Cross border remote work: An employers’ guide to the new regulations in Luxembourg

From 1 July 2023, employers in Luxembourg have faced crucial regulatory changes following the adoption of the multilateral framework agreement on cross border remote work. ECOVIS IFG Audit S.A. in Luxembourg has prepared the following guide to the key points of the new law.

1. Adoption and scope: The framework agreement, adopted on 1 July 2023, involves Luxembourg and its neighbouring countries (Belgium, France, Germany), along with 15 other EU Member States and Switzerland. Notably, the United Kingdom has opted not to sign the agreement.

2. Applicability and eligibility: The agreement applies to telework accounting for between 25% and 50% of total working time. Eligible employees must meet specific conditions, including signatory status of both the employer’s and employee’s country of residence.

3. Declaration procedures: Employers must declare cross border remote work activities to the Joint Social Security Center (Centre Commun de la Sécurité Sociale (CCSS)). Declarations can be submitted online at www.teletravail.ccss.lu using a provisional form. A token, sent via post, is required for online submissions.

4. Transitional period: The framework allows for a transitional period until 30 June 2024, during which regular telework activities from 1 July 2023 can be declared retroactively.

5. European regulations: Telework linked to activities in two or more Member States is subject to European regulations (nos. 883/2004 and 987/2009). Further details on procedures are available at www.teletravail.ccss.lu/information-en.

6. Importance of compliance: Employers are urged to declare cross border remote work promptly to avoid potential sanctions and fines. Non-compliance may result in retroactive disaffiliation from Luxembourg’s social security system, necessitating the repayment of benefits. The penalties for fraudulent activities include fines and imprisonment.

TDo you have questions about the new rules for cross border remote work? We can advise you on the correct implementation.

Arnaud Yamalian, Réviseur d’entreprises agréé, Managing partner, ECOVIS IFG Audit S.A., Luxembourg, Luxembourg

Companies should note the following

The adoption of the framework agreement marks a significant shift in cross-border remote work regulations. It is important to proactively assess telework practices and ensure compliance with the new regulations. These activities should be declared promptly using the system provided by CCSS to mitigate risks and also maintain a transparent relationship with employees.

For further information please contact:

Arnaud Yamalian, Réviseur d’entreprises agréé, Managing partner, ECOVIS IFG Audit S.A., Luxembourg, Luxembourg
Email: arnaud.yamalian@ecovis-audit.lu