions, the tax relief is only available for recruitments completed between 1 July 1996 and 31 December 2002.

Financing/support:
Finance: Tax authority (Administration des contributions)
Support: Public employment service (ADEM)

Eligibility:
Persons registered unemployed for 3 months and placed by ADEM

Legal basis:
Law of 1st July 1996

Recent changes:
None

Supplementary information:

Target groups:

Unemployed

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to employers ( Reduced taxes)

Planned duration:

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1996

2002

None

None

Typical:
Maximum:

National

36 Months
36 Months

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

16

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

21

5.1

Category
:

5 - Integration of the disabled

Measures of professionnal (re)integration of disabled workers

Regular employment

Aim:
To facilitate the integration of disabled workers by encouraging employers to take them on.

Beneficiaries:
Disabled workers

Action/Instrument:
The Disabled Workers Service (STH - Service des travailleurs handicapés) can grant a recruitment subsidy in the form of a
contribution to the wage costs of disabled workers who are registered jobseekers or who are at risk of losing their job. Under the
terms of the legal provisions, the director of ADEM (l'Administration de l'Emploi) is able to grant subsidies varying from 40 to 60% of
the gross wage, an allowance to cover an initiation or hand-over period, or a reimbursement of social contributions.

Financing/support:
Finance: Public employment service (ADEM), Ministry of Labour and Employment
Support: Public employment service (ADEM)

Eligibility:
Registered disabled workers

Legal basis:
Law on disabled workers, amended 12 November 1991

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Employed at risk, Registered
jobseekers

Detailed target
groups:

Disabled

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Transfers to employers (Periodic cash
payments, Reduced social contributions)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Other benefit

Typical:
Maximum:

National

36 Months
Not available

Implementation:

Year started:

Year ended:

1992

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

17

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

22

5.1

Category
:

5 - Integration of the disabled

Adaptation of the workplace for disabled workers

Regular employment

Aim:
To facilitate the integration of disabled workers through adaptation of the workplace

Beneficiaries:
Disabled workers

Action/Instrument:
The Disabled Workers Service (STH - Service des travailleurs handicapés) can support the adaptation of work stations or the
purchase of specialised equipment for disabled workers employed in companies.

Financing/support:
Finance: Public employment service (ADEM), Ministry of Labour and Employment
Support: Public employment service (ADEM)

Eligibility:
Registered disabled workers

Legal basis:
Law on disabled workers, amended 12 November 1991

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Employed at risk, Registered
jobseekers

Detailed target
groups:

Disabled

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals ( Reimbursements),
Transfers to employers ( Reimbursements)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Other benefit

Typical:
Maximum:

National

Not available
Not available

Implementation:

Year started:

Year ended:

1992

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

18

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

23

5.1

Category
:

5 - Integration of the disabled

Reimbursement of supplementary leave for disabled workers 

Regular employment

Aim:
To compensate employers for six extra days holiday granted to disabled workers

Beneficiaries:
Disabled workers

Action/Instrument:
At the request of the employer, the Disabled Workers Service (STH - Service des travailleurs handicapés) takes responsibility for
the daily allowances due in respect of 6 supplementary days of holiday granted to disabled workers.

Financing/support:
Finance: Public employment service (ADEM), Ministry of Labour and Employment
Support: Public employment service (ADEM)

Eligibility:
Registered disabled workers

Legal basis:
Law on disabled workers, amended 12 November 1991

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Disabled

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to employers ( Reimbursements)

Planned duration:

Public employment services

Area of
Application:

Other benefit

Typical:
Maximum:

National

Not available
Not available

Implementation:

Year started:

Year ended:

1992

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

19

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

20

5.3

Category
:

5 - Integration of the disabled

Vocational training and retraining measures for disabled workers

Other rehabilitation and training

Aim:
To facilitate the integration of disabled workers through training

Beneficiaries:
Disabled workers

Action/Instrument:
The Disabled Workers Service (Service des travailleurs handicapés) of ADEM (l'Administration de l'Emploi) can take full or partial
responsibility for the costs of training or retraining of disabled workers in order to promote their (re)integration into working life.

These costs include, in particular, allowances during retraining and initiation or hand-over into work, as well as other related costs
such as registration costs, travel allowances, meal costs, and small didactic equipment.

For participants offered training by the director of ADEM but who do not receive either a disability allowance, accident insurance, or
the guaranteed minimum income, the STH can pay a monthly allowance up to the level of full unemployment benefit. For
candidates with conditions that demand that they take up a trade suitably adapted to their handicap, the STH can offer opportunities
to participate in preparatory traineeships or in courses in specialised vocational training centres.

Financing/support:
Finance: Minsitry for Labour and Employment
Support: Public employment service (ADEM)

Eligibility:
Registered disabled workers

Legal basis:
Law on disabled workers, amended 12 November 1991

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Employed at risk, Registered
jobseekers

Detailed target
groups:

Disabled

Unemployment
registration:

Condition for participation:
Registration continued:

n.a.
Yes

Other cash
benefits:

Type of
expenditure:

Transfers to individuals (Periodic cash
payments), Transfers to service providers

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Other benefit

Typical:
Maximum:

National

12 Months
24 Months

Implementation:

Year started:

Year ended:

1992

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

20

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

13

6.1

Permanent

Category
:

6 - Direct job creation

Subsidies for the creation of jobs of socio-economic value

Aim:
To encourage the creation of jobs of socio-economic value.

Beneficiaries:
Workers threatened with unemployment, job seekers registered with the ADEM.

Action/Instrument:
Aid from the employment fund is granted for the creation of jobs intended for the unemployed.
Its goal is to foster the launching, operation and development of projects to create permanent employment and services and
activities which are not covered by public services or by private enterprise. Thus any economic, social or cultural project may be
considered when it is not-for-profit.
Aid from the employment fund can be granted to institutions, bodies or groups of individuals for the creation of jobs that meet the
following conditions:
- the jobs must be reserved for individuals threatened with unemployment or to job seekers who are under 26 and are registered
with the employment office (ADEM) ;
- the jobs must be open-ended and permanent;
- the beneficiary must guarantee funding for the job created as from one year after the aid was granted;
- the beneficiary must demonstrate that he or she is in compliance with the legal, regulatory, administrative and conventional rules
which govern the protection of employees in the practice of their profession.
 Aid is granted for a maximum of one year and, in principle, is not renewable unless an exception is made in special, duly justified,
cases. A maximum of €8676.23 (LUF 350 000) is available per full-time job created.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
Workers threatened with unemployment or job seekers who are under 26 and are registered with the employment office (ADEM).

Legal basis:
Grand-Ducal Regulation of 17 June 1994.

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Employed at risk, Registered
jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
No

Other cash
benefits:

Type of
expenditure:

Transfers to employers ( Lump-sum
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

None

None

Typical:
Maximum:

National

Not available
1 Years

Implementation:

Year started:

Year ended:

1995

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

21

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

2

Extraordinary works of general interest

Category
:

6 - Direct job creation

Type of action:

6.2

Temporary

Description:

Aim:
To maintain employment in sectors experiencing economic difficulties by occupying the manpower in public works.

Beneficiaries:
Employees in sectors experiencing economic difficulties

Action/Instrument:
The government determines those sectors where economic difficulties are such that it is necessary to make recourse to exceptional
public works in order to ensure productive employment of the available labour force. The head of a company proposing to make
use of this type of work must consult with staff, a joint committee of employers and employees and, if necessay, the trade unions.
The Minister of Labour is responsible for the decision to admit the company to the work.

Working relationships between the employer and staff are maintained. The costs are borne by the Employment Fund. However, the
local authorities and other public bodies involved in the proposal which the Government aims to complete through this exceptional
public works, reimburse the realted costs to the state. The Ministerial Council can reduce by up to a quarter the amount to be
reimbursed.

Financing/support:
Finance: Employment Fund
Responsible institution: Central government

Eligibility:
Sectors experiencing severe economic difficulties, as designated by the Ministerial Council on recommendation from the Economic
Committee.

Legal basis:
Law amended on 26 July 1975

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to employers ( Reimbursements)

Planned duration:

Central government

Area of
Application:

Implementation:

Year started:

Year ended:

1977

Ongoing

None

None

Typical:
Maximum:

National

Not available
Not available

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

22

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

10

6.2

6 - Direct job creation

Category
:

Socially useful works

Temporary

Aim:
To promote the integration of unemployed persons by providing work in socially useful activities

Beneficiaries:
Persons on unemployment benefit or those eligible to unemployment benefits.

Action/Instrument:
Unemployed persons participating in work for public benefit may be allowed to keep, or be granted, full unemployment benefits.
Indeed, the law recognises a supplementary monthly allowance of 148.74 € for unemployed persons on benefit assigned to a task
designated as being of public benefit.
By law, the supplementary allowance is not considered as a secondary income to be taken into account when calculating the level
of unemployment benefit payable. The supplementary allowance is subject to the social contributions and taxes associated with
regular wages, except that the employers social contributions are covered by the Employment Fund. 

The Employment Fund pays the supplementary allowance as well as related expenses, in particular insurance, social security,
transport, materials, equipment, safety and all other costs related to the activation.

Financing/support:
Finance: Employment fund.
Support: Public employment service (ADEM)

Eligibility:
Jobseekers registered with ADEM

Legal basis:
Law amended on 30 June 1976

Recent changes:
None

Supplementary information:

Target groups:

Unemployed

Detailed target
groups:

None

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
Yes

Other cash
benefits:

Unemployment benefit

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Typical:
Maximum:

National

18 Months
18 Months

Implementation:

Year started:

Year ended:

1976

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

23

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

Type of action:

Description:

14

7

Category
:

7 - Start-up incentives

Subsidies for the creation of businesses by the unemployed

Start-up incentives

Aim:
To support unemployed persons starting a company.

Beneficiaries:
Jobseekers starting or taking over a company over which they have effective control, or taking up a non-salaried trade.

Action/Instrument:
Beneficiaries receive assistance granted through capitalisation of the unemployment benefit they would have received during the
six months following the start or resumption of activity.

Financing/support:
Finance: Employment Fund
Support: Public employment service (ADEM)

Eligibility:
The assistance is available to 
- all jobseekers on benefits for 6 months;
- jobseekers aged 40 or over and receiving benefits for 3 months;
- jobseekers not on benefit but registered with ADEM for 8 months and having been employed in the country for at least 6 years;
and who are start or take over a company over which they have effective control or who take up a non-salaried trade in certain
sectors/occupations.

Legal basis:
Regulation of the Grand-Duke of 17 July 1994

Recent changes:
None

Supplementary information:

Target groups:

Unemployed, Registered jobseekers

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals ( Lump-sum
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

None

None

Typical:
Maximum:

National

Not available
Not available

Implementation:

Year started:

Year ended:

1994

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

24

Identification:

Country:

Luxembourg

Measure n°/name:

5

Year:

2001

Category
:
Unemployment compensation

8 - Out-of-work income maintenance and support

Type of action:

8.1

Full unemployment benefits

Description:

Aim:
To partially compensate for loss of wages due to unemployment

Beneficiaries:
Unemployed persons registered with ADEM who are seeking and available for work

Action/Instrument:
In case of the termination of an employment relationship, a worker previously employed for at least 16 hours per week is eligible to
receive full unemployment benefits so long as he/she fulfils certain legal criteria.
Unemployment compensation is paid at a rate of 80% of the previous gross wage, so long as this does not exceed 250% of the
minimum wage. This threshold is reduced to 200% after 182 days of unemployment within a 12 month period. Under certain
conditions the allowance can be continued for a second period of 6, 9 or 12 months (with a threshold of 150% of the minimum
wage).

Financing/support:
Finance: Employment Fund
Support: Public employment service

Eligibility:
Persons out of work, previously employed for at least 16 hours a week and having worked for a certain length of time. The law also
defines the compensation systems for young people and self-employed persons who have ceased activity due to economic
difficulties or through the intervention of a third party.

Legal basis:
Law amended on 30 June 1976 in relation to 1) establishment of the Employment Fund, 2) regulations on the payment of
unemployment compensation

Recent changes:
None

Supplementary information:

Target groups:

Unemployed

Detailed target
groups:

None

Unemployment
registration:

Condition for participation:
Registration continued:

Yes
Yes

Other cash
benefits:

Unemployment benefit

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Typical:
Maximum:

National

12 Months
24 Months

Implementation:

Year started:

Year ended:

1976

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

25

Identification:

Country:

Luxembourg

Measure n°/name:

1

Year:

2001

Category
:
Partial unemployment benefit

8 - Out-of-work income maintenance and support

Type of action:

8.2

Partial unemployment benefits

Description:

Aim:
To maintain employment by compensating for loss of wages in case of short-time working.

Beneficiaries:
Workers subject to short-time working arrangements

Action/Instrument:
The compensatory allowance is paird for each working hour lost involuntarily other than for personal reasons. The working week to
be taken into account when fixing the normal hours of work for the month concerned is the regular working week of the company,
which cannot in any case exceed 40 hours. The rate of the compensatory allowance is fixed at 80% of the regular gross hourly
wage, though it cannot exceed 250% of the minimum wage. 

The allowance due in respect of the first 16 hours per month is paid by the employer and the worker according to rates agreed by
both parties, though the share of the workers cannot exceed 8 hours (50%). A subvention from the state then covers the total
amount of compensatory allowances paid out by the employer in respect of hours lost in excess of the first 16 per month. 

The allowance is payable for a maximum of 6 months within a 12 month reference period.

Financing/support:
Finance: Employment Fund
Support: Public employment service

Eligibility:
The compensatory allowance is payable to all workers regularly employed by the company at the time that short-time working
arrangements are introduced, excluding the following: 
- persons aged over 64;
- persons for whom the formal retirement age is below 65 and who already receive a pension;
- young people covered by an apprenticeship contract.
The government (Ministerial Council) determines, on the advice of the Economic Committee, the sectors in which the economic
difficulties are such that reductions in normal working hours are inevitable.

Legal basis:
Law of 26 March 1998, which amended and completed the law of 24 December 1977

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Implementation:

Transfers to employers ( Reimbursements)

Planned duration:

Public employment services

Year started:
Year ended:

1975
Ongoing

Area of
Application:

None

None

Typical:
Maximum:

National

1 Months
6 Months

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

26

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

4

Compensation for unemployment due to technical reasons or bad weather in the
building sector

Category
:

8 - Out-of-work income maintenance and support

Type of action:

8.2

Partial unemployment benefits

Description:

Aim:
To compensate for hours of work lost involuntarily by employees in the building sector

Beneficiaries:
Employees in the building sector

Action/Instrument:
In case of involuntary unemployment as a direct result of bad weather, workers employed in construction who suffer a loss of
wages without any break in the employment relationship are eligible for a compensatory payment.

The wage compensation is payable for each hour of work lost involuntarily other than for personal reasons beyond a basic 8 hours
per calendar month. Compensation is payable in respect of single hours and not just for whole days of unemployment. The wage
compensation is paid by the employer who is reimbursed by the Employment Fund for the full amount paid out. 

The rate of the compensatory allowance is fixed at 80% of the regular gross hourly wage, though it cannot exceed 250% of the
minimum wage.

Financing/support:
Finance: employment Fund
Support: Public employment service

Eligibility:
The measure relates only to employees in the building or civil engineering sectors or related trades, who routinely work on
building-sites and suffer loss of wages without any break in the employment relationship.

Legal basis:
Law of 25 April 1995

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Responsible
institution(s):

Transfers to employers ( Reimbursements)

Planned duration:

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1995

Ongoing

None

None

Typical:
Maximum:

National

Not available
Not available

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

27

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

8

Debt guarantee in case of employer closing down

Category
:

8 - Out-of-work income maintenance and support

Type of action:

8.5

Bankruptcy compensation

Description:

Aim:
To guarantee the payment of employees in case of bankruptcy of the employer

Beneficiaries:
Employees who have not been paid due to bankruptcy of their employer

Action/Instrument:
In case of bankruptcy of an employer, the Employment Fund guarantees cover wages and all kinds of allowances due to
employees at the date of the formal declaration of bankruptcy in relation to the previous 6 months of work and as a result of the
break of contract, up to a net amount of 6 times the relevant minimum wage.

Financing/support:
Finance: Employment Fund
Support: Public employment service

Eligibility:
Persons whose contract of employment is broken due to bankruptcy of the employer.

Legal basis:
Law of 24 May 1989 on employment contracts

Recent changes:
None

Supplementary information:

Target groups:

Employed at risk

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

No
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals ( Lump-sum
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Implementation:

Year started:

Year ended:

1989

Ongoing

None

None

Typical:
Maximum:

National

6 Months
6 Months

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

28

Identification:

Country:

Luxembourg

Year:

2001

Measure n°/name:

19

Early retirement

Category
:

9 - Early retirement

Type of action:

9.1.2

Partial

Description:

Aim:
To ease the transition from working life to retirement by encouraging gradual early retirement provided that unemployed individuals
are hired as replacements.

Beneficiaries:
Employees aged over 57 (52 in the mining sector)

Action/Instrument:
The early retirement allowance is calculated according to average gross wages in the three months prior to obtaining the allowance.
This reference salary includes the variable part of wages (extra pay for working Sundays, nightshifts, bank holidays, etc.) by taking
into account the annual average. Moreover, the "13th month" is included by adding 1/12 of it per month.
During the first year, the amount is set at 85% of wages.  During the second, it is set at 80%, and during the third, 75%. The aid is
limited to 5 times the statutory minimum wage.  Social contributions and taxes must be paid.
Entitlement to the early retirement allowance lapses the day that the retiree becomes entitled to an old age or invalidity pension, or
if he or she takes on paid employment (where wages are higher than half the statutory minimum wage).
 There are four different kinds of early retirement:
- "Solidarity" early retirement: this type of early retirement is intended for workers in the private sector.  It requires agreement
between the worker and the employer in the form of a special, individual contract. The government's financial contribution is
conditional upon a job seeker put forward by the ADEM or a worker at immediate risk of redundancy on economic grounds being
hired. The law does not require each position to be replaced, but rather the total number of employees. In this way, the newly-hired
worker or apprentice will not necessarily take on the job left by the retiree. The employer must demonstrate that there is a causal
relationship between the hiring and the early retirement of the staff member. The allowance will be paid for a maximum of three
years. The employment fund refunds this to the tune of 70%.
 - Gradual early retirement: this is granted to employees who are willing to change their full-time employment to part-time.
The government refunds the financial contributions paid by the employer provided that they justify that they have actually hired one
or more unemployed individuals receiving benefits or job seekers registered at the ADEM for at least 6 months (on a permanent
contract or as an apprentice). It is up to the employer to demonstrate that there is a causal relationship between the hiring and the
early retirement of the staff member. The amount of the allowance is calculated in proportion to the working time of the early retiree.
The employment fund refunds up to 100 % of this.
 - "Adjustment" early retirement: this concerns employees of undertakings being restructured or being closed. The allowance may
be paid out for more than three years in cases where early retirement begins on 1 January of the year in which the worker turns 57.
This scheme can only be applied when an agreement has been concluded with the Minister of Employment. The undertaking may
be required to pay part of the contributions (maximum of 50%) resulting from the early retirement allowance if it is in good economic
and financial condition.
 - Early retirement for shift/night workers: this can be granted to workers who have spent 20 years working shifts or working nights.
It will be paid for a maximum of three years. The Minister of Employment is responsible for deciding whether early retirement under
this scheme is possible. If the Minister agrees that it is so, the employer will be fully refunded their costs of the early retirement
allowance from the employment fund.

Financing/support:
Finance: Employment Fund
Support: Public employment service

Eligibility:
Workers of 57 years of age or older, provided that they are eligible for an early old-age pension at the age of 60. Note that there is
an exception to this condition for the "adjustment" early retirement.

Legal basis:
Law of 24 December 1990 on early retirement (Mémorial A (Luxembourg official journal), 1990, P. 1331) as amended by:
- Law of 27 July 1992 reforming sickness insurance;
- Law of 23 July 1993 laying down various employment measures;
- Law of 31 July 1995 on employment and vocational training;
- Law of 12 February 1999 on the implementation of a national action plan for employment.

Recent changes:
None

Supplementary information:

Target groups:

None

Detailed target
groups:

Unemployment
registration:

Condition for participation:
Registration continued:

n.a.
No

Other cash
benefits:

Type of
expenditure:

Transfers to individuals (Periodic cash
payments)

Planned duration:

Responsible
institution(s):

Public employment services

Area of
Application:

Older

None

Typical:
Maximum:

National

Not available
3 Years

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

29

Implementation:

Year started:

Year ended:

1995

Ongoing

Source: Eurostat LMP database. Date of extraction:  13 November 2003
Further reading: European Social Statistics, Theme 3, Labour market policy - expenditure and participants. 

30