L&E Global’s 2017 Global Handbook | Employees vs Independent Contractors
Amongst others, this implementation entails the introduction of a shared responsibility between a contractor and a sub-contractor including other companies involved towards posted employees and/or unions filing a claim for employees concerned.
These provisions introduce a new ICT permit type and also amend the currently existing types of work permits for third-country nationals.
A draft law number 7016 on flexible working time arrangements was introduced on July 27th, 2016. This draft bill has been voted on and published as the law dated 23 December 2016. The new legal provisions tend to limit the employer’s flexibility concerning the organisation of flexible working time systems.
The employees’ salary is increased by 2.5% as from January 1st, 2017. The new index is 794.54.
the minimum social salary will increase by 1,4% as of 1 January 2017; the salary for non-qualified employees will rise to EUR 1,949.86 per month (i.e. an increase of EUR 26.90) and for qualified employees it will rise to EUR 2,339.84 per month (i.e. an increase of EUR 32.28). Luxembourg has one of the highest minimum social salaries of all the EU member states.
The draft bill n° 6892 on the equal treatment of men and women has been voted by the Chamber of Deputies including new labour law provisions.
A draft law number 7016 on flexible working time arrangements was introduced on 27 July 2016. The current legal provisions will no longer be in force from 1st January 2017.
Pursuant to EU and Luxembourg case law, the simple change of service provider by a company can entail the application of the TUPE regulations in place (and thus an automatic transfer of the employment contracts). A recent decision does however no longer highlight the aforementioned distinction and employers active in Luxembourg should be aware of the risk that, even if an activity is mainly asset based (rather than manpower related), Luxembourg courts tend to consider that the TUPE regulations should also apply if the new service provider takes over employees. In such a case, all in-scope employees’ employment contracts would then automatically be transferred to the new service provider and would either have to be (i) terminated or (ii) the employees granted the rights they had before during the relationship with the former service provider.
From 1st February 2017 on, the employer’s right to request the presentation of a criminal record will be limited, pursuant to the new law of 23 July 2016. It will then be much more difficult for an employer to request a criminal record.