EMPLOYMENT FUND

About

Country: 
Luxembourg
efd.admin


LUXEMBOURG
FONDS POUR L'EMPLOI
EMPLOYMENT FUND

Set up in 1976, the Employment Fund (initially called Fonds de chômage, i.e. Unemployment Fund) is administered by the Minister for Labour and covers forms of expenditure including: unemployment benefit ; subsidizing the payment of employees on short-time working ; guaranteeing the pay of employees affected by bankruptcy of the employer ; reimbursement of employers for trainee allowances paid under a scheme for first-time jobs for young people (see young unemployed person ); repayment to the organizers of temporary work schemes of the Fund's contribution towards young workers' pay under the Youth Employment Scheme ; temporary aid to encourage workers in redundancy situations to accept new jobs at lower rates of pay (see re-employment support ); flat-rate geographical mobility allowances; aid for the creation of jobs classed as socially and economically useful; enterprise start-up grants ; and expenses associated with the employment or retraining of those receiving benefits from the FNS making up the guaranteed minimum income .

The Fund's revenue derives from a mixed system of financing based on contributions from private-sector employers (suspended since 1983) and commerce, and general taxation (including increased personal income tax and tax on petrol).


Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.