Bill No. 8634 Passed: Key Changes To Luxembourg's Pension Regime

In 2023, Looking ahead, we explore the most important trends and developments related to labour and employment law in Luxembourg.

A new law significantly eases the work and residence conditions for highly qualified workers who are third-country nationals.

A reform of the Luxembourg pensions regime came into force on 1 January 2026, introducing a range of measures designed to make the regime sustainable and offer more flexibility to insured individuals.

Directive (EU) 2019/1152 on transparent and predictable working conditions in the European Union (Directive) aims to "improve working conditions by promoting more transparent...

The EU Pay Transparency Directive aims to operationalize equal pay through transparency duties and stronger enforcement mechanisms, with a transposition deadline of 7 June 2026. While most Member States remain in drafting phases and Luxembourg has yet to publish draft legislation, employers should begin preparing now by reviewing compensation structures, establishing objective pay criteria, and ensuring their systems can support future reporting obligations.

Effective July 1, 2024, Luxembourg has introduced more relaxed EU Blue Card rules. Key changes include, among others...

The Directive (EU) 2019/1152 on transparent and predictable working conditions in the European Union was transposed into Luxembourg employment law by a law of 24 July 2024....

Luxembourg's National Institute of Statistics and Economic Studies has confirmed a 2.3% annual inflation rate for May 2026, triggering mandatory wage indexation under the country's Labour Code. This public order provision requires all employers to implement a 2.5% increase across salaries, wages, and pensions starting June 1, 2026, with significant financial penalties for non-compliance.

Due to various factors, the codification of Corporate Social Responsibility (CSR) rules is intensifying in Europe and globally.

bilateral tax treaties signed between the Grand Duchy of Luxembourg and neighboring countries define thresholds for days worked from the countries of residence of non-resident employees.

Japan has enacted sweeping amendments to its Act on the Protection of Personal Information, introducing an administrative surcharge regime with monetary penalties for data protection violations, new protections for children under 16 and biometric data, and expanded exceptions for data utilization in statistical analysis and AI development. The reforms, which take effect in stages through 2028, fundamentally reshape Japan's privacy enforcement landscape by granting the Personal Information Protection Commiss

The European Union's new Regulation on packaging and packaging waste has fundamentally transformed compliance requirements for companies placing packaged goods on the EU market, replacing decades-old directive-based frameworks with directly applicable product-law rules. While promising regulatory harmonization across member states, the reality presents a complex dual-compliance landscape where businesses must navigate both EU-wide packaging standards and diverging national implementation approaches.

The SEC has issued a groundbreaking Innovation Exemption allowing tokenized securities venues to facilitate trading of tokenized NMS stocks using automated market makers and liquidity pools. This temporary five-year exemption from exchange and dealer registration requirements establishes conditions for permissioned blockchain-based trading while granting public companies a 30-day window to object to third-party tokenization of their securities.

A Delaware Court of Chancery decision examines whether an acquiror can terminate a $2.35 billion merger agreement when antitrust approval is delayed beyond the outside date. The case centers on whether the acquiror's abandonment of discussions with a competitor—which triggered an FTC investigation—constitutes "willful conduct" that prevents the buyer from walking away from the deal.

The Hong Kong Securities and Futures Commission (SFC) has issued a circular that sets forth comprehensive guidelines and expectations for licensed corporations (LCs) regarding the responsible use...

The Delaware Court of Chancery imposed significant sanctions in a merger litigation case after finding that the company's controlling stockholder and senior officers recklessly destroyed Signal messages following legal hold notices. The court shifted the burden of proof by presuming certain facts favorable to plaintiffs, requiring defendants to rebut these presumptions with clear and convincing evidence rather than a preponderance standard.

The European Commission's Industrial Accelerator Act proposes to reshape battery supply chains by conditioning access to EU public procurement and support schemes on strict origin requirements. As China controls over 80% of global battery manufacturing capacity, the legislation introduces escalating component-count thresholds that could fundamentally alter market access, financing structures, and supplier eligibility across the battery value chain.

Spain's draft Royal Decree introduces stringent energy sustainability, environmental, resilience and digital sovereignty requirements for data centers, including renewable additionality, hourly correlation, and efficiency standards. The regulation applies to all access and connection permits obtained after entry into force, with specific compliance deadlines for projects in progress and those with granted permits not yet connected to the grid.

HM Treasury has published a consultation proposing a significant overhaul of the UK's payment services and electronic money regulatory framework, aiming to create a more agile regime that accommodates tokenised payments, open banking innovations, and agentic AI while maintaining consumer protections and addressing financial crime risks.

California has enacted a comprehensive package of four bills that fundamentally reshape online safety protections for minors, targeting addictive design features, data privacy practices, age verification systems, and platform liability. These new laws establish strict requirements for social media companies, including mandatory stripped-down interfaces for users under 16, enhanced privacy defaults, and potential damages up to $1 million for negligent harm to children. The legislation represents one of the m