Factsheet for measure
LU-2020-43/1387
–
Updated
– measures in Luxembourg
Agreement on a teleworking regime
Convention du 20 octobre 2020 relative au régime juridique du télétravail
Background information
During the COVID-19 crisis, teleworking was identified as essential for keeping companies in business and preventing social difficulties. Discussions between the two representative social partners, OGBL and LCGB, the employers' association UEL, and the Ministry of Labour and Employment led to a joint evaluation of telework at the level of the Economic and Social Council CES. From there, discussions continued between the social partners. An inter professional agreement was signed between the social partners in October 2020.
Content of measure
The agreement is applicable for three years and will cover all sectors of the Luxembourg economy, excluding transportation. The agreement mandates that teleworking must be:
-
a form of organisational work, conducted by digital means and usually done at the company, but that is transferred to the location where the employee lives.
-
applied to occasional and exceptional circumstances, remaining below the 10% threshold of the annual working time.
-
based on a written agreement between the employer and the employee, containing several compulsory elements, such as the location of teleworking and the number of hours of work conducted virtually. An employee can't be dismissed if he/she does not accept a teleworking scheme and an employer can't be made accountable if the employer refuses a teleworking scheme.
-
supported by the employer by providing the necessary technical equipment to efficiently work under a teleworking scheme.
-
regularly reported to the company staff delegation.
Updates
The following updates to this measure have been made after it came into effect.
|
01 July 2023
|
Luxembourg has signed a bilateral framework agreements with France, Belgium and Germany respectively, relaxing the rules on teleworking following the entry into force of the European framework agreement. From 1 July 2023, people working in the country where their employer is based will be able to spend up to 49.9% of their working time in their country of residence. Employers must request an A1 certificate valid for a maximum of 3 years from the social security fund. For employers who do not make the request, the previous rules apply (https://guichet.public.lu/fr/actualites/2023/juin/08-teletravail-accord-cadre-securite-sociale.htmlnt).
In the case of telework in a country that has not signed the bilateral exception agreement, or for an employer based in a country that has not signed the agreement, the traditional rules and procedures applied before the pandemic will apply to telework from 1 July 2023. For cross-border, teleworking has no impact on their social security, family allowances or social benefits, as long as the working time in their country of residence remains below the 25% threshold (https://paperjam.lu/article/teletravail-accord-a-49-securi).
In terms of taxation, the tax treaty between France and Luxembourg applies. As a result, the activity carried out in the country of residence is taxed in that country, while the activity carried out on the employer's premises is taxed in Luxembourg. However, French cross-border commuters may work in France and continue to pay all their tax in Luxembourg up to a limit of 34 days per year. If this threshold is exceeded, all the days worked in France will be taxed in France.
A similar tax agreement was signed with Belgium on 19 December 2022, allowing cross-border commuters living in Belgium to telework for 34 days without having to declare them to the Belgian tax authorities.
A similar tax agreement has also been signed with Germany, allowing cross-border workers living in Germany to also benefit from 34 days of teleworking per calendar year. This agreement will come into force in 2024.
In all cases, training, business trips and occasional secondments are included in the teleworking days. The only difference is that on-call time is also counted as a teleworking day in Belgium.
|
|
03 May 2023
|
On 3 May 2023, the Chamber of Deputies approved of the amendment that increased the number of days allowed for teleworking and business travel for French cross-border workers. The threshold was also raised from 24 to 34 days for Belgian cross-border commuters on 1 January 2022. There were no changes for German workers, which remained at 19 days.
|
|
15 February 2021
|
The Chamber of Employees believes that the shifting of costs (computer, electricity, etc.) to teleworking employees should be compensated by the companies. The cost is estimated at €174/month.
|
Use of measure
All employees in the private sector (with the exception of transport sector) and covered by the Code of Work are concerned.
Contents
-
Basic working time
-
Health and safety
-
Income protection
-
Other topics
-
Working time flexibility
Target groups
|
Workers
|
Businesses
|
Citizens
|
|
Applies to all workers
|
Applies to all businesses
|
Does not apply to citizens
|
Actors and funding
|
Actors
|
Funding
|
National government
Trade unions
Employers' organisations
Company / Companies
|
Companies
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Agreed (outcome) incl. social partner initiative
|
Agreed (outcome) incl. social partner initiative
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Social partners jointly
-
Main level of involvement: Peak or cross-sectoral level
Involvement
The agreement is a social partner initiative within the Economic and Social Committee. The two representative trade unions, OGBL and LCGB, and the employer association, UEL, signed the agreement.
Views and reactions
The agreement is based on a social partner initiative and they were highly supportive of a joint agreement.
Sources
