Requirements for Foreign Employees to Work
- EEA Nationals
EU citizens are entitled to reside in Luxembourg for more than 3 months if they meet one of the following conditions: i) they work as an employee or are self-employed; ii) they have the resources required to ensure that they or their family members are not dependent on the social welfare system and also have medical insurance; iii) they are registered with an approved public or private education institution in Luxembourg, and are attending a full-time educational course or, in this context, a professional training course. In this case, they must be able to demonstrate that they have the resources required to ensure that they or their family members are not dependent on the social welfare system and also have medical insurance.
Within 8 days of their arrival in Luxembourg, EU citizens must make a declaration of arrival at the administration of the municipality where they intend to establish residence. EU citizens must also complete a registration form in the same municipality within three months of their arrival in Luxembourg. A secondary activity of less than 10 hours per week is not sufficient to receive an authorisation to stay for a salaried worker. After five years of residence, EEA nationals can ask for a permanent residence permit from the Immigration Directorate of the Ministry of Foreign and European Affairs.
- Non-EEA Nationals
A third-country national who wishes to work in Luxemburg must have a stay permit (serving as work permit). Applicants must send their application to the Immigration Directorate of the Ministry of Foreign and European Affairs. They must state their identity and the exact address in their country of residence and add several documents depending on the type of permit they are applying for. The types of stay permits for which a third-country national can apply are the following: i) work permit for an occupation of less than three months. ii) work permit for an ancillary occupation for people who have obtained a residence permit for private reasons. Iii) work permit for an ancillary occupation for a third-country national family member of a third-country national. iv) work permit for a highly qualified employee for an occupation of more than three months. After five years of residence, non-EEA nationals may apply for long-term resident status from the Immigration Directorate of the Ministry of Foreign and European Affairs.
Does a Foreign Employer need to Establish or Work through a Local Entity to Hire an Employee?
No. In Luxembourg, an employer has to pay social security contributions when hiring employees. In order to be able to pay these contributions, the employer has to file an operating declaration with the Joint Social Security Center (CCSS) in order to register as an employer. This may also be done by a foreign entity. The employer has to submit an operating declaration within 8 days of the date of entry of the first employee.
Limitations on Background Checks
The employer is allowed to ask the candidate to submit a criminal record no 3. This request has to be submitted in writing and has to be expressly motivated by the specific needs of the proposed position. Furthermore, this request must already be indicated in the job offer. The employer can only retain the criminal record no 3 for one month after the conclusion of the employment agreement. If the candidate is not hired, the criminal record no3 has to be destroyed immediately. During the employment relationship, the employer can only ask employees to hand over a recent copy of their criminal record (certificate no 3) if specific legal provisions provide for this possibility. However, the employer can request a recent copy of a criminal record (certificate no 3) if the employee receives a new assignment, justifying a new evaluation of the employee’s good repute, in relation to the specific needs of the position, and the criminal record cannot be retained, after its issuance, beyond a period of two months.
Restrictions on Application/Interview Questions
In Luxembourg, before recruiting an employee and drawing up an employment contract, employers must first register the vacant position to the National Employment Administration. The employer is also required to inform the Luxembourg Social Security Services within 8 days of the recruitment and register the employee. During the recruitment process, the employer may use different techniques such as a job interview or a selection test. The employer can also request an excerpt from the criminal record, which can be kept by the employer for a maximum period of 2 months.