From tax relief to a free trial period for a new employee, there is a wide range of state aid and incentives available to employers when recruiting an unemployed person.  Photo: Shutterstock

From tax relief to a free trial period for a new employee, there is a wide range of state aid and incentives available to employers when recruiting an unemployed person.  Photo: Shutterstock

When a company recruits an unemployed person, or somebody with a disability or who is being redeployed, it can claim various forms of financial assistance. Here are a few schemes employers may have missed.

“When I started here two and a half years ago, many employers were unaware of the existence of certain forms of assistance,” recalls Jessica De Sa Correia, disability and outplacement employer adviser at Adem, Luxembourg’s employment development agency.

For example, she says, a professional training course that allows employers to “test” new employee over a short period without paying them anything (the state does). “For disabled people in particular, it’s an opportunity to show what they’re worth,” says De Sa Correia, who will be promoting the scheme at Disability Job Day on 8 October 2024 at the Parc Hotel Alvisse. “And for employers, it’s no more risky than a free trial.”

And there are other recruitment aids that employers may not know about. Something, in fact, for nearly every situation. Here’s a selection of the lesser-known ones.

Work experience placements

What is it? A six-week work placement (extendable to nine weeks) during which the employer can put their recruit through their paces without any financial risk: the state will pay.

Whom is it for? Jobseekers over 30; employees who are disabled or in need of redeployment.

Employment reintegration contract (CRE)

What is it? A CRE is a twelve-month contract during which Adem pays the jobseeker an allowance corresponding to the minimum social wage (SSM). People receiving unemployment benefit or waiting allowance, for example, will continue to receive this benefit, subject to an increase of around €400.

Whom is it for? Jobseekers over 45; people undergoing outplacement; people with disabilities.

Contribution towards salary costs

What is it? This scheme amounts to aid for employers who take on a person undergoing redeployment (or who redeploy them internally) and who are faced with a loss of performance in the job concerned. The state will contribute up to 75% of the salary paid by the applicant company.

Whom is it for? Private and public sectors.

Workplace adjustments

What is it? Per the name, this is aid for adapting the workplace (and purchasing equipment) when an employer recruits a person who needs to be redeployed or when they redeploy internally. Financial support can cover up to 100% of the expenses incurred.

Whom is it for? Private and public sectors.

Employment initiation contract (CIE)

What is it? A CIE is twelve-month contract (with the possibility of an additional six months) for young jobseekers under which the employer can be reimbursed for part of the salary and the employer’s share of social security contributions.

Whom is it for? Unemployed people under 30 who have been registered with Adem for at least three months. Depending on their situation, they receive between 80% and 130% of the minimum wage. To be eligible, the employer must “be able to offer the young person a real prospect of employment at the end of the contract.”

Employment support contract (CAE)

What is it? The CAE is very similar to the CIE, the difference being that it’s aimed at structures that are not organised as commercial companies, such as non-profit organisations.

Whom is it for? People under 30 who are not in the labour market. They receive between 80% and 130% of the SSM, while the Employmend Fund (Fonds pour l’emploi) reimburses the employer (if it is not state-owned) 75% of the allowance received by the young recruit and all the employer’s contributions. This lasts for the first twelve months.

Aid for the recruitment of the long-term unemployed (EMI)

What is it? EMI is financial assistance paid by the ministry of employment if you take on an unemployed person 30 or over who has been out of work for at least a year. To qualify for this aid, a new job must be created (replacements for vacant posts are therefore excluded) and the contract must be in the form of a permanent contract.

Whom is it for? The state; local authorities and associations; public establishments; non-profit organisations; companies with a social impact; foundations. The list of possible beneficiaries is potentially longer than this. The amount of aid depends on the profile of the person hired.

Aid for hiring older unemployed people

What is it? Companies can qualify for a financial boost if they hire an unemployed person 45 or over. The company has the option of recovering the employer’s share of the social security contributions paid, for a period of varying length.

Whom is it for? Unemployed people 45 or over. The aid also depends on the nature of the employment contract (bearing in mind that if it is a fixed-term contract, it must be for at least 18 months) or it can be applied for when replacing a person going on parental leave.

Tax relief

What is it? A tax incentive granted to companies that recruit an unemployed person who has been registered with Adem for at least six months and has been assigned by Adem.

Whom is it for? Commercial, industrial and craft companies are eligible; farms; and the self-employed. Temporary workers are excluded from this scheme, however, if their monthly bonus is equivalent to 10% of the amount of gross monthly pay deductible as a business expense for a maximum period of 12 months.”

This article was originally published in French.