Luxembourg Recruiting & HiringReading Time: 4 minutes
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, Globalization Partners 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
Luxembourg is the smallest country in the European Union (EU), and its people are proud that they are a separate country. Understanding cultural norms and business etiquette in this nation can help you recruit the best employees and run a successful business abroad. Here are four steps you can take while recruiting to show that you know about the country’s culture.
1. Respect the Hierarchy
As a proud nation, Luxembourgers value politeness and respect for the hierarchy. Do not criticize or devalue the country’s independence — if you do, you’ll quickly lose potential candidates.
2. Be on Time
Lateness is considered very rude in Luxembourg, so you should always be on time for interviews and other meetings. All business meetings tend to be brief, with just a little small talk before work starts. Always follow the right protocol and rules of conduct. Typically, Luxembourgers will make decisions before a meeting, then finalize them and give further instructions during the gathering.
3. Avoid Pressure Tactics
When you’re negotiating with a potential candidate, don’t rush the process. Instead, follow the country’s formal codes and avoid high-pressure strategies. Since Luxembourgers take a rational approach to business, they don’t like emotional outbursts or feeling pressured. Also, avoid making exaggerated claims about the position or your company.
4. Expect Polite Aloofness
Most Luxembourgers will address foreigners politely without delving into personal topics. Keep business and private life separate when you’re negotiating with potential candidates. Most greetings start with a firm handshake, but good female friends might give three light kisses on the cheeks. When you’re doing business, always use last names and formal addresses until the other party asks you not to.
The Recruitment Process 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.
Background Check Limitations
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.
Appropriate Interview Questions
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. Although not legally required, employers almost always create a written agreement for any formal work relationship. 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. Include items such as compensation, benefits, and termination notice periods. This agreement should always outline salary amounts or benefits in euros instead of foreign currency.
Luxembourg Employment Compliance
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. However, some employees can opt for a flextime plan of ten hours per day and 48 hours per week as long as their average weekly hours do not exceed 40 over four weeks. Overtime work is generally not permitted under Luxembourg employment compliance laws, but certain exceptions are based on job title and industry.
How to Onboard Employees
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 Luxembourg Hiring Outsourcing
Luxembourg hiring outsourcing services provide multiple benefits. Globalization Partners 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, Globalization Partners 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 Globalization Partners
If you’re expanding your business to Luxembourg, contact Globalization Partners. Our services will give you the head start you need to succeed.