Are you looking to expand your business to Luxembourg? Are you considering hiring employees from Luxembourg to support that expansion?
You may be wondering how to do it legally and hassle-free. Don’t worry - we’ve got you covered. With the proper guidance, you can make sure you hire compliantly. Let’s explore why hiring talent from Luxembourg is a great idea, how to hire an employee in Luxembourg legally, and what an EOR does to make the process easier.
Hire Talent from Luxembourg
Hiring talent from Luxembourg can be a great way to grow your business and gain access to a talented pool of professionals. With its modern infrastructure, dynamic economy, and attractive tax incentives, Luxembourg is an ideal location to hire employees from.
Tax Incentives
Luxembourg has some of the most favorable conditions for businesses when it comes to taxes. This makes it attractive for companies looking for cost savings. This is especially true for those who are looking to set up an Employee Owned Structure (EOS), as these structures allow businesses to take advantage of attractive tax rates when hiring employees in Luxembourg.
World-Class Education
The country is also home to some of the best universities in Europe, meaning that employers have access to highly-skilled graduates with world-class qualifications. Additionally, many international firms have their European headquarters located here, so there is no shortage of experienced professionals available too.
Multilingual Workforce
English, French, German, and Luxembourgish are spoken in Luxembourg. With such a multilingual workforce, employers can pursue more international business opportunities. This also adds diversity to your workplace.
Government Subsidies for Training
Finally, Luxembourg offers many incentives and benefits for employers hiring staff members locally such as government subsidies towards training programs or employee development initiatives. These benefits help ensure that employees stay motivated and productive throughout their tenure with your business.
Hire an Employee Legally in Luxembourg
Setting up an entity to hire employees in Luxembourg is not a straightforward process. The first step of the process is to obtain an Employment Office Registration (EOR) number from the Ministry of Labour, Social Affairs, and Solidarity in Luxembourg.
The next step in the hiring process is to draft an employment contract for each employee being hired. This document should include information about job duties, hours of work, salary, vacation time, and other benefits that may be offered by the employer.
To skip all these complications and save money, you can hire employees in Luxembourg through an Employer of Record (EOR) like Borderless. Hire the talent you deserve, quicker.
What Does an EOR Do?
An EOR is a third-party HR department. EORs help to ensure that companies are compliant with labor laws and related regulations in Luxembourg. It also helps employers keep track of different types of workplace activity, including wages and salaries paid to employees as well as vacation. The official national holidays in Luxembourg are:
- January 1: New Year’s Day
- April 10: Easter Monday
- May 1: May Day (Labor Day)
- May 9: Europe Day
- May 18: Ascension Day
- May 29: Whit Monday
- June 23: National Day (Grand Duke’s Birthday)
- August 15: Assumption Day
- November 1: All Saints’ Day
- December 25: Christmas Day
- December 26: Saint Stephen’s Day (Saint-Étienne)
EORs can help to ensure compliance with taxation rules and regulations in Luxembourg. Furthermore, EORs provide employers with essential information and cultural knowledge about requirements when recruiting employees from Luxembourg. EORs help keep documentation used for payroll calculations and other administrative purposes relating to workforce management too.
What Are Your Responsibilities?
While an EOR undertakes many HR functions, employers are still responsible for recruiting, onboarding, and training employees. Performance management, career development and growth, team management, retention, and communication will also fall on your plate. Employers must also take care of staff in Luxembourg as they would in the country they call home.
Indeed, the relationship between you and your employees won’t be all that different with an EOR. However, the relationship is all you need to focus on instead of hours of paperwork with an EOR like Borderless.
What Are the Advantages of Going Through an EOR in Luxembourg?
Going through an EOR in Luxembourg offers many advantages to employers. Firstly, hiring through an EOR simplifies the administrative process and provides employers with access to a wide range of services provided by the EOR. This includes information on wages, salaries, and working conditions; advice on collective bargaining agreements; and assistance with labor disputes.
Having an EOR also ensures that employers are compliant with all relevant laws and regulations, including those related to minimum wage requirements, taxation rules, social security contributions, and labor laws.
Finally, going through an EOR provides employers with peace of mind knowing that their business is running smoothly and that their operations are compliant with Luxembourg law. By hiring through an EOR, employers can ensure that they remain compliant with relevant legislation, and be rest assured knowing that they are hiring employees in a safe environment that offers protection for both parties involved.
How Do I Choose the Right EOR for Me in Luxembourg?
When choosing an EOR in Luxembourg, it is important to consider several factors.
- Reputation - Ensure that the EOR they choose is compliant with all relevant laws and regulations. Research their reputation and history – are they up to date with the latest developments in Luxembourg labor law? What are their reviews like?
- Business needs - Employers should take into account their own business needs when selecting an EOR. For instance, if the employer plans to hire foreign nationals, then they should hire an EOR with experience with double taxation agreements apply to minimize costs and ensure compliance with local tax law. Do the services they offer meet the needs of your business?
- Communication - Are they communicative? Is there a point of contact or any form of customer support if you have a pressing question? Ensure that your EOR of choice meets your communication needs.
- Data protection - Ensure that your EOR of choice has proper data policies in place to protect sensitive information.
Borderless: Go Global with Borderless
Hire in Luxembourg with Borderless. Manage employee payroll and benefits while eliminating the costs and headaches of international compliance when hiring from Luxembourg.
Book a demo today and see how we can help you hire from Luxembourg in minutes. Unlock new opportunities with an all-in-one compliance platform
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
