It's a well-known fact that the Luxembourg labour market is currently suffering from a severe labour shortage. Industries related to the financial sector are particularly hard hit by this crisis. A recent report by the ADEM, drawing up a list of professions "in short supply", mentions professions as varied as accountant, manager, lawyer, IT developer or banking risk analyst.
To tackle this major problem, Luxembourg has recently reshaped its immigration law. The aim of the Law of 7 August 2023, amending the amended Law of 29 August 2008 on the free movement of persons and immigration, coming into force on 01 September, is to remedy labour shortages and support employers in their search for skilled workers. It includes major changes designed to simplify the hiring of third-country nationals.
This legislation has two major objectives:
Issuing work permits on the basis of family reunification
Family members of third-country nationals holding a Luxembourg residence permit on the basis of family reunification will therefore have free access to the Luxembourg labour market and will no longer need to apply for a work permit or a self-employment authorisation.
Simplification of procedures for hiring third-country nationals
Third-country nationals who are not yet present on the Luxembourg territory have easier access to the Luxembourg labour market if their occupation is listed as a "shortage profession".
In this respect, a distinction is made between two situations:
- Occupations which are listed as "shortage professions"
On a yearly basis, the ADEM publishes a list of occupations facing "significant shortages of skilled workers". For occupations on this list, the ADEM is exempt from its obligation to carry out a job market test and check whether jobseekers corresponding to the profile sought by the employer are available. In such cases, the certificate will be issued within five working days. (See article L. 622-4 of the Luxembourg Labour Code as amended by article 16 of the Law of 7 August 2023).
- Occupations which are not listed as "shortage professions"
For positions which are not mentioned on the list of "professions experiencing a severe shortage", the job market test will continue to be carried out, but with shorter time frames. The ADEM will have seven working days to check whether jobseekers meeting the profile required for the declared position are available. If no candidates can be found, the certificate will be issued once this period has elapsed.
However, if during this period, the ADEM does identify a candidate corresponding to the profile sought by the job offer, it will have a further period of fifteen working days to propose the candidate to the employer. If the candidate is rejected, the employer must provide the ADEM with the reasons for the rejection within one month. If, at the end of this new period, the ADEM is unable to find another candidate matching the required profile, the certificate will be issued within ten working days.
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