On June 9 2017 the minister of labour, employment and the social economy submitted to the Chamber of Deputies Bill 7149, which modifies the Labour Code by introducing a new provision to combat long-term unemployment.

Despite a clear improvement in the employment market, some job seekers – particularly the long-term unemployed, who represent 47% of the total unemployment figure – have not benefited from this positive trend. Long-term unemployment mainly affects those with low-level qualifications (59%) and those aged over 45 (60%).

To mitigate this inequality, Bill 7149 introduces an option for employers to receive support from the Employment Fund when entering into open-ended employment contracts with job seekers who are registered with the Employment Development Agency and have been unemployed for at least one year. This recruitment support comprises a refund of the salary actually paid, which will be calculated on a decreasing sliding scale depending on the time spent in the job.

For further information on this topic please contact Guy Castegnaro or Ariane Claverie at Castegnaro by telephone (+352 26 86 82 1) or email ([email protected] or [email protected]). The Castegnaro website can be accessed at www.castegnaro.lu.