Luxembourg New Law Facilitates Hiring Third-Country Nationals

Effective September 1, 2023, a new law aims to address the shortage of skilled workers by assisting companies to hire skilled foreign workers.  The key changes are outlined below.

  1. Third-country national family members of third-country national residents are now permitted to work without obtaining a separate work permit.
    • Third-country nationals who have a ‘family member’ residence permit now have free access to the Luxembourg labour market as soon as they arrive on the basis of a temporary authorisation to stay. However, they must take the necessary steps to obtain a residence permit as soon as possible.
      • Third-country nationals holding a ‘family member’ residence permit issued before September 1, 2023, were only authorised to work in Luxembourg if this was explicitly stated on their residence permit and under the conditions set out therein.
      • Since September 1, 2023, they are authorised to work in Luxembourg, regardless of any observations stated to this effect on their residence permit. There are no plans to replace these residence permits which will only cease to be valid on their expiry date. It is only the note or observation on the back of the permit that ceases to be valid from September 1, 2023.
  2. The procedure for approving temporary employment for international protection applicants will also be expedited. For asylum seekers whose process has not been completed after six months, as well as for individuals whose deportation has been postponed or cancelled, the National Employment Agency (ADEM) will no longer conduct a job market test when granting approval for temporary employment.
  3. The period of validity of residence permits issued from this date for the purposes of job search or business creation has been extended from nine to twelve months.
  4. The process for issuing a certificate permitting the recruitment of third-country nationals will also be simplified.

Additionally, companies looking to hire a third-country national must have reported the job vacancy to ADEM and apply for a certificate that authorizes them to hire the person of their choice.

  • For professions listed as shortage professions, ADEM will no longer be required to conduct a job market test. In such cases, the certificate will be issued within five days of receiving the application.
  • For positions not listed as shortage professions, the job market test will still be conducted, but with shortened deadlines.
    • ADEM now has seven working days to assess the availability of job seekers with the required qualifications for the reported position.
    • If no suitable candidate can be proposed, the certificate will be issued within five working days after the seven-day period has expired.

However, if ADEM can suggest candidates with the desired qualifications, they have an additional 15 working days to provide the employer with placement suggestions.

Erickson Insights and Analysis

Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.