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24 February 2021
Extension of mandatory provisions that employers must respect
Principle of equal treatment in terms of remuneration
Work postings organised by temporary agencies
Extension of information and documents that must be sent to Labour Inspectorate
Exception for road transport sector
The Law of 15 December 2020 modifying the Labour Code in order to transpose the EU Posted Workers Directive (2018/957/EU) was published in Mémorial A 1024 on 18 December 2020 and entered into force on 22 December 2020. This article highlights the main new points of attention for employers and employees.
Employers whose main office is based outside Luxembourg and which are posting workers to Luxembourg within the context of providing cross-border services must guarantee posted workers that they will be covered by the 'social public order' provisions applicable in Luxembourg,(1) which now include:
Employers which post workers must now guarantee employees posted in Luxembourg:
The provisions applicable to secondment have now been extended to temporary employment agencies and companies that provide workers within the context of workforce leasing, which are based abroad, that post employees in Luxembourg for a user company based abroad.
In addition, user companies must now:
If user companies do not respect these obligations, they are liable to an administrative fine (€1,000 to €5,000 per posted worker, which is doubled for repeat offences).
In order to obtain a social ID badge for posted workers, employers must send the following new information to the Labour Inspectorate via the online platform:
In addition, employers posting employees must send the following documents to the Labour Inspectorate via the online platform once the posting has started:
Employers which post workers in Luxembourg for more than 12 months are now subject to additional working and employment conditions.(2) Thus, from the 13th month, posting employers are subject to all legislative, regulatory and administrative provisions and those arising from general obligation collective bargaining agreements or inter-professional social dialogue agreements applicable to work and employment agreements, apart from those relating to:
However, the 12-month term may be extended to 18 months if the posting employer gives notice of this (with reasons) before the end of the 12-month term to the Labour Inspectorate via the electronic platform designed for this purpose.
Workers in the international road transport sector temporarily posted to Luxembourg continue to be subject to the old provisions relating to posting workers.
For further information on this topic please contact Guy Castegnaro or Ariane Claverie at Castegnaro by telephone (+352 26 86 82 1) or email (email@example.com or firstname.lastname@example.org). The Castegnaro website can be accessed at www.castegnaro.lu.
(1) The public order provisions applicable to any employee working in Luxembourg are listed in Article L010-1 of the Labour Code, as modified by the law, and relate to, among other things, remuneration, working hours, paid leave and bank holidays. Article L 141-1 of the Labour Code, as modified by the law, specifically exclude points 1, 8 and 11 of Article L 010-1 of the Labour Code from the provisions of 'social public order' applicable to employees posted to Luxembourg.
(2) The law specifies that if a posted worker is replaced by another posted worker carrying out the same task at the same place, the 12-month posting term corresponds with the combined posting terms of each of the posted workers in question.
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