Payback clause
- Name of the instrument - Local language
- Remboursement par le salarié des frais de formation
- Name of the instrument - English translation
- Payback clause
- Scheme ID
- 146
- Country
- Luxembourg
- Reporting year
- 2020
- Type of instrument
- Payback clause
- Sub-type of instrument
- Payback clauses are possible within set limits
- Type of entry
- Single instrument
- Short description
Employers and employees can agree on a payback clause for training-related costs. The law establishes minimum standards that should be considered for the design of agreements between social partners or within companies. Conditions on payback clauses established in the Labour Code can be amended or replaced by collective agreements at the sectoral or company level provided that such conditions are less strict than the national regulations. Employees can be requested to reimburse the cost of employer-financed training incurred in the last 3 years if the employment contract is terminated on the initiative of the employee or by the employer due to a serious instance of employee misconduct. The employee cannot be obliged to reimburse training that benefits the company only (compulsory or firm-specific training).
- Level of operation
- National
- Name of a part of the country
- Not applicable
- Name of the region (for regional instruments)
- Not applicable
- Name of the sector (for sectoral instruments)
- Not applicable
- Relevance
- Further instrument
- Legal basis
- Labour code, 2011, Book V, Title IV, Chapter 2, Section 2, Art. L.542-15 to 19. Case law from the labour courts.
- Objective(s) and target(s)
- Reduce employers' risk of investment in VET in case of mobility of employees.
- Year of implementation
- 1999
- Operation/management
- The law establishes minimum standards that should be considered for the design of agreements between social partners or within companies. Conditions on payback clauses established in the Labour Code can be amended or replaced by collective agreements at sectoral or company level provided that such conditions are less strict than the national regulations. Regulations at national level are applicable and enforceable when no other agreement applies.
- Eligible group(s)
- All employers
- Group(s) with preferential treatment
- No preferential treatment
- Education and training eligible
- - Adaptation of the qualifications of the employee and the company director by upgrading their technical skills and organisational skills, production or marketing. - retraining of the employee and the company manager for access to another occupation
- Source of financing and collection mechanism
- Employer funds training, employee provides (partial) repayment eligible training costs in case of premature depature of the company
- Financing formula and allocation mechanisms
- Employees can be requested to reimburse the cost of employer-financed training incurred in the last 3 years if the employment contract is terminated on the initiative of the employee or by the employer due to a serious instance of employee misconduct. The employee cannot be obliged to reimburse training that benefits the company directly (compulsory or firm-specific training) Redemption: the employee has to reimburse 100% of the cost incurred in the current year; 60% for the second year and 30% for the third year; the amount to be reimbursed is reduced by 1 240 per year and the training cost must be higher than this figure for payback clauses to become applicable. For a contractual retention period of 2 years the cost of training would have to amount to at least 2 480 and for 3 years - at least 3 720. The longest period of payback clause validity is 3 years and the amount owed to the company can be paid in one or in several instalments, according to the stipulations in the Labour Code.
- Eligible costs
- Not available
- Volumes of funding
- Not applicable
- Beneficiaries/take up
- Not applicable
- Organisation responsible for monitoring/evaluation
- Not applicable
- Most relevant webpage - in English
- Not available
- Most relevant webpage - local language
- Not available
- Recent changes
No recent amendment
Recent changes in response to COVID-19
No changes
- Sources
- http://www.legilux.public.lu/leg/textescoordonnes/codes/code_travail/Co…
- http://www.lifelong-learning.lu/View/Document-Cofunding/notice-explicat…
- http://www.impotsdirects.public.lu/legislation/LIR/Loi_modifi__e_du_4_d…
- http://www.impotsdirects.public.lu/legislation/LIR/Loi_modifi__e_du_4_d…
- Short description
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Most relevant webpage - in English
- Most relevant webpage - local language
- Recent changes
- Sources