Find your employer of record in Luxemburg

In Luxembourg, citizens of EU and EEA countries and Switzerland do not need a work visa. However, Croatian citizens need a work permit for their first year in the country. Therefore, contractor management services can help you obtain visas for foreign workers.

Thus, people who need to stay in the country for more than 90 days must go to the local Municipal Office in Luxembourg. Thus, they will have to declare their arrival and intention to stay in the country, during the first week of their arrival. Likewise, they must provide a certificate of domicile registration.

Besides, all foreigners who wish to stay more than 90 days to work in the country need a work visa.

Furthermore, employers in Luxembourg have to have passed the compulsory labor market test. Likewise, before publishing the vacancy, the employer must present it to the National Employment Agency (ADEM). Thus, if after 2 months no EU national has occupied the position, the employer may extend the offer to other foreigners.

However, the employer does not have to go through the market test if they want to hire a highly qualified employee. However, if you must declare the vacant position in the ADEM. In addition, the employee must have a contract signed for more than one year and demonstrate the qualification and the necessary academic training. Additionally, the salary must be 1.5 times the average gross annual salary or 1.2 times for certain professions.

Additionally, for foreigners to receive a work visa, they need a job offer from a local employer before entering the country. Likewise, the contract or offer must be under Luxembourg labor law, an essential requirement for approval. In this way, if the employment relationship between the parties ends, the visa also loses its validity.

VAT in Luxembourg is 17.00%.

Termination Process

The Employer of Record services in Luxembourg allows you to perform employee onboarding but also termination. Thus, this last process depends on how the Employment Contract and the Collective Agreement are in force. In addition, it is determined by the type of contract and the reason for termination.

Employers with more than 150 employees must hold a hearing before terminating an employee. In contrast, in companies with at least 15 employees, the employer must notify the economic committee of the dismissal.

Notice Period

Provisions relating to notice periods may exist in collective agreements. In addition, if these provisions differ from those established by law, the collective agreements prevail. Likewise, the notice period depends on the duration of the service as follows:

• 2 months of notice for employees with less than 5 years of service.
• 4 months of notice for employees with between 5 and 10 years of service.
• 6 months of notice for employees with more than 10 years of service.

However, an employer may pay the employee instead of the notice period.

Severance Pay

The international PEO will inform you about the provisions on the amount and calculation of compensation, which may be established by collective agreements. In addition, if this differs from what is established in the law, both parties must observe the process in the collective agreement. Below, you can see the amount of compensation according to the duration of employment:

• Less than five years of service. No severance pay
• 5-10 years of service. The employee receives 4 months of severance or the employer can extend the notice period by 5 months if it has less than 20 employees.
• 10-15 years of service. The worker receives 2 months of compensation or the employer can extend the notice to 8 months if it has less than 20 employees.
• 15-20 years of service. The employee receives 3 months of compensation or the employer can extend the notice by 9 months if it has less than 20 employees.
• 20-25 years of service. The employee receives 6 months of compensation or the employer can extend the notice to 12 months if it has less than 20 employees.
• 25-30 years of service. The employee receives 9 months of severance or the employer can extend the notice by 15 months.
• More than 30 years of service. The employee receives 12 months of severance or the employer can extend the notice by 18 months.

Probation Period

You will be able to hire and onboard workers in Luxembourg after the trial period, which is a minimum of 2 weeks. In addition, this period depends on the salary and qualifications of the employee as follows:

For employees who receive a salary of at least 4,586.12 EUR, the maximum probationary period is 1 year.

Employees with a professional skills certificate or equivalent must pass a probationary period of a maximum of 6 months.

Employees without a professional skills certificate or equivalent must pass a probationary period of a maximum of 3 months.

Paid Time Offs

Manage paid time off through the Employer of Record in Luxembourg, which is 26 working days of paid vacation per year. Additionally, some workers receive additional leave automatically as follows:

People with disabilities or who suffered a work accident receive an additional 6 days of leave.

Luxembourg employees who work in mines receive an additional 3 days of leave.

An employee or apprentice who did not receive a continuous 44-hour week receives 1 additional day of leave. In this case, you must receive the additional day for every 8 weeks in which you did not receive the rest.

In the same way, collective agreements or employers can give extra paid vacation days.

Public Holidays

There are 11 national holidays throughout the year.

Vacation Holidays

There are 26 vacation holidays throughout the year.

Sick Days

Sick leave consists of a maximum of 26 weeks, which you can properly grant with an Employer of Record in Luxembourg. Also, an employee does not need to provide a medical certificate for a 1 or 2-day illness.

In this case, employees must receive 100.00% of the regular salary payment and benefits up to a certain limit. However, the employee can only enjoy these benefits until the end of the calendar month in which the 77th calendar day of the leave falls. However, in 18 months, the employee receives 11 weeks of fully paid leave. In addition, the employer must add to this the number of days remaining between the 77th day of absence and the end of the month.