{"id":6373,"date":"2025-07-24T11:57:51","date_gmt":"2025-07-24T09:57:51","guid":{"rendered":"https:\/\/securex.lu\/?p=6373"},"modified":"2025-07-28T17:10:51","modified_gmt":"2025-07-28T15:10:51","slug":"my-hr-update-july-2025","status":"publish","type":"post","link":"https:\/\/securex.lu\/en\/my-hr-update-july-2025\/","title":{"rendered":"My HR Update July 2025"},"content":{"rendered":"\n

Here you will find all the latest news about HR management in Luxembourg!<\/h2>\n\n\n\n

1.Summer will be hot: Beware of extreme heat!<\/a><\/p>\n\n\n\n

2.Communication of employees receiving the profit-sharing bonus to the Luxembourg Inland Revenue :  Changes ahead?<\/a><\/p>\n\n\n\n

3.Apprenticeship contracts: Signing season is open!<\/a><\/p>\n\n\n\n

4.VAT and company cars –  QM ruling:  France takes a stand (at long last)!<\/a><\/p>\n\n\n\n

5.Retroactivity of the DEMDET (Request for a certificate in case of posting abroad) \u2013 proceed with caution!<\/a><\/p>\n\n\n\n

6.Declaration of general obligation of the Collective Agreement for bank employees<\/a><\/p>\n\n\n\n

7.New law\u00a0on strategic workforce and skills planning!<\/a><\/p>\n\n\n\n

<\/p>\n\n\n\n

\n\n\n\n

<\/p>\n\n\n\n

1 – Summer will be hot: Beware of extreme heat!<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

During this heatwave period, the Inspectorate of Labour and Mines recently issued a press release with recommendations and best practices in the event of extreme heat.<\/p>\n\n\n\n

By way of reminder, employers are required to ensure the health and safety of their employees in the workplace.<\/strong> During a heatwave, employers must implement measures for work performed in both outdoor and indoor working environments.<\/p>\n\n\n\n

For outdoor work, employers must set up shaded, well-ventilated areas, provide drinking water to employees at their workstations, reduce physically demanding and prolonged tasks, provide mechanical assistance for strenuous work, etc.<\/p>\n\n\n\n

For indoor workspaces, employers must monitor temperatures and thermally insulate existing buildings and premises, provide equipment to combat heat such as fans or air conditioners, and make sure that sufficient quantities of drinking water are available to all employees of the company.<\/p>\n\n\n\n

<\/p>\n\n\n\n

2 – Communication of employees receiving the profit-sharing bonus to the Luxembourg Inland Revenue: Changes ahead?<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

A bill was tabled 27 May 2025 to revise the procedures for communicating the list of employees who have received a profit-sharing bonus to the Luxembourg Inland Revenue.<\/p>\n\n\n\n

Currently, employers must report each bonus payment throughout the year. To simplify administrative procedures, the proposed legislation would require a single annual communication after the end of the tax year<\/strong>. Accordingly, employers would be required to submit to the Luxembourg Inland Revenue a list with the names of employees who received a profit-sharing bonus between 1 January and 31 December, no later than 1 March of the following year.<\/strong><\/p>\n\n\n\n

As the bill is still under committee review, the current reporting requirements shall remain in effect until any new provisions enter into force.<\/p>\n\n\n\n

<\/p>\n\n\n\n

3 – Apprenticeship contracts: Signing season is open!<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Apprenticeship is a form of vocational training that includes both classroom-based instruction and practical experience in a professional setting.<\/p>\n\n\n\n

It leads to various qualifications and exists in two forms:<\/p>\n\n\n\n

    \n
  • Initial apprenticeship<\/strong>, for minors aged at least 15;<\/li>\n\n\n\n
  • Adult apprenticeship<\/strong>, for individuals over 18 to complete, enhance, or acquire vocational training through an apprenticeship system alternating work and study.<\/li>\n<\/ul>\n\n\n\n

    <\/p>\n\n\n\n

    To hire individuals under this contract form, employers were required to submit apprenticeship position declarations to the vocational guidance service of the ADEM (National Employment Agency) starting in March.<\/p>\n\n\n\n

    Apprenticeship contracts must be signed between 16 July and 1 November!<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    4 – VAT and company cars \u2013 QM ruling:  France takes a stand (at long last)!<\/h2>\n\n\n\n
    \"\"<\/figure>\n\n\n\n

    Following the QM ruling by the Court of Justice of the European Union in January 2021, the provision of a company car by an employer to an employee may, under certain conditions, be considered a “long-term rental of a means of transport”<\/strong> and therefore subject to VAT in the employee\u2019s country of residence.<\/strong><\/p>\n\n\n\n

    Three cumulative conditions<\/strong> must be met to that end:<\/p>\n\n\n\n

      \n
    • The vehicle is made available to the employee for more than 30 consecutive days.<\/strong><\/li>\n<\/ul>\n\n\n\n
        \n
      • The employee must have exclusive and permanent rights<\/strong> to use the vehicle for private purposes.<\/li>\n<\/ul>\n\n\n\n
          \n
        • A counter payment is made.<\/strong> The provision of the vehicle must be “for consideration”<\/strong>,  through:
          • A payment<\/strong> made by the employee to the employer, or<\/li><\/ul>\n
              \n
            • A deduction<\/strong> by the employer from part of the employee\u2019s cash remuneration<\/strong>, or<\/li>\n\n\n\n
            • The employee choosing between various benefits offered by the employer<\/strong>, under an agreement by and between the parties whereby the right to use the company vehicle entails forfeiting other benefits.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

              <\/p>\n\n\n\n

              In a tax ruling published on 30 April 2025, the French tax authorities clarified procedures for the application of the QM ruling and the method for calculating VAT when a  company car is provided. It stated that the taxable base for VAT corresponds either to the rental amount charged or to the portion of remuneration the employee forfeits in exchange for using the vehicle.<\/strong><\/p>\n\n\n\n

              Unlike the Belgian tax authorities, no deduction is allowed for professional use. The French authorities considers that the amount payable by the employee is determined solely based on private use, thereby excluding professional use. As a result, the VAT is calculated on the full amount of the consideration, with no reduction for professional use or duration of use.<\/strong><\/p>\n\n\n\n

              <\/p>\n\n\n\n

              5 – Retroactivity of the DEMDET (Request for a certificate in case of posting abroad) \u2013 proceed with caution!<\/h2>\n\n\n\n
              \"\"<\/figure>\n\n\n\n

              Since 1 July 2023, the framework agreement on teleworking<\/strong> allows, under certain conditions, teleworkers who put in between 25% and less than 50%<\/strong> of their working time in their country of residence to remain subject to the social security system of their country of employment<\/strong>, so they can work more days from home.  A transitional period allowing retroactive declarations over 12 months was introduced but ended on 30 June 2024. As of 1 July 2024<\/strong> , the framework agreement may be applied retroactively for a maximum of 3 months only<\/strong>. This is a strict deadline that must be adhered to carefully. Failure to comply may lead the Joint Centre for Social Security to challenge the affiliation to the Luxembourg system for periods prior to this deadline. <\/p>\n\n\n\n

              As for declarations under the multi-activity regime outside the framework agreement (where conditions are not met or teleworking amounts to less than 25%), such declarations must be made without fail in advance of any travel and\/or planned teleworking.<\/strong><\/p>\n\n\n\n

              <\/p>\n\n\n\n

              6 – Declaration of general obligation of the Collective Agreement for bank employees  <\/h2>\n\n\n\n
              \"\"<\/figure>\n\n\n\n

              A Grand-Ducal regulation has finally  declared the Collective Labour Agreement signed on 1 August 2024 for banking sector employees to be of general obligation.<\/strong> In practice, this means the agreement applies to all banks, not just those that are members of the ABBL [Luxembourg Bankers\u2019 Association].<\/p>\n\n\n\n

              Signed for a term of three years, it has been in effect since 1 January 2024 and will remain so until 31 December 2026.<\/strong><\/p>\n\n\n\n

              <\/p>\n\n\n\n

              7 – New law on strategic workforce and skills planning  <\/h2>\n\n\n\n
              \"\"<\/figure>\n\n\n\n

              The Act\u00a0of 19 June 2025 introduced a new chapter in the Labour Code concerning strategic workforce and skills planning.\u00a0\u00a0 This piece of legislation establishes a co-financing programme for companies and their employees affected by major transformations in the world of work<\/strong>\u2014whether technological, environmental, regulatory, societal, or related to the rise of artificial intelligence.<\/p>\n\n\n\n

              Participation in this new programme is optional<\/strong> for employers. However, companies wishing to benefit from this training scheme must meet three conditions<\/strong>:<\/p>\n\n\n\n

                \n
              • Have their registered office in Luxembourg<\/strong>;<\/li>\n\n\n\n
              • Have carried a genuine business activity in Luxembourg for at least three years;<\/strong><\/li>\n\n\n\n
              • Not be in financial difficulty<\/strong><\/strong><\/li>\n<\/ul>\n\n\n\n

                <\/p>\n\n\n\n

                A specific procedure is outlined in the new legislation to access this scheme, involving the director of ADEM, an approved consultant or advisory firm, and the staff delegation.<\/p>\n\n\n\n

                To support companies implementing this training plan, the Employment Fund will co-finance up to 75% of the costs of preparing the training plan and up to 50% of its implementation, depending on the size of the company.<\/strong><\/p>\n\n\n\n

                So, if your sector is likely to be affected by inevitable changes in employment, don\u2019t hesitate to plan ahead!<\/p>\n\n\n\n

                <\/p>\n","protected":false},"excerpt":{"rendered":"

                My HR Update brings you all the latest news on human resources management in Luxembourg!
                \nIn the July edition, we cover employer obligations during periods of extreme heat, communication with the ACD regarding employees receiving bonuses, apprenticeship contracts, and more.<\/p>\n","protected":false},"author":3,"featured_media":6352,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_tec_slr_enabled":"","_tec_slr_layout":""},"categories":[49,44],"tags":[77],"class_list":["post-6373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-myhrupdate-en","category-news","tag-my-hr-update-en"],"acf":[],"yoast_head":"\nMy HR Update July 2025 - 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