MEET Adem. Information Session for Employers. Head of the Foreign employment service Head of the Employer service. 4 June 2014

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1 MEET Adem Information Session for Employers Isabelle SCHLESSER Laurent PEUSCH Guy PÜTZ Director of Adem, National Employment Agency Head of the Foreign employment service Head of the Employer service 4 June

2 AGENDA Welcome Luxembourg s labour market Adem s new services for employers Financial aids and measures for companies Hiring a third-country national 2.

3 The employment situation in Luxembourg Total employees: people, amongst them 43,6% Cross-border commuters 28,9% Luxembourg citizens 27,5% Foreign residents More than 70% of the workforce in the G-D of Luxembourg are non-luxembourgers! Sources : IGSS / Statec Données au 31 mars

4 Arbeitsmarkt Where do the cross-border commuters come from? cross-border commuters on the Luxembourg employment market 25,3% from Belgium 25,3% from Germany 49,4% from France More than 43% of the Luxembourg employees are cross-border commuters! 4.

5 Unemployment rates in Europe Source: Eurostat 5.

6 Unemployment in Luxembourg On 30 April 2014, the unemployment rate was 7.1 %. In Luxembourg there were: unemployed residents not covered by an employment programme; unemployed persons with benefits (full unemployment benefits); persons in an employment programme; declared vacant positions in March; vacant positions not filled (stock). 6.

7 Paradoxical development : Increase in employment and - at the same time - increase in unemployment Total salariés DE disponibles Sources : Statec ADEM / Moyenne emploi salariés 2013 : 11 mois (janvier-novembre 2013) 7.

8 Unemployment characteristics December 2013 Nationalities : Port.: (35,8%) Lux.: (27,7%) other nationalities : (36,5%) Age : < 25 years : (12,8%) 40 years : (51,6%) Education: Inferior to compulsory education : persons (44,8%) Higher education (baccalauréat +) : persons (15,3%) with > 4 years of university studies : persons Long-term unemployed job-seekers (more than 12 months) : persons (40,6%) 8.

9 Job vacancies In the interest of a good functioning of the Luxembourg labour market, any job vacancy must be declared to Adem Numbers of monthly registred job offers : Jan-14 Feb -14 March-14 April A lot of companies regularly use Adem s free service to register vacant jobs and to provide assistance in the recruitment process, i.e. 9.

10 Adem s new services for employers 10.

11 Adem s Employer services New service officially launched in October 2013 as part of Adem s reform process Main objective: helping companies to develop their business by offering the best suitable candidate(s) - because the success of a company depends on its staff! 1st priority: search for the best candidates on national level; if not available search within the Greater Region and in Europe (Adem is member in the EURES network) Employer services should become an additional asset of Luxembourg in order to attract foreign companies and to offer value-added services for Luxembourg based enterprises. 11.

12 Our approach Establish and foster sustainable links between employers and Adem «One face to the customer» Each employer will be assigned to one contact person within the Adem Each job offer will be processed and followed-up by one dedicated advisor from the Employer services Interactive website with the possiblity to publish job offers and to consult the profiles of possible candidates (planned for 2015) I 12.

13 Employer services our team Our advisors are specialised in the following sectors: Industry (3) Construction (1) Hospitality industry (2) Temporary Employment (2) Trade (2) Crafts (2) Financial sector (2) IT (1) Experts for executives (1) and business creation (1) Non-sectoral team (6) Currently hiring in the following sectors: Health (1), Cleaning (1), Construction (1), Finance (1) -> thus a team of 27 Employer advisors emerging from the private sector 13.

14 New services for employers available Easy access Central hotline for employers: tel A new declaration form has been made available online on the Adem s website ( as well as on the «Guichet unique» ( 14.

15 How to declare a job vacancy? declaration form in English, French and German available on Adem s homepage ( Interactif form Possibility to send it back by and Fax together with a job descripition, if available Luxtrust solution will be available soon 15.

16 Improved internal organisation Backoffice: Centralised registration of job offers Notification of registration with offer number is sent within 24 hours Job offers remain open for two months Notification two weeks before the job offer expires with possibility to extend the validity for another two months More targeted assignments to candidates due to new performant tools (ROME and CROSS) 16.

17 Missions of the employer advisors Contact person for the recruiting company Management of job offers and monitoring of the follow-up and the quality of the matching Value-added information and advice to companies Prospection of new clients Personalised assistance during the whole recruitment process Selection of candidates Recruitment workshops Tailor-made training 17.

18 Recruitment assistance Recruitment workshops: Sectoral employer advisors play a crucial role in the selection and insertion of new potential staff members Services offered to companies recruiting several similar positions: Pre-selection of candidates based on criteria provided by the company Preparing candidates in special information sessions 18.

19 Tailor-made training Adem prososes on-the-job-training to the candidates selected during a recruitment workshop in order to prepare them for the new job Opportunity for companies to profit from tailor-made trainings of the new staff members prior to their work start, allowing them to become operational as from the first day of work Financed by the Employment Fund 19.

20 Financial aids and measures for companies 20.

21 Company aids for specific categories of job-seekers 1. Employment aids and measures for: Young people Unemployed adults Elderly and long-term job-seekers Disabled or reclassified employees 2. Aids for maintaining the employment 21.

22 Youth unemployment Facts & Figures: youth unemployment rate in LU (2013) : 15,5% below EU average which is 23% in April 2014, a total of young people were registred as job-seekers 22.

23 What is the «Youth Guarantee»? Youth Guarantee Recommendation of the European Council in order to tackle the problem of youth unemployment What is «guaranteed»? Member States committed to ensure that, within 4 months of leaving school or losing a job, people under 25 should receive a good-quality offer of employment, further education, an apprenticeship or a traineeship. The Youth Guarantee is NOT a «Job Guarantee»! How will the Youth Guarantee be implemented in Luxembourg? Official launch on 26 June different courses «Parcours» «Parcours professionnel» : supports young job-seekers to access the labour market; proposed by Adem «Parcours scolaire» : supports young people to continue further education (incl. apprenticeship), proposed by the «Action locale pour Jeunes» (ALJ) «Parcours d activation»: supports young people to find the right way towards their future active life, proposed by the «Service national de la jeunesse» (SNJ) 23.

24 Measures for young people Apprenticeships for adolescents: An apprenticeship combines both theoretical and general training from a technical school, and practical training in a commercial, industrial, agricultural or craft business, supervised by an employer Adolescents who intent to enroll in an apprenticeship have to be at least 15 years of age have completed the statutory compulsary schooling The employer (also called mentor) has to be at least 21 year old be approuved by the competent employer s association (Chamber of Commerce, Chamber of Crafts or Chambre of Agriculture) meet the conditions of professional integrity and qualification 24.

25 Apprenticeships for adolescents Funding for the training of an apprentice: - Partial refund of the apprenticeship allowance DAP and DT: (Vocational training diploma / Technician s diploma) CCP: (certificate of professional competence) 27% of the apprenticeship allowance 40 % of the apprenticeship allowance - Employer s share of the social security contributions reimbursed by the National Employment Fund 25.

26 Employment initiation contract (CIE) Eligible: companies stemming from the private sector Target: young people under 30 years of age, qualified or nonqualified, registered by Adem for at least 3 months Contract to be concluded between employer, adolescent and Adem Practical arrangements: tutor, training plan, assessment 12-months contract with a renewal for further 6 months upon advice by the director of the Adem 26.

27 Financial and practical arrangements Base salary of young people: Under the age of 18: 80% of SSM 1.536,82 EUR Non-graduated, DAP, technician, High School Diploma : 100% of SSM 1.921,03 EUR BTS, Bachelor, Master: 130% of SSM 2.497,34 EUR Reimbursement by the Employment Fund: 50 % of the base salary (65 % if the person employed is of the gender which is underrepresented in the employer's sector of activity and/or in the profession concerned); the employer's full share of social security contributions In the event of an extension of the CIE, the employment fund reimburses the employer, for the duration of the extension: 30 % of the base salary; the employer's full share of social security contributions. 27.

28 Employment aids for unemployed adults Incentive recruitment bonus Unemployed and benefiting from an unemployment allowance, > 30 years Reimbursement of 80% of the salary paid in the 3 months following to the hiring including the employer's full share of social security contributions Employment aid for an elderly and for a long-term unemployed Recovery of social security contributions as shown in the following table: Age: Registration period: Period of reimbursement: months 2 years months 3 years From 45 1 month Until retirement Tax relief when hiring an unemployed person Tax relief of 15% of the total gross salary for a period of max. 36 months 28.

29 Reinsertion internships Reinsertion internships: Who is concerned? Job-seekers of 30 years of age or more Registered as a job-seeker with Adem for at least 3 months How does it work? The person is detached by Adem in order to work in the company 12 months maximum (prolongation possible) Social minimum salary is co-financed by 50% 29.

30 Apprenticeships for Adults Conditions of access: The applicant must be at least 18 years of age have left the initial school system for at least 12 months have worked on the Luxembourg territory for at least 12 months A commission decides on the eligibility of an apprenticeship for adults. All apprenticeship contracts must be concluded between 16 July and 31 October. 30.

31 Aids for company creation Who is eligible? Benefits: Job-seekers receiving unemployement allowance since min. 3 months and who are min. 40 years old Job-seekers receiving unemployment allowance since min. 6 months Job-seekers who are registred at Adem for at least 8 months and who can look upon a professional career of at least 6 years in Luxembourg Financial aids can be granted up to an amount equivalent to the unemployment benefits of max. 6 months (paid on proof of real expenditures) Assistance proposed by Adem: 1. Monthly initiation workshops (half-days) for job-seekers interested in company creation: What does it mean to be an entrepreneur?» 2. Personal coaching of job-seekers (up to 4 sessions) by an experienced Adem advisor to develop the entrepreneurial spirit and concretise the project 3. Connect the job-seekers with the relevant competent actors (Chamber of Commerce, Chamber of Crafts, 1,23, Go, etc.) 31.

32 State aids for disabled or reclassified employees Employers with more than 25 employees must allocate a certain percentage of positions to disabled workers. To help employers comply with this requirement, the State may take over some of the costs incurred with regard Contribution to the salary and reimbursement of the employer's share of social security contributions Costs for reasonible adaption of workstations and physical access to work, training fees, transport, and the provision of adequate professional equipment for disabled employees 32.

33 Aids for maintaining employment Compensatory remuneration allowance in the event of short-time work In the event of an interruption to or significant reduction of the company s activity (upon approval by the Economic Committee) Compensatory remuneration allowance in the event of a temporary involuntary layoff Due to a natural disaster affecting its production equipment Compensatory remuneration allowance in the event of involuntary layoff due to bad weather conditions In the event of bad weather making the completion of work impossible, or even dangerous Partial refund of the salary, provided that there is no layoff for economic reasons 33.

34 Payment of employment aids in 2013 Type of aid Amount in EUR Employees concerned Incentive recruitment bonus Employment aid for an elderly and for a long-term unemployed 19,6 mio Aids for maintaining employment 13,5 mio Unemployment allowance: Amount in EUR Beneficiaries ,6 mio

35 Interested? For more detailed information about employment aids and measures please consult the following websites or contact the Adem Employer services or your advisor tel

36 Hiring a third-country national Laurent PEUSCH Head of the Foreign employment service 36.

37 The «certificate» - a new document for employers The article L of labor law describes the procedure an employer has to follow to obtain a certificate: the vacancy has to be declared at the Adem (legal obligation L (1)(2), If, after 3 weeks, Adem could not propose an appropriate candidate or if those proposed were not appropriate, the employer is allowed to apply for a certificate, A decision about the application will be notified within 5 working days, the certificate is not required for the blue card (before HQ), the easiest way to apply is by mail at Important - the certificate can be requested at earliest 3 weeks after the registration of the job offer and has to be requested before the closure of the job vacancy, which normally is 2 months after the registration. 37.

38 Registration of family members Family members or partners of the newly recruited employee, who wish to continue their career in Luxemburg, can register at Adem as soon as they have received their resident card as family member from the direction of immigration. The registration can be done at the agency which is nearest to their place of residence Information about Adem s 7 regional agencies can be found on the Adem website ( 38.

39 Thank you for your attention Adem Employer Service Tel Fax: Foreign Employment Service B.P. 289 / L Esch-sur-Alzette Fax:

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