Survey on teleworking in Luxembourg – January 2023


UEL and its members have carried out a survey on the practice of cross-border telework in Luxembourg companies. This survey gave a precise picture of the practice of telework in Luxembourg, and highlighted the advantages, disadvantages and obstacles to this practice according to the type of company and sector of activity.

The UEL survey on cross-border telework was conducted among Luxembourg companies between August and September 2022.
1,073 companies, representing nearly 39% of Luxembourg employees, took part in the survey.

The data collected highlights the need for employers who currently allow teleworking (i.e. more than half of all companies surveyed) to have the possibility of granting more days of teleworking per week, in complete tax and social security neutrality, in order to be able to respond to their employees’ requests in this area. For example, 40% of participating companies that currently allow teleworking said they had already lost a potential candidate because they did not offer enough teleworking.

Thus, it would appear that the participating companies that allow teleworking would like to see the number of weekly teleworking days increased to 2 days (or more), with full tax and social security neutrality. The number of days desired is relatively uniform, regardless of the sector of activity of these companies or their size.

In view of the responses received from companies, UEL considers it important that the Luxembourg government :

  • strengthens its proactive approaches, firstly to Germany, Belgium and France (and then at European or international level)
  • in order to obtain the implementation of a “safe-harbour” allowing cross-border employees to telework two days a week, in complete tax and social security neutrality (both for the employees and for their company, and therefore including in terms of permanent establishment). This adaptation of the cross-border telework framework is necessary to enable employers who wish to do so (and who have the material possibility to do so) to respond positively to their employees’ requests in this area.

Independently of the implementation of such a safe harbour, UEL also considers it important for the Luxembourg government to take proactive steps now with Germany, Belgium and France to clarify the rules applicable to the recognition of a permanent establishment in the case of cross-border teleworking. In addition, the absence of recognition of a permanent establishment when cross-border teleworking remains below the current tolerance thresholds should also be discussed.

Such an approach is part of a desire to enable employers to attract talent to the region and to continue to develop economic activity there for all businesses.