According to the Association in Support of Immigrant Workers (ASTI) and Passerell, many immigrants making significant efforts to integrate and work legally in Luxembourg are nonetheless denied residence permits.

According to Sérgio Ferreira, political spokesperson for ASTI, the asylum system is often exploited by people who have no right to asylum but are seeking legal pathways into Europe. This, he adds, is because there are no other real legal ways to enter Europe. However, this system is hard to justify in a country that faces demographic challenges and labour shortages, even for unskilled work in sectors like construction.

The legal pathway requires that a third-country national have both a permanent employment contract (CDI) and a housing contract in Luxembourg before applying for a residence permit. You cannot live across the border, an almost insurmountable requirement for most. "The application must actually be made before entering Luxembourg," explains Clara Bertrand, a lawyer with Passerell. While it was previously possible to submit applications from within the country, such requests are now often rejected, even if the person already has a work contract.

Ultimately, whether a residence permit is granted depends on the Ministry's discretion and is evaluated on a case-by-case basis. Applicants must have housing and sufficient resources. For some nationals, such as those from Iraq, this creates a legal limbo: they cannot be deported, yet their asylum requests are rejected, leaving them without legal status.

"They are allowed to regularise, but the law is applied strictly without consideration for the realities people face in the country," Bertrand explains further shedding light on how the housing crisis is an additional barrier. Many applicants lose access to their accommodation while waiting for a response, which can force families to leave before even becoming homeless. Losing their work permit along with their job further eliminates any chance of regularising their status. "It's a vicious cycle emanating from the system itself," Ferreira concludes.

Asylum process often the only route to work

For many people, particularly in unskilled professions, the asylum procedure is often the only realistic pathway to enter Europe, says Sérgio Ferreira. However, the system is not designed to allow newcomers to access the labour market quickly. One key issue is that applicants for international protection (DPI) can only begin working after six months, and even then, the process is administratively complex. Employers must submit applications to both the Immigration Directorate and ADEM, making applicants extremely dependent on their first employer. "If there is a dismissal or conflict with the employer, the person loses everything," Ferreira warns. Without a job, a person may also lose their residence permit, and without a residence permit, there is no address or work, creating a vicious cycle.

Ferreira argues that every refugee should be granted the right to work from the outset, provided they speak one of the official national languages. This would allow them to proactively integrate. He adds that it is entirely unrealistic to expect people in the refugee system to become fully autonomous immediately. This is one reason why around 40 percent of places in refugee structures are occupied by people who already have a residence permit.

Clara Bertrand from Passerell campaigns for helping refugees secure housing rather than leaving them at risk of becoming homeless. On concerns that procedures take too long, potentially leading to deportations of long-integrated individuals, she notes: "Technically, the process should never take that long. The delay is mostly due to the high number of asylum requests and the time courts take for many cases. On the other hand, the system gives people the opportunity to find work, integrate, and learn the language," which increases their chances of regularisation.

'Kafkaesque' scenarios

More often than not, ASTI encounters people who have made every effort to integrate and were still kicked down. "I fear we're sending people the wrong signal," Ferreira states. Often these denials are given to working people, who have housing. However, they might have taken some time off due to illness or their child's illness and as a consequence lose their residence permit.
 
Regarding the possibility of regularising families or individuals through the NGO forum, Sérgio Ferreira says this has been possible under very strict conditions since 2013. However, only around 600 people have been regularised through this channel since then.