Home News Newsflash 2017 Newsflash 31.05.2017

Newsflash 31.05.2017

Attention: open in a new window. PrintPrint

 Law of 14 March 2017 concerning the posting of employees


CASTEGNARO expresses its solidarity with the families of the London attack victims.

The law of 14 March 2017 1) amending the Labour Code; 2) amending Article 3 of the Law of 17 June 1994 laying down measures to safeguard employment, price stability and business competitiveness (hereinafter “the Law”) entered into force on 24 March 2017.

The Law transposes into national law Directive 2014/67/EU of 15 May 2014 on the implementation of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

The Law inserts the following main key changes into the Labour Code:

-     Company responsibility in subcontracting chains, through the setting up a mechanism for the joint and several liability of all companies involved; 

-     The introduction of an electronic platform for posting arrangements, following administrative practices already in place; 

-     New documents to be produced by the posting company, for effective control ensuring posted employees actually receive payment of wages due in relation to hours actually worked; 

-     Strengthening of administrative collaboration at the national level, associating the Directorate of Immigration, the Department of Public Works, the Public Roads Administration and the Administration of Public Buildings with the supervisory roles falling within the competence of the Labour and Mines Inspectorate; 

-     The introduction of effective redress mechanisms enabling posted employees to lodge complaints or initiate legal proceedings before the Luxembourg courts, directly or with their agreement, through trade unions, even if the employee has left Luxembourg territory in the meantime;

-     The introduction of administrative penalties for infringements of the provisions on the posting of employees, where offenses are punishable by an administrative fine of between EUR 1,000 and EUR 5,000 per seconded employee, but the total amount of the fine cannot exceed EUR 50,000; 

-     The introduction of rules governing the cross-border enforcement of administrative penalties and fines between the Grand Duchy of Luxembourg and another Member State; 

-     The introduction of the possibility for the ITM to close a site for serious breaches of labour law.