How to hire an employee in Luxembourg
This guide explores how to properly publish a vacancy, select a candidate for the position, and avoid violating
Finding and hiring employees is an important stage in the development of any business and a complex process that requires complete immersion. It is important to know which specialists are needed at the moment, which ways to use, how to hire employees outside the EU and many other nuances.
2-3 monthsA number of factors, both internal and external, can cause the need to hire a new employee.
What to consider when a vacancy occurs
- The employer must first consider and recruit its former employees when a new vacancy arises in their field.
- The employer must first notify the ADEM and then its temporary employees of the vacancy (if the vacancy is for a permanent position).
Once the budget, the required profile and the urgency of the selection have been determined, the employer must submit a declaration of vacancy to the ADEM (National Employment Agency in Luxembourg).
How to submit a vacancy in ADEM
- Fill out the form on Guichet.lu and send it to ADEM at least 3 days before the public announcement of the search (in the media, on specialized portals).
You can submit a notice under the "Declaration of a vacant position" section using the online submission form.
- Wait for a reply from the ADEM upon receiving the declaration of vacancy.
The National Employment Agency sends an e-mail confirmation to the employer with the name of the consultant responsible for all recruitment matters.
- Find an employee within 2 months
The vacancy is valid for 2 months, after which it will be automatically closed. If you have not found the right candidate during this period, you should contact the ADEM support service and request an extension by e-mail at employeur@adem.etat.lu or by phone at +352 247-88000.
- Post the vacancy on EURES, the European Job Mobility Portal
After notifying the ADEM, employers who want to extend their search on the European market can use EURES.
When a vacancy occurs, employers should first consider and hire their former employees if a new position opens up in their professional profile.
The order of priority applies only to:
- Employees who have announced the end of maternity (or adoption) leave to focus on their children's education;
- Employees laid off for economic reasons;
- Employees with a CIE contract (contrat d'initiation à l'emploi) who have become unemployed.
The employer cannot hire another candidate with the same qualifications, preferring the new candidate's professionalism and expertise. Only if the former employee is totally unsuitable for the new vacancy is it possible to hire a new candidate. However, priority in the consideration of candidates is not a guarantee of re-employment. In addition, the priority order does not apply to:
- Dismissed for personal reasons and at their own request;
- Dismissed at the end of maternity leave, unless the reason for dismissal was related to the need to devote full time to the education of children;
- Dismissed at the end of a fixed-term contract that has not been renewed;
- Trainees and interns, unless it has been decided to transfer them to the workforce as full employees.
It is the employer's responsibility to follow the procedure of preferential employment. And if he violates the procedure, he may be required to pay damages to the former employee.
Any employer, whether legal entity or sole proprietor (self-employed), must notify ADEM at least 3 days prior to publication in various sources.
There are basic steps an employer must take when submitting a job posting. The number of steps may vary.
- Indicate the sector to which your company belongs
For example, private, public, social initiative. Depending on the sector you choose, the following steps will differ. For instance, if you select the private sector, you will also need to indicate whether you are an employment agency, whereas if you select the public sector, you will be immediately prompted to enter the employer details.
- Provide employer information
Company name, identification number, website address. Note that the identification number is the employer's registration number. It should be 11 or 13 digits, for example 2643030177941.
- Fill in the job details
Title of the vacancy, description of the vacant position, job description document, type of contract.
- Fill in the requirements of the candidate profile
Required education and qualifications, language skills, etc.
Once ADEM has been notified, you can post the position to all available sources that may be helpful in finding a professional.
Specialized portals
Career fairs
Recruitment agency
Social media and company website
Mass media
Search through referral links
When an employer starts to search for a candidate for a vacant position, there is a specific goal in mind — the selection of a person from a variety of applicants who will best meet the requirements of the vacant position. This usually involves assessing the knowledge, skills, abilities, and psychological profile of potential candidates. Employers usually perform this task in-house or hire recruitment agencies.
When searching for the right candidate, employers need to have an up-to-date hiring strategy that may include:
It is conducted on the basis of the candidate's resume, cover letter, and curriculum vitae (СV). Sometimes this stage also includes a small test task (often technical, less often logical) to weed out irrelevant answers.
Analyzing the information provided by the applicant, the employer or recruiter evaluates the work experience in the profile and results, language skills, professional knowledge, education received, and tries to determine the degree of coincidence with the corporate culture in order to make a decision on further interaction with the candidate. If there is a technical test task, it allows a partial assessment of the candidate's hard skills.
The result of this stage is a shortlist of candidates for the position who will be invited to interview. All others should be informed that they are not being considered for the vacancy. Often, candidates are asked to keep their resumes for future recruitment.
At this stage, the company representatives get to know the selected candidates personally. Depending on the company's structure, the interview may be conducted by HR and/or a subject matter expert together with the decision maker. Or it may be 3 different interviews, with each expert evaluating the candidate and sending their observations to the decision maker.
At the same time, the interview may include part of a literal interview, where you are asked to tell in chronological order about work experience and tasks solved, and after such a talk there is a test of skills. However, usually 2 different people — a recruiter and a subject matter expert — conduct 2 different interviews: one on work experience and one on skills. Then they send their observations to the decision maker. After that, a list is made of those who will have a final interview with him.
There are a number of prohibited topics during the interview: orientation, family situation, age, union membership, political and religious beliefs, racial or ethnic origin, health status. Questions on these topics should be avoided, as it is possible to receive a lawsuit from a job seeker whose rights have been violated.
Those conducting the interview should give you the opportunity to ask questions that the candidate is interested in: the business, the position and responsibilities, and the organization of the team.
The result of this stage is an agreement with some of the candidates on the next steps: it may be a test, an additional interview, submission of additional documents, a trial day, etc.
Before sending an offer, it is advisable for the employer to complete the necessary formalities. Ask the candidate to complete the KYC process, during which they should submit the necessary documents (the list varies in each specific case, it is better to check with lawyers).
It is also advisable to ask the candidate for the contact details of references who can be contacted to confirm the candidate's professional history and personal qualities. However, it is important to remember that the collection of personal data from candidates must be accompanied by their unconditional consent.
The result of this stage is to have all the necessary information about the applicant to make a final decision and send an offer.
You can formalize your intent to hire a candidate by submitting a job offer or hiring commitment (commitment to hire or letter of commitment).
Offer
Commitment
The result of this stage is the intention and willingness to sign an employment contract with the selected candidate.
Any employer who intends to hire an employee will sign an employment contract with the employee before the employee starts work or on the first day of work.
An employment contract is an agreement between the parties whereby one person agrees to work for and perform the duties of another person in exchange for compensation.
It is recommended to conclude the employment contract in writing in 2 copies (for the employee and for the employer), although the legislation recognizes the oral form.
There are two main types of contract in Luxembourg: the CDI, or permanent contract, and the CDD, or fixed-term contract. A CDI is usually issued for permanent employment in the country.
CDI or permanent employment contract
CDD or temporary employment contract
Collective agreements
Employers must file a declaration of employment (déclaration d'embauche) with the Centre commun de la sécurité sociale (CCSS) within 8 days of hiring an employee.
How to submit a declaration to CCSS
- Submit an electronic entry declaration via SECUline
The "DECAFF" file must be completed as soon as the employment contract is signed and the employee's valid social security number is registered. If the number is not available, it must first be obtained using the "DEMMAT" file.
- Wait for a response from CCSS via mail
Confirmation is automatically sent to the employee and employer after registration. If an error is made in completing a file, it is rejected and returned to the company with the reason for rejection.
Once prospective employees agree to the terms of their contract and sign it, the employer can begin onboarding them.
There is no standard adjustment process in Luxembourg, as each employer organizes the process based on its corporate values.
However, without adaptation, the employee is much slower to engage in the work process, so this stage is considered mandatory for successful employment. To this end, some companies organize virtual days for a gentler immersion in the process.
A couple of weeks later I received a response that the employer was happy with my code. Then, they looked at the work of other candidates and selected several people for a virtual session. That's a kind of full-time workday with complete immersion in work and real tasks, except it's done remotely. It's quite an interesting experience.
In the process of adjustment it is important to explain all organizational aspects to the employee well: to conduct a full briefing on what and how to register, when the salary will be paid, how to plan and apply for leave and other similar issues.
Frequently Asked Questions (FAQ)
How to publish a vacancy in Luxembourg?
ADEM must be notified at least 3 days prior to the open publication of the vacancy, e.g. on specialized websites.
How to hire a foreign employee in Luxembourg?
It is possible to find workers both in the EU/EEA and in "third countries". In the latter case, it is necessary to obtain a certificate from the ADEM authorizing the recruitment of such a specialist. For professions recognized as scarce (most of them in IT), such a certificate is issued within 5 days. For non-shortage occupations, the process takes a little longer. The list of professions is available on the ADEM website.
How to obtain a certificate from ADEM for a "third country" employee?
You can request a certificate as soon as a vacancy is advertised or at any time during its validity period (2 months from the date of publication). To do so, you must leave a request for a certificate by contacting the ADEM Foreign Labor Department by e-mail at info.moe@adem.etat.lu.
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