Reinsertion and Professional Reclassification in Luxembourg

1. What is professional reclassification?

Professional reclassification applies to employees who, without being classified as disabled, have a reduced capacity to perform the tasks of their last position due to illness or disability (Art. L.551-1). It is neither a unilateral employer decision nor a negotiated departure: it is a supervised procedure involving the occupational physician, the Joint Commission and, where applicable, the ADEM.

Reclassification may be internal (new post within the same company) or external (return to the labour market). The choice depends on the size of the company and the practical possibilities for reassignment.

2. Eligibility conditions

To be eligible for reclassification, the employee must meet one of the following two conditions (Art. L.551-1):

• have at least three years' seniority in the last position; or
• hold a fitness-for-employment certificate issued by the occupational physician at the time of taking up that position.

3. Internal and external reclassification

Internal reclassification

The employee is reassigned within the company to a post suited to their residual capacity, as validated by the occupational physician (Art. L.551-1). This post may involve a reduction in working time, within the limits set by the procedure (see the workplace accidents and occupational diseases guide for details of percentages applicable to AT/MP victims).

External reclassification

Reclassification is external when internal reclassification is impossible or when the employer is exempted from it by the competent Joint Commission (Art. L.551-1 and L.551-3). The employee is then guided back to the labour market with ADEM support.

4. Employer obligations

The obligation to reclassify is not universal: it applies to employers with at least 25 employees (Art. L.551-2). Below this threshold, the employer is not required to carry out internal reclassification — the employee is then directed straight to external reclassification.

For employers subject to this obligation, internal reclassification must be offered in good faith: the post offered must be real, suited to the employee's capacity and validated by the occupational physician. A refusal by the employer to offer a suitable post where one exists constitutes a breach that may be sanctioned.

5. Protection against dismissal

The law expressly provides for protection against dismissal linked to the reclassification procedure (Art. L.551-2): dismissal is null and void:

• from the day the Joint Commission is referred;
• until the end of the 12th month following notification of the compulsory internal reclassification decision.

This protection is directly grounded in statute — it does not rest on judicial interpretation.

6. Compensation linked to reclassification

Internal reclassification: compensatory allowance

If the new post results in a reduction in pay, the employee is entitled to a compensatory allowance intended to partially offset this loss (Art. L.551-2). The calculation rules are set by the Joint Commission in its decision.

External reclassification: lump-sum for small employers

Where the employer has fewer than 25 employees and therefore cannot carry out internal reclassification, a lump-sum payment may be made to the employee, calculated on the basis of their seniority (Art. L.326-9 CSS). This payment is separate from standard dismissal compensation.

7. The professionalisation placement

The professionalisation placement is offered by ADEM to jobseekers meeting the following criteria (Art. L.524-1):

• be at least 30 years old, or be in external reclassification, or be a recognised disabled employee;
• be registered as a jobseeker for at least one month.

Duration

The placement lasts a maximum of 6 weeks, extended to 9 weeks for highly qualified profiles (defined as having successfully completed at least 3 years of higher education).

Remuneration during the placement

The placement is unpaid as a salary. Insured unemployed persons retain their unemployment benefit, increased by a supplementary allowance paid by ADEM (Art. L.524-1).

8. The reinsertion-employment contract

The reinsertion-employment contract may follow the professionalisation placement. Its maximum duration is 12 months (Art. L.524-7). It is a full employment contract, enabling jobseekers to re-establish themselves in a company within a secure framework.

9. Other schemes for specific groups

Young people under 30

Specific schemes exist for young jobseekers:

• the employment support contract (contrat d'appui-emploi — Art. L.543-1);
• the initiation-to-employment contract (CIE) (Art. L.543-14).

These contracts aim to facilitate entry into the labour market for young people with no work experience or an insufficient career background.

People facing particular difficulties in finding employment

Occupational insertion or reinsertion activities may be organised for people who encounter particular difficulties in finding employment (Art. L.591-2). These activities are managed by ADEM and may include training, work placement simulations or intensive support.

Recognised disabled employee status

The status of recognised disabled employee, granted under the procedure set out in Art. L.561-1, confers specific rights regarding reclassification and access to reinsertion schemes. It is distinct from a simple medical assessment and requires a formal recognition procedure. See the workplace accidents and occupational diseases guide for the access conditions.