- Is there any legislation relating to working from home in your country?
- How can working from home be implemented in a company (e.g. through collective bargaining agreements, a unilateral decision, employment contracts)?
- Can an employer force an employee to work from home?
- Can an employee force an employer to allow them to work remotely?
- Does an employer have to provide the employee with office equipment and supplies for remote work?
- Does a company have to reimburse an employee for expenses incurred while working from home?
- Does an employer have to grant an employee a specific allowance for working from home? If so, under what conditions does an employer not have to pay such an allowance?
- For employees who work remotely, is the employer responsible for ensuring proper working conditions from a health and safety perspective?
- Are there any other specific obligations for the employer?
- Does an employee need to be insured to work from home?
- Is an employee who works from home protected by legislation for work-related accidents and illnesses?
- Is an employer permitted to charge its employees a “reimbursement for working from home” for costs saved? (Saved expenses could include the employee’s reduced costs for transportation, petrol, lunches in restaurants and dry-cleaning charges for office attire).
- Are there any other specific obligations on the employee?
- Have there been any legislative changes, or updates to immigration rules, designed to encourage short-term remote working in your country (compared to the rules normally found in other countries)?
- What is meant by remote work abroad and do national regulations exist in this regard?
- Which labour law provisions are applicable during remote work abroad?
- Do employees remain in the previous social security system during remote work abroad?
- What applies in terms of tax law to short-term remote work abroad, especially after or before a holiday?
- What needs to be considered in terms of residence law?
- Any other comments?
jurisdiction
1. Is there any legislation relating to working from home in your country?
Yes, the Convention of 20 October 2020 on the legal regime of teleworking governs the rules on telework in Luxembourg.
2. How can working from home be implemented in a company (e.g. through collective bargaining agreements, a unilateral decision, employment contracts)?
In case of occasional telework ( i.e. less than 10% of the working time), a simple written confirmation from the employer to the employee is sufficient, for example an email.
In case of regular telework (i.e. more than 10% of the working time), a written and signed agreement between the employee and the employer must define the following aspects :
- the location of the telework;
- the hours and days of the week when the employee must be reachable by the employer;
- the modalities of possible compensation for benefits in kind lost due to telework;
- the monthly flat rate for connection and communication costs;
- the modalities for the transition or return to the traditional work arrangement.
3. Can an employer force an employee to work from home?
No, telework cannot be imposed on the employee. It must be agreed by the employer and the employee. The employee's refusal to telework cannot justify the termination of his/her employment contract for this reason.
4. Can an employee force an employer to allow them to work remotely?
No, it must be agreed by the employer and the employee.
5. Does an employer have to provide the employee with office equipment and supplies for remote work?
Yes, in case of regular telework (i.e. more than 10% of the working time), the employer must provide the necessary equipment for telework (screens, office chair etc).
6. Does a company have to reimburse an employee for expenses incurred while working from home?
Yes, in case of regular telework (i.e. more than 10% of the working time), the employer must cover the costs directly caused by telework (internet, electricity, etc.).
7. Does an employer have to grant an employee a specific allowance for working from home? If so, under what conditions does an employer not have to pay such an allowance?
In case of regular telework (i.e. more than 10% of the working time), a monthly lump sum is to be agreed between the employer and the employee to cover the costs directly caused by telework. The payment of this allowance is mandatory. It is market practice to pay an allowance of e.g., EUR 25.
8. For employees who work remotely, is the employer responsible for ensuring proper working conditions from a health and safety perspective?
The employer must set up and inform teleworking employees of the company's occupational health and safety policy. The employer must ensure optimal working conditions for both teleworkers and employees on the premises.
9. Are there any other specific obligations for the employer?
The employer must ensure that equal treatment of regular employees and employees working from home is respected including conditions of employment, working time, conditions of remuneration, conditions of and access to promotion, access to training, privacy and processing of personal data.
The employer must also comply with the provisions of the GDPR to ensure the protection of teleworkers' data.
10. Does an employee need to be insured to work from home?
No, no additional insurance required.
11. Is an employee who works from home protected by legislation for work-related accidents and illnesses?
Yes.
12. Is an employer permitted to charge its employees a “reimbursement for working from home” for costs saved? (Saved expenses could include the employee’s reduced costs for transportation, petrol, lunches in restaurants and dry-cleaning charges for office attire).
No.
13. Are there any other specific obligations on the employee?
The employee must correctly apply the occupational health and safety policies put in place by the employer.
14. Have there been any legislative changes, or updates to immigration rules, designed to encourage short-term remote working in your country (compared to the rules normally found in other countries)?
No.
15. What is meant by remote work abroad and do national regulations exist in this regard?
There is no legal definition. Remote work abroad typically refers to individuals working for a company based in one country while being physically located in another country.
This notion can cover a few different situations, such as the following:
- teleworking in the case of cross-border workers;
- secondment of an employee;
- where an employee is located in any other place outside of the company location.
In addition, it will also be necessary to define remote work abroad in terms of its duration, whether exceptional, daily, or permanent, since this may have implications for labour law, immigration, tax, and social security matters.
Currently, there is no specific legislation covering remote working abroad in Luxembourg.
Nevertheless, analyses of remote working abroad on a case-by-case basis will make it possible to determine the law and regulations applicable.
16. Which labour law provisions are applicable during remote work abroad?
Labour law provisions applicable to remote work abroad are, in principle, the ones of the country where the employee is normally working.
17. Do employees remain in the previous social security system during remote work abroad?
This must be analysed on a case-by-case basis and the answer will depend on the duration of the period of remote work broad.
18. What applies in terms of tax law to short-term remote work abroad, especially after or before a holiday?
Tax rules regarding short-term remote work abroad are included in double tax treaties concluded by Luxembourg. These rules will vary depending on various factors such as the tax residency status of the worker, where the remote work is performed, or the duration of the days worked abroad. In principle, there are no specific rules on short-term remote work abroad after or before a holiday.
19. What needs to be considered in terms of residence law?
From a Luxembourg tax perspective, an individual is considered a tax resident if the individual’s tax domicile or habitual place of abode is in Luxembourg. An individual's tax domicile is determined by the location where he or she possesses a dwelling and indicates an intent to keep and use it. An individual is considered having a place of abode where his or her presence suggests a non-temporary stay.
20. Any other comments?
Luxembourg has many cross-border workers (i.e. Luxembourg employees living in the border countries of France, Belgium and Germany), and these workers must not exceed tax and social security thresholds.
Regarding social security, a new framework agreement was signed on 1 July 2023 allowing cross-border teleworkers from France, Belgium and Germany to work up to 49% of their total working time from home, subject to acceptance by their employer while remaining affiliated to the Luxembourg social security system.
Regarding tax, cross-border workers must not work in their country of residence for more than 34 days in France, 34 days in Belgium and 34 days in Germany. Otherwise, they will be taxed in Luxembourg and in their country of residence.
