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Employment initiation contract (Contrat d'initiation à l'emploi - CIE)

Improving the integration of young people into the labour market

The employment initiation contract provides a first practical experience for young job seekers under 30 years of age who have been registered with the Agency for the Development of Employment (Agence pour le développement de l’emploi – Adem) for at least 3 months. The State covers the employer's social security costs in full as well as 50% of their salary for the duration of the contract.

Purpose

The contract is entered into for 12 months with the option of a maximum extension of 6 months. Under certain conditions, an exception can be made to the length of registration for young job seekers awaiting an apprenticeship contract.

Employers who take on young job seekers registered with the Adem under an employment initiation contract can, on request, claim back some of the salary payments as well as all of the employer's social security costs.  This support is available to any company acting as a "promoteur" (sponsor), that wishes to offer real practical training to a young job seeker.
The reimbursement claim should be sent to the Youth Employment Service (Emploi des Jeunes).

Prerequisites

Employers using an employment initiation contract must be able to offer the young person:

  • Either a real employment opportunity at the end of the contract,
  • or improved employability, thereby increasing his or her employment opportunities on the labour market.

The employer must inform and consult the following bodies when entering into an employment initiation contract:

  • The staff delegation,
  • The equality representative,
  • Where relevant, the joint committee, at least once yearly.

Type of financial support

Reimbursement on salary compensation
  • The Employment Fund (Fonds pour l’emploi) reimburses a share of the basic salary compensation to the employer.
Reimbursement of the employer's social security costs
  • The Employment Fund (Fonds pour l’emploi) pays all of the employer's social security costs.

Reimbursement of employer's costs if a young job seeker is taken on following an employment initiation contract.

Amount and length of subsidies

For the first 12 months of the employment initiation contract, the Employment Fund (Fonds pour l’emploi) makes the following monthly reimbursements to the employer:

  • 50% of the basic compensation (65% if the people employed are of an under-represented sex in the sponsor's business sector and/or in the profession in question),
  • All of the employer's social security costs.

If the contract is extended, the Employment Fund (Fonds pour l’emploi) pays the following to the employer for the duration of the extension (a maximum of 6 months):

  • 30% of the basic compensation,
  • All of the employer's social security costs.

If a young job seeker is taken on following an employment initiation contract, the Employment Fund (Fonds pour l’emploi) will reimburse the employer's costs for the first 12 months of a permanent contract, from the start date. The reimbursement is only due 12 months after the young job seeker has been taken on under a permanent contract with no trial period, and on the condition that the contract is still in force when the claim is made.

This reimbursement cannot be obtained cumulatively with other employment measures.

Obtaining the subsidy

The employer may send a duly completed monthly claim declaration, together with the required items as set out in the form, to the Adem's Youth Employment Service (Service emploi des jeunes). The documents can be downloaded from the Business Portal from Guichet.lu, under Forms and Online services.

Last update - 08.07.2019

 

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