Agefi Luxembourg - janvier 2025

Janvier 2025 31 AGEFI Luxembourg Droit / Emploi ByXavierMARTINEZ and Sacha THILL, Partners Tax, GlobalMobility Services, KPMGLuxembourg B efore we delve into the details of our article, it is worth recapping what a PostedWorker is. Accor- ding to the European Commission, “A ‘postedworker’ is an employee who is sent by his employer to carry out a ser- vice in another EUMember State on a temporary basis, in the context of a contract of services, an intra-group posting or a hiring out through a tem- porary agency.” Adapting to a changing SingleMarket The European Commission has re- centlyproposed the creationof aunifieddigital por- tal for the declaration of postedworkers within the European Union (“EU”). As the European Union’s Single Market hosts 5 million posted workers, this initiative aims to simplifyadministrativeprocedures for employerswhile enhancingoversight and trans- parency of the posting of workers. This project is particularly relevant toLuxembourg, where the posting of workers is a critical compo- nent of the local labor market andwhere the Labor and Mines Inspectorate (Inspection du Travail et des Mines, “ITM”) has been intensifying its moni- toring and controlling efforts. This article examines the objectives of this proposal, its advantages for European employers, and its specific implications for Luxembourg. Objectives of the unifieddigital portal: simplification andharmonization The European initiative seeks to replace the frag- mented reporting systems currently in place with a centralizedplatformaccessibletoemployersacrossall EUMemberStates.Atpresent,companiesmustliaise with local authorities ineachhost country tomeet re- portingobligations,whichmeansnavigatingupto27 distinct procedures. This process often incurs signifi- cant costs and delays. The proposed digital portal wouldstandardizeandstreamlinetheseprocessesfor greater efficiency andpredictability. According to theEUCommission, this portalwould: - Enhance transparency regarding the conditions of posting by strengtheningworker protection through thesimplificationofprocesses,whichwillhelpreduce instances of non-compliance with posting rules and increase transparency in the area. - Facilitate access to necessary information for both employers and workers . The new public interface will also be based on technical solutions already im- plemented for the electronic declaration of posted workersintheroadtransportsector,forwhichapub- lic electronic interface, also connected to the Internal MarketInformationSystem( IMI ),hasbeenavailable since 2022. -Reducetheadministrativeburden,particularlyfor smallandmedium-sizedenterprises(SMEs),which constitute a large proportion of employers in Eu- rope .Thetimespentondeclarationsisexpectedtobe reduced by an average of 73%. The unified formwill be available inall official EUlanguages, andwill cen- tralize information for allmember states. Additionally, the initiative includes a reinforced framework for monitoring both declarations and working conditions, and for aligning with the EU commitment to fair competition and worker pro- tection. Luxembourg: a large population of postedworkers The role of Posting inLuxembourg’s economy Asabordercountrywithahighproportionofforeign workers, Luxembourg is significantly impacted by posting-related requirements. In 2023, the ITM pro- cessed 366,607 posting declarations in Luxembourg. Posted workers play a vital role in key sectors of the local economy such as construction, manufacturing, andservices.However,thissituationrequiresheight- enedoversighttoensurecompliancewithpostingreg- ulations, particularly regarding working conditions and social security contributions. Increasedmonitoring by the ITM The ITMhas recently intensified inspections to fight abuses in the posting system. In 2023, the ITM con- ducted 17,328 inspections, identifying an increasing number of irregularities, particularly in the construc- tion sector. These irregularities resulted in 3,268 ad- ministrative fines amounting in total to €14,307,000. Posting-related violations alone accounted for two- thirdsofthefinesissued,withthemaininfractionsin- cluding: - Failure to submit prior-arrival declarations - Non-compliance with remuneration applied and maximumpostingdurations - Incomplete or inaccurate declarations. Giventhesechallenges,theunifieddigitalportalcould become an essential tool for improving compliance and reducingdisputes. Importantly, in addition to posting decla- rationrequirements,Europeanemployers must also adhere to immigration regula- tions when sending third-country na- tionals to Luxembourg as posted workers. These employees must hold the necessary authorizations, such as visas or work permits, in accordance withLuxembourg immigration laws. The ITM collaborates closely with other Luxembourg authorities, such as the MinistryoftheInterior Immigration Direc- torate, to ensure these requirements aremet.Thisaspectis critical,asnon-compli- ancewithimmigration rulescanresultinsevere penalties for both the em- ployer and theworker. Benefits for European employers Administrative simplification The declaration of posted workers currently in- volves complex and diverse procedures across EU States. Despite initial simplifications introduced in 2022, the associated documents and processes re- main quite cumbersome and occasionally unclear for foreign employers. Theunifiedportalwoulden- able employers to: - Submit declarations via a common interface - Track the status of declarations in real time -Accesscentralizedresourcestounderstandtheirlegal obligations and the timeline that needs to bemet. Reduced compliance costs Businessesoftenfacehighadministrativecoststomeet nationalregulations,andthesecanbeaparticularbur- den for SMEs. The digital portal would offer a lower cost alternative by reducing the need to interact with multiple national authorities in the EU.Additionally, discrepanciesinnationalregulationsand/orprocesses can create legal uncertainty for employers. The har- monizationof rules through theportalwouldensure a uniform landscape, mitigating the risk of sanctions andpenalties. A tool for fair competition One of the EUCommission’s primary goals is to en- sure fair competition between local companies and those that are posting workers. The unified portal wouldenablenationalauthoritiestocollaboratemore effectively in detecting fraud in false postings or vio- lations of EUor national social security rules. Implications for employers inLuxembourg An opportunity to improve compliance For companies posting employees to Luxembourg, theunifiedportalwouldsimplifyinteractionswiththe ITMandensurestricteradherencetoregulations.This could also minimize disruptions caused by inspec- tions or disputes. Notably, it should be emphasized that all administrative procedures related to posted workersinLuxembourgmustcurrentlybeconducted exclusivelyinGermanorFrench.AsEnglishisnotone of the legally recognized languages of communica- tion,anydocumentinEnglishmustundergotransla- tion which creates further costs and increases the administrativeworkload. Increased accountability Withacentralizedplatform,employerswouldbeheld more accountable for the accuracyof the information provided. Such a level of transparency is crucial in a country like Luxembourg, where inspections are more andmore frequent and rigorous. For Luxembourg, where posting-related challenges areparticularlypronounced,thistoolcouldserveasa majorassetforboththeauthoritiesandemployers.By combining transparency, simplification, and en- hanced oversight, this initiative addresses the needs of a rapidly evolving labormarket while strengthen- ingworker protections. Conclusion: a long-termproject There is a longway to go before any new system for postedworkersbecomesoperational.Theprojectisin the early stages, with the EUCommission’s proposal currently under review by the European Parliament and the Council. If adopted, EUMember States will needtoadapttheirnationalsystemstointegrateaccess to the unified portal, a process that could take years. Notably, the portal’s usewould remain subject to the discretion of EUMember States, some of whichmay choosetomaintaintheirinternalsystems.Monitoring the adoption of this system by Member States will therefore be essential. For European employers in general, this transition presents a significant opportunity to modernize ad- ministrative practices while enhancing compliance with EU regulations. However, it would also require an initial investment to familiarize themselves with the newtool and adjust internal processes. Luxembourg has not yet issued any official commu- nicationon thematter, although it is reasonable toas- sumethattheGrandDuchyGovernmentwilltakeall necessary measures to curb social dumping and en- hance the protection of workers employed within Luxembourg territory. That said, until any newpro- cedures are established, it remains essential to famil- iarize oneself with the electronic mechanisms currently in place in the GrandDuchy and to ensure possessionofallnecessaryinformationanddocumen- tation to declare secondments with full compliance and confidence. The authors wish to thank Kenza Netef (Senior TaxAdviser, Global Mobility Services) and Frederic Scholtus (Mobility & Immigration Lead-Director, Global Mobility Services) for their valuable contri- bution to this article. Sources: Proposal for a REGULATIONOF THE EUROPEAN PARLIA- MENTANDOFTHECOUNCILonapublicinterfaceconnected to the Internal Market Information System for the declaration of postingofworkersandamendingRegulation(EU)No1024/2012 (3d71a6d4-fde2-48fc-b81c-c4989538baf6_en) Postedworkers-Employment,SocialAffairs&Inclusion-Euro- peanCommission QANDA_24_5785_FR.pdf Chiffresclés2023—Inspectiondutravailetdesmines-Luxem- bourgpublicationle29avril2024) A European initiative with multiple benefits for employers: Aunified portal for PostedWorkers Le Luxembourg face à une forte augmentation des faillites d’entreprises C reditreformLuxem- bourg SAa analysé l’évolutiondes fail- lites d’entreprises auGrand- Duché pour l’année 2024 et l’a comparée à celle de l’an- née précédente. «En 2024, nous observons une hausse significative de 26,38%, avec 1.193 faillites enregistrées au 31 décembre 2024, contre 944 en 2023», souligne Juan San- tiago, Authorized Manager de Creditreform Luxembourg SA. «Cette tendance ne se limite pas au Luxembourg: nos voisins connaissent également une aug- mentation des faillites d’entre- prises. En2024, la France a atteint un record historique de défail- lances d’entreprises. L’Alle- magne et laBelgique enregistrent également des augmentations notables par rapport à l’année précédente» Secteurs les plus touchés Les secteurs de la construction et des services sont particulière- ment affectés, enregistrant des augmentations notables par rap- port à 2023. Parmi les grandes entreprises ayantdéposélebilan,onpeutciter Maconlux Sàrl, CARVALHO Constructions Générales Sàrl et Cenaro.Lesentreprisesayantplus de cinq ans d’existence sont les plus touchées, avec une augmen- tation fulgurante de 52,69%: 852 faillitesen2024contre558en2023. Lesjeunesentreprisesontétérela- tivementépargnées,affichantune baisse de 11,66%des défaillances. Répartition géographique La répartition des faillites par ar- rondissement judiciaire révèle une forte hausse à Luxembourg: 1.105 cas en 2024 contre 848 en 2023, soit une augmentation de 30,31%.Dans l’arrondissement de Diekirch, une baisse de 8,33% est enregistrée, avec 88 faillites contre 96 en 2023. Analyse sectorielle Le secteurde la construction reste aucœurdespréoccupations, avec une augmentationde 27,10%des faillites, atteignant 197 cas en2024 contre 155 en 2023. Cette hausse s’inscrit dans une tendance de crise durable, en 2023 le secteur avait déjà connu une augmenta- tion de 43,52%. «Ces chiffresméritent toutenotre attention», insiste Juan Santiago. Bien que certains signes de re- prise aient été observés au troi- sième trimestre 2024, ils ne suffi- ront pas à surmonter les défis en 2025. Un soutien accru sera né- cessaire pour renforcer cette branche essentielle de notre éco- nomie. Pour stimuler le secteur, il serait certainement utile que le gouvernement accélère leproces- susde réalisationdes grandspro- jets de construction prévus. Le secteur des services, quant à lui, domine les statistiques avec 693 faillites, enregistrant une hausse de 39,44% par rapport à l’année précédente. Le secteur manufacturieraégalementconnu une augmentation, passant de 9 faillites en 2023 à 17 en 2024. Le secteur HORECA affiche une lé- gèrehaussede4,72%,avec111cas en 2024 contre 106 en 2023. Formes juridiques des entreprises en faillite L’analyse par forme juridique montrequelesSàrl(sociétésàres- ponsabilité limitée) enregistrent une hausse de 26,18%, avec 723 casen2024contre573en2023.Les Sàrl-S (sociétés à responsabilité li- mitée simplifiées) affichent égale- ment une augmentation, passant de 129 à 156 faillites. Les SA (sociétés anonymes) en- registrent une progression de 21,46%, atteignant 266 cas contre 219 en 2023. Perspectives pour 2025 Creditreform Luxembourg SA s'attend à ce que le nombre de faillites dans certains secteurs comme la construction et les ser- vices augmente en 2025. Le Luxembourg amaintenant at- teint la moyenne d'avant la crise de 2019 en ce qui concerne le nombretotal,maisl'évolutiondes insolvabilités a évolué différem- mentdanslesprincipauxsecteurs économiques, note JuanSantiago. ©Freepik