The law of March 14 2017 – which amended the Labour Code and Article 3 of the Law of June 17 1994 laying down measures to safeguard employment, price stability and business competitiveness – entered into force on March 24 2017.(1)
The law transposes into national law EU Directive 2014/67/EU on the implementation of EU Directive 96/71/EC concerning the Posting of Workers in the Framework of the Provision of Services.
The law made the following key changes to the Labour Code:
- Company responsibility in subcontracting chains has been strengthened via the establishment of a mechanism regarding the joint and several liability of all companies involved.
- An electronic platform has been introduced for posting arrangements, following the previous implementation of administrative practices.
- New documents are required from posting companies, which will ensure that posted employees receive payment of the wages due for the actual hours worked.
- Administrative collaboration at the national level has been strengthened. The roles of the Directorate of Immigration, the Department of Public Works, the Public Roads Administration and the Administration of Public Buildings have been combined with the supervisory roles of the Inspectorate of Labour and Mines.
- Effective redress mechanisms have been introduced to enable posted employees to lodge complaints or initiate legal proceedings before the Luxembourg courts, directly through or with the agreement of trade unions, even if the employee has since left Luxembourg.
- Administrative penalties have been introduced for infringements of the provisions on the posting of employees. Such offences are punishable by an administrative fine of between €1,000 and €5,000 per seconded employee, although the total amount of the fine cannot exceed €50,000.
- Rules governing the cross-border enforcement of administrative penalties and fines between the Grand Duchy and another EU member state have been introduced.
- It is now possible for the Inspectorate of Labour and Mines to close a site for serious labour law breaches.
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 protected] or [email protected]). The Castegnaro website can be accessed at www.castegnaro.lu.
(1) The law of March 14 2017 concerning the posting of employees is available here.