Virginie Todesco, Immigration Assistant Manager at Fragomen
Please introduce Fragomen to our AMCHAM Luxembourg readership explaining the background of the law firm and the services you provide.
Fragomen LLP is a market-leader and specialist in immigration and compliance, with almost 6,000 professionals delivering immigration services around the world. Luxembourg Practice: Fragomen’s Brussels office was established in 1999 and provides fully integrated immigration service offerings for Belgium, Netherlands and Luxembourg. The office has an unparalleled depth of knowledge of immigration laws, policies and practices providing immigration application and programme support but also serves as a legal advisor to our clients on immigration laws and regulations.
Fragomen’s Luxembourg Inbound Team has extensive experience supporting clients with the hiring and relocation of foreign talent and their family members into Luxembourg and advising clients in various economic sectors, such as financial services, the pharmaceutical industry, emerging technologies, energy, marketing, retail trade, and insurance. The members of the Luxembourg Inbound Team are committed to integrity, technical excellence, and proactive client support, as well as a strong respect for deadlines. By understanding clients’ corporate culture, preferences, and needs, this team can develop strategic and innovative solutions.
The Luxembourg Inbound Team also maintains close and appropriate relationships with government authorities in Luxembourg and communicates directly with the government on all important matters. As a result, this team can keep clients apprised of changes that might affect their immigration programs.
By passing on first-hand knowledge of proposed legislative and procedural changes alongside focused analysis and advice, the Luxembourg Inbound Team can help clients proactively adapt their immigration programs accordingly.
Please explain the details of the recently revised Luxembourg work permit requirement rules for hiring spouses, partners and family members.
Effective September 1, 2023, Luxembourg relaxed work and residence rights for certain types of foreign nationals and sped up work certificate processing allowing dependents of foreign national residents to work without arranging a separate work permit (as was previously required). This right to work remains valid as long as the individual retains their family member status.
Please compare the current work permit requirement situation in Luxembourg with the requirements in other European countries.
Luxembourg’s recent rule change on dependent work authorisation has brought the country in line with most EU Member States. Luxembourg’s rules for dependents are now relatively generous in comparison to other EU countries, providing unlimited access to the labour market based on dependent status. This means that, unlike the principal, dependents are not restricted by labour market testing, sector, profession or employer-specific requirements. Per Fragomen data analysing the top two employment-based permit types in 38 European countries:
- 20 out of 38 European countries allow dependents automatic work authorisation rights under their dependent status (including Luxembourg)
Further, Luxembourg’s scope of definition of “dependent” is in line with other EU Member States, but also with other European countries not members of the EU, such as Norway, Switzerland and UK:
- 26 out of 38 European countries recognise same-sex spouses as dependents (including Luxembourg)
- 31 out of 38 European countries include adopted children or stepchildren as dependents (including Luxembourg).
- What has been the reaction of companies to this change? Has it helped HR departments with recruiting?
The reaction has been largely positive as the rule change broadens the pool of talent from which companies can recruit. Additionally, the new rule makes an assignment or permanent move to Luxembourg more appealing as the accompanying dependent does not face hurdles in entering the labour market themselves. Due to the recent nature of the rule change, many companies have not yet had the opportunity to hire many employees benefitting from this status.
The rule change requires employers hiring individuals on dependent status to track the principal’s status and the marital status. Broadening dependents’ rights also has an impact on various aspects such as access to the local healthcare and social security system, taxes or/and government benefits. Employers hiring employees with dependents should consider these factors and consult the appropriate experts in these fields to provide a comprehensive advisory package.
What has been the reaction of job seekers impacted by this policy? Has this change made it easier for them to enter employment?
At a time when countries are seeking to attract and retain talent to address labour market shortages, ensuring labour market access for individuals already present in a country’s labour market, such as dependents, is welcomed.
Family issues surrounding spouse and partner employment are some of the most frequent causes of concern during proposed relocations. Whether a partner can work in the destination country may hinge on the person’s marital status, whether they are in a same-sex marriage or partnership, whether they are considered ‘immediate’ family member, and other factors that vary around the world based on differing immigration laws.
Luxembourg’s rule change has made it easier for dependents to enter the labour market, as employed or self-employed, and removed administrative burdens for changing permits thereafter. Dependents have expanded options to work flex jobs and/or start a business.
Has this change of rules enhanced Luxembourg’s attractiveness to potential new employees and employers?
For many businesses, the rights of dependents of employees are important and a key consideration for relocation to Luxembourg. When choosing to relocate, families often heavily weigh the option of both partners being able to work in the destination country, ideally being able to work upon arrival without additional administrative requirements to change to a work authorised status.
The rule change in Luxembourg means that a dependent may search for a job prior to arriving in the country and be work ready from the day they enter the country.
Please confirm if Luxembourg’s work permit rules are the most beneficial and generous currently available in Europe.
Luxembourg has an attractive immigration framework and in recent years welcome changes have come into force, seeking to reduce the administrative and procedural burdens associated with immigration applications. However, Luxembourg rates highly in Fragomen’s Restrictive Practices data (see Restrictive Practices heat map) which tracks the relative ease of hiring or transferring foreign nationals.
Highlights of beneficial provisions in Luxembourg include:
- Lowering of EU Blue Card salary in 2024 resulting in a wider pool of talent who may benefit from using this pathway.
- Unlike most EU countries, there are no application fees for government processing. The only costs associated are for permit issuance (80 EUR).
- Applicants directly apply for their immigration permits. There is no requirement for an employer or third party to apply on their behalf. Applicants require only an employment contract to kickstart the process.
- There are no in-person checks which speeds up the immigration process.
- Medical checks are conducted in-country, again speeding up the immigration process.
- A visa is needed only for travel, removing the requirement for visa-exempt nationals to secure a visa during the immigration process.
Please share with our readers any other work permission rules offered by other EU countries or globally which you recommend be allowed in Luxembourg.
Luxembourg already has a beneficial immigration framework. Nevertheless, improvements would enhance its attractiveness, in particular, increasing the speed to ground for foreign nationals to begin work. Fragomen’s Work Ready data (see Work Ready Heat Map attached) rates Luxembourg in the middle in comparison to peer EU countries when it comes to the median days taken to become work authorised from the moment of case initiation.
To increase Luxembourg’s attractiveness as a preferred destination for business, Fragomen recommends the following:
- In-country change of status – generally not permitted in Luxembourg.
- Tourist/business visitor to work authorised – around two thirds of EU Member States allow change of status from tourist/BV to work authorised in-country (excluding Luxembourg), most limit it to visa-exempt nationals.
- Student to employment-based – some countries like Belgium and Denmark allow in-country change of status to employment-based, and immediate work start while application is pending.
- Introduce a recognised sponsor/trusted employer scheme. Luxembourg already requires businesses to register with the Trade and Companies Register and/or the Luxembourg Business Register to operate in the country. The Netherlands’ Recognised Sponsor Scheme benefits include faster processing times and lower evidentiary document requirements.
- Student work rights. In Luxembourg, student permit/visa holders are authorised to work for up to 15 hours per week. Separate work authorisation is required for work over 15 hours per week. Most EU countries allow at least 20 hours of work per week and often allow full time work over holiday periods. As students often work in shortage roles in hospitality or tourism, expanded work rights would be beneficial.
- Graduates job seeker permit. In Luxembourg, after completing their studies, students can obtain a job search permit valid for up to nine months to seek employment. Over half of EU countries provide a period of at least 12 months. Additionally, in Luxembourg the application process is cumbersome as it entails applying for a Private Reasons Permit and a separate work permit exemption for an occupation in line with diploma received from studies.
- Government processing times. Luxembourg government processing times are relatively long (2-4 months) in comparison to other EU countries (see Fragomen’s Work Ready Heat Map attached).
- Facilitating intra-company short-term assignments and service provision for up to three months by installing a general work permit exemption for such moves. A similar exemption exists in France for individuals working in specific fields.
- Immigration pathways for low and medium skilled workers in critical sectors – such as the ones relevant to the green and digital transitions.
- Talent Partnerships – closely monitoring the EU initiatives and joining EU Talent Partnerships of relevance for Luxembourg to develop, attract and facilitate the immigration of non-EU talent.
- Right to work verification. Few EU countries (including Luxembourg) have government-mandated procedures for verifying an employee’s right to work yet have comprehensive fines and penalties for illegally employing foreign nationals. For example, in the Netherlands employers must complete a right-to-work check and identity check before the first day of work for all nationals (including Dutch nationals).
- Digitisation and original documentation requirements. In Luxembourg, initial permit applications cannot be submitted online, only renewals. This is due to the immigration process for initial permit application being paper-based and the requirement to provide original or notarised documents for the immigration application. Unlike many EU countries, in Luxembourg it is not possible to apply for the initial immigration application online or follow the application status online.
Interested in other perspectives? Read what Sylvie Schmit, Managing Director of European Relocation Services and Laurent Peusch, Head of the Employers Services at ADEM have to say about the new spouse work permit law.
