The Act of 19 June 2025 has created a new chapter in the Labour Code concerning Strategic Workforce and Skills Planning (known by the French abbreviation ‘GPCE’).

Faced with the major transformations in the world of work – whether technological, environmental, regulatory, societal, or linked to the rise of artificial intelligence – occupations are changing rapidly: some are disappearing, others are being transformed or are emerging. These changes have a direct impact on employees, whose skills may become obsolete or unsuited to the new realities of the labour market.

To support these transitions, this legislation is intended to assist Luxembourgish companies which are investing in ambitious training pathways that go beyond traditional vocational training. The objective is twofold: to strengthen employee employability and to prevent the risks of unemployment.

In concrete terms, the Act establishes a co-financing programme for companies and their employees affected by these changes. It targets companies wishing to anticipate developments in their sector and prepare their teams for the skills of tomorrow.

Participation in this new programme remains optional for employers. However, companies wishing to benefit from this training scheme must meet three conditions:

• Have their registered office in Luxembourg;
• Have been carrying out a genuine activity in Luxembourg for at least three years;
• Not be in economic difficulty.

The training programme can pursue two distinct goals under the Strategic Workforce and Skills Planning programme: Upskilling, to enable employees to acquire new skills, and reskilling, to enable employees to retrain for a new position within the company through the acquisition of new skills.

A procedure is explicitly provided by the new legislation so as to benefit from this scheme:

1. Submit an application to the Director of the ADEM (National Employment Agency) to participate in the Strategic Workforce and Skills Planning programme, after informing and consulting employee representatives;
   
2. The Director of the ADEM decides on whether the company is eligible and asks those companies that are to select a consultant or an accredited consultancy firm;
   
3. The consultant or approved consultancy firm carries out a strategic analysis to identify departments and positions undergoing transformation, conduct skills assessments, develop the training plan and estimate the budget. Once this analysis is complete, the training plan must be submitted to the staff delegation for information and consultation in companies with fewer than 150 employees. For companies with over 150 employees, the staff delegation’s consent is required. Finally, the training plan must be submitted to the Director of ADEM;
   
4. Companies have 24 months to implement the plan. They select the training courses for the impacted employees, who must have at least 12 months of seniority. These training courses must meet the requirements set out in the Act, i.e. they must represent a minimum of 120 hours.

The Employment Fund provides co-financing to support companies implementing this training plan. Proportional to the size of the company, this financial support is granted in two phases for the preparation and the implementation of the training plan, respectively.

The co-financing is organised as follows:

Phase	Micro and Small Enterprises (1)	Medium-sized Enterprises (2)	Large Enterprises
Strategic analysis and preparation of the training plan	75% of the costs charged by the consultant or approved consultancy firm. (capped at €900)	50% of the costs charged by the consultant or approved consultancy firm. (capped at €600)	15% of the costs charged by the consultant or approved consultancy firm. (capped at €180)
Implementation of the training plan	50% of direct training costs (capped at €7,500, with a maximum of €250 per impacted employee per training day). 50% of the impacted employee’s salary during training hours (capped at 250% of the Social Minimum Wage for Unskilled Workers).	50% of direct training costs (capped at €7,500, with a maximum of €250 per impacted employee per training day). 25% of the impacted employee’s salary during training hours (capped at 250% of the Social Minimum Wage for Unskilled Workers).	40% of direct training costs (capped at €6,000, with a maximum of €200 per impacted employee per training day). 15% of the impacted employee’s salary during training hours (capped at 250% of the Social Minimum Wage for Unskilled Workers).

(1) Microenterprise: A business that employs fewer than 10 people and generates an annual turnover (or total annual balance sheet) that does not exceed €2 million. Small enterprise: A business that employs fewer than 50 people and generates an annual turnover (or total annual balance sheet) that does not exceed €10 million.

(2) Medium-sized enterprise: A business that employs fewer than 250 people and generates an annual turnover that does not exceed €50 million (or whose total annual balance sheet does not exceed €43 million).

In conclusion, this new scheme, in force since 28 June 2025, will enable companies and their employees to anticipate better the challenges and changes brought about by the inevitable transformation of the job market!