Recruiting and hiring employees in Luxembourg can be complicated. A variety of nationalities dominate the labor market, including Belgian, French, and German workers. Plus, the prevalence of collective bargaining agreements (CBAs) means you have to follow any additional regulations carefully.
Instead of going through the hiring process alone, G-P can help. We understand every aspect of Luxembourg’s employment compliance, and we can help you hire and onboard employees in record time.
Recruiting in Luxembourg
You can use a variety of methods to advertise your open positions, but one of the best options for recruiting in Luxembourg is using online job boards. Websites such as www.jobs.lu and www.jobfinder.lu will give you a place to post your openings and connect with potential candidates.
Another promising option is attending employment fairs. These events occur regularly, and you can attend to share your company, positions, and network with individuals looking for jobs. You can also choose to work with a recruitment agency, but you’ll need to make sure they follow the appropriate staffing and recruiting laws.
Legal & Background Checks
Before recruiting an employee, you’ll need to register all your vacant positions with the National Employment Administration. Once you identify potential candidates, you can conduct an interview or selection test.
You’re also allowed to request an excerpt from an individual’s criminal record — criminal record number three — which you can keep for up to two months. This request must be submitted in writing and relate to the position’s specific needs. You must also indicate the request in the job offer.
Other rules follow:
- You must destroy the criminal record no later than one month after the end of the employment agreement.
- You must immediately destroy the criminal record if the candidate isn’t hired.
- You can ask for a copy of an employee’s criminal record if they receive a new assignment that justifies a new evaluation.
Laws Against Discrimination in Luxembourg
While you’re staffing your Luxembourg business, avoid asking questions about age, sexuality, marital status, politics, religion, health, and racial or ethnic origins. If you ask any discriminatory questions, you could risk prosecution.
After asking your candidates questions, you must allow them to ask about your business and the position. Once the initial interview is over, you and the candidate should agree on the next stages of recruitment, whether it’s additional interviews, tests, a decision deadline, or a request for more documents.
How to Hire Employees in Luxembourg
The process to hire Luxembourg employees starts with an employment contract. Employment contracts must be in writing and outline terms including start date, workplace, nature of work, work schedule, compensation, and paid annual leave. Salary amounts and benefits should be outlined in euros instead of foreign currency. The three kinds of employment contracts include:
- Limited-time contract: Ends after a set period
- Contracts for a specific period: Ends after an employee finishes a particular project
- Indeterminate contract: Ends only after being terminated by the employee or employer and includes notice periods and severance pay
You should draft the employment contract before an employee’s first day in the local language. Any modifications made to the contract after that time require a written amendment signed by the employer and employee.
Luxembourg Employment Laws
Luxembourg unified all of its employment legislation into the Labour Code in September 2006. This code now governs the relationship between an employer and an employee. CBAs are also common in Luxembourg and can include information about everything from minimum wages to working hours for specific industries. When you hire Luxembourg employees, you’ll need to review both the statutory requirements and any CBAs.
A typical workday in Luxembourg is eight hours with a workweek of 40 hours. Overtime work is generally not allowed under Luxembourg employment compliance laws, and when permitted, must not exceed two hours per day or eight hours per week. Certain exceptions do exist based on job title and industry. Employers must also follow a specific procedure for overtime, including notifying the Inspectorate of Labour and Mines of any additional hours being worked.
Onboarding in Luxembourg
Once you hire employees in Luxembourg and write a strong employment contract, it’s time to onboard them. Start by reviewing every detail of the agreement and offer letter before the employee’s first day. Then you can go over any other relevant documents such as a code of conduct, dress code, and more. Your employee should feel comfortable being a part of your company, so take strides to introduce them to others and follow Luxembourg cultural norms.
Benefits of Hiring Outsourcing in Luxembourg
Luxembourg hiring outsourcing services provide multiple benefits. G-P can help you secure top talent and give you the competitive edge you need when first setting up a subsidiary. While you would otherwise need to wait to hire employees in Luxembourg until you set up a subsidiary, G-P shortens the process. We act as your Employer of Record in Luxembourg and hire employees on your behalf to help you start your business in a matter of days.
Work With G-P To Expand Globally
If you’re expanding your business to Luxembourg, contact G-P. Our services will give you the head start you need to succeed.