Luxembourg: Relaxed Work and Residence Rights for Certain Foreign Nationals, Application Processing Times Reduced

Relaxation of right to work for dependents.

• • • As anticipated, family members of foreign national residents (including spouses and registered partners) can now work without obtaining a separate work permit (as was previously required).
    • Individuals who currently have their own work permit are unaffected by these changes.

• Family members moving to Luxembourg can work once they receive official confirmation of their status and have registered at a town hall.
• This right to work remains valid as long as the individual retains their family member status.

• By easing access to the labor market, this change will likely increase the rate of foreign national workforce participation.
• This change will also help attract foreign talent by reducing the challenges inherent in relocating with family members.

Shorter work certificate processing time.

• Processing times for ‘shortage’ and non-shortage work certificates have been reduced.
• Work certificates, also known as Employment Development Agency Certificates, are a prerequisite for hiring a salaried worker.

• ‘Shortage’ list roles. Professions included on a ‘shortage’ list are no longer subject to labor market testing. Accordingly, Agency certificate applications are now processed and issued within five business days (down from the previous 26 days).
• Non-shortage list roles. The Employment Development Agency now has seven days to conduct labor market testing for non-shortage list work certificate applications (down from 21 days).
• If a local candidate is not found, the Agency has a further five days to issue a work certificate (no change).
• If a local candidate is found, the Agency has 15 additional business days to suggest the local employee to the employer (no change).

• Eligible foreign national employees will be able to commence work sooner.
• If the Agency deems a foreign national candidate not eligible for the position, employers will be notified more quickly – granting them greater lead time to address such contingencies.

Longer validity for ‘Job Search/Business Creation’ residence permit. The validity period for the Residence Permit for Job Search or Business Creation is now 12 months (up from nine months).

This permit applies to researchers who have completed their research activities in Luxembourg and who seek to remain in the country to find work or start a business.

Researchers can now remain in Luxembourg longer to find work or start a business. This is likely to ensure greater retention of talent in Luxembourg.

Relaxed labor market testing rules for international protection applicants

International protection applicants will no longer be subject to labor market testing if they have been searching for work in Luxembourg for six months.

This change will likely increase labor market participation by international protection applicants.