Hiring in Luxembourg with an Employer of Record (EOR)

Looking to hire employees in Luxembourg? An EOR can assist.

Luxembourg, a small but prosperous European country, offers a stable political and economic environment, making it an attractive destination for international businesses. With its strategic location, highly skilled workforce, and favorable tax structure, Luxembourg is a popular choice for companies looking to expand their operations within the European Union.

If you’re looking to expand your business’s presence in Luxembourg, an Employer of Record (EOR) can help you navigate the complex regulatory landscape and streamline your hiring process. By partnering with an EOR, you can quickly and efficiently hire talent in Luxembourg without the need to establish a legal entity.

An EOR acts as the legal employer for your Luxembourg workforce, handling all HR and compliance responsibilities, while you maintain control over day-to-day operations and strategic decision-making.

Why choose an EOR for hiring in Luxembourg?

Expanding into Luxembourg can be complex for businesses of all sizes, especially when navigating its unique regulatory landscape. Partnering with an EOR for your global expansion can streamline HR operations and allow businesses to focus on their core business. By partnering with an EOR to make new hires in Luxembourg, you can:

• Swiftly onboard new hires in Luxembourg without the need to set up a local entity yourself.
• Manage HR operations in a streamlined, efficient way by outsourcing payroll, benefits, and compliance tasks.
• Mitigate legal risks by leaving it to the EOR to ensure full compliance with Luxembourgian labor laws and tax regulations.
• Turn your attention to strategic business planning by delegating HR and compliance responsibilities to the EOR.

Acting as the legal employer for your Luxembourg workforce, an EOR assumes responsibilities for HR and compliance so you don’t have to. This frees you to concentrate on your core business free from the worry of maintaining regulatory compliance.

Choosing between an EOR and PEO in Luxembourg

As a globally growing organization, you have two main choices for swift expansion into Luxembourg: an EOR or PEO.

To figure out which way to go, it’s important to be well-versed in primary differences between an EOR and PEO.

The choice that makes the most sense for any employer that wants to minimize the most risk associated with compliance related to employment law in Luxembourg is an EOR.

How to select the right EOR provider in Luxembourg

When selecting which EOR is best for your expansion into Luxembourg, several key factors should be considered. An EOR poorly matched to your needs can result in challenges with compliance, unnecessarily increasing costs, and a detrimental effect on on your Luxembourg workforce’s satisfaction with their employment.

It’s crucial to assess the EOR’s understanding of Luxembourgian labor laws, regulations, and workplace culture. Additionally, the EOR’s ability to provide reliable customer support and dedicated account management will prove to be indispensable. Transparent pricing and a clear understanding of the total cost of ownership are also essential factors to evaluate. Here’s what to look for:

• Legal Compliance: The EOR must have a comprehensive understanding of Luxembourgian labor laws, regulations, and cultural landscape. Seek a provider with a proven track record of handling complex compliance matters specific to your industry.
• Customer Service: A reliable EOR should offer exceptional 24-7 support and dedicated account managers. At Multiplier, actual humans, not bots, are there to help seven days per week at all hours of the day. Plus, a Multiplier-assigned manager is dedicated to your account.
• Pricing and Transparency: Hidden fees and unexpected costs can accumulate quickly with some EORs. Choose one with easy-to-understand upfront pricing and transparent billing practices. It’s crucial to understand what the actual cost is to initiate work with the EOR.
• Total Cost of Ownership: In addition to all-important initial costs, the long-term value and potential hidden costs down the line are necessary considerations, too. Going with what might seem a like a bargain EOR may cause an expense later eclipsing those up-front savings due to compromises on quality of service or compliance. Invest in a reliable EOR that delivers exceptional value, minimizes your risk exposure, and ensures a positive employee experience.

How EOR services work in Luxembourg

Step 1: Send that contract over

Streamline your onboarding process with Multiplier. Once you’ve found the right candidate and the perfect EOR, Multiplier’s automated HR functions can produce an employment contract compliant with Luxembourgian labor law in less than five minutes. You can then tailor job responsibilities, working hours, remuneration, termination conditions and other terms. Once everything is ready, Multiplier will send the contract securely and get it signed.

Step 2: Enhance compensation with competitive benefits

Want to include a competitive benefits package? You probably should if you want to attract and retain top talent. Fortunately, Multiplier will sift through long list of local vendors and their offerings aligning with local regulations and employee preferences. You will then have input on selecting the options you want.

Step 3: Get all your documentation in order

Now is the time to streamline your onboarding process with the help of your EOR. To set up payroll, Multiplier will collect necessary documentation, including tax and banking information for seamless start for your new hires. Navigating Luxembourg’s onboarding employees can be complex, but an EOR simplifies the process.

Step 4: Run payroll for employees based in Luxembourg

Making sense of Luxembourg’s complex payroll landscape can be daunting. Partnering with an EOR ensures accurate and timely salary payments because Multiplier handles all local payroll and tax obligations. With your EOR’s global payroll solution, you can manage payroll for your entire workforce across the globe from a single place.

Step 5: Manage your employees and leave HR compliance to the EOR

Now comes the post-hire phase. Multiplier streamlines post-hire processes to ensure that your employees in Luxembourg receive timely and accurate payments from the first paycheck to the last. Multiplier will also handle compliance when you terminate an employee and navigate local regulations for you when someone leaves voluntarily.

Moving forward with Multiplier EOR in Luxembourg

If you need to expand quickly into Luxembourg, going with an EOR is a really good move. By outsourcing HR and compliance functions to Multiplier, you streamline operations and mitigate risks so you can turn your focus to core business activities.

With Multiplier’s Employer of Record (EOR) services, you have an end-to-end solution to expand your workforce into Luxembourg quickly — hiring top talent without having to establish a local legal entity by yourself.

Multiplier facilitates smooth hiring, onboarding, employee management processes, and managed payroll. Locally compliant contracts are produced efficiently and quickly, and, with Multiplier’s help, you have the ability to offer a range of highly competitive customizable benefits tailored to Luxembourgian standards.

Book a demo today to learn how Multiplier can help you achieve your global expansion goals in Luxembourg.