Laws and working conditions

Luxembourg administrative procedures

Luxembourg laws govern the world of work in the Grand Duchy of Luxembourg. Regardless of their status - resident or cross-border worker, seconded worker or local employee - everyone working in Luxembourg is subject to the applicable labor code. 

Here you'll find information on the different types of employment contract available in Luxembourg. We also look at teleworking, specifically for cross-border workers. You can also find out more about Luxembourg's labor representative bodies here. 

Employment law in Luxembourg

Luxembourg labor law is designed to protect the rights of workers and companies. 

The rules of labor law are drawn up by those involved in political life, in consultation with representatives of workers and employers. In this way, the rights and duties of each party are clearly defined, to safeguard the interests of both.

Work-life balance for employees

The labor code ensures that employees are not overworked. Thanks to vacations and regulated working hours, they have enough free time to spend with their families and pursue their own interests. They must, however, comply with the laws governing the business world, on pain of dismissal.

Legal framework conducive to business development

Employers also benefit from a framework conducive to the development of their business, while having to comply with the rules on pain of fines and prosecution. Employees who feel their rights have been violated can lodge a complaint with the Ministry of Labour, Employment and the Social Solidarity Economy.

Overall, Luxembourg is a great place to work and live. Employment laws are solid. They aim to preserve a balance in relations between employers and employees.

Types of employment contracts in Luxembourg

There are several types of employment contract in Luxembourg. The most common are open-ended and fixed-term contracts. Employment contracts are concluded at the latest when the employee joins the company.

Open-ended contracts in Luxembourg

The CDI or Contrat à Durée Indéterminée is a contract signed between employer and employee. It has no expiry date. It meets a company's long-term needs. The employee works for the company in return for a salary.

A permanent employment contract may be terminated by either party, employer or employee. The minimum notice period is set out in the contract. Employers who terminate an employee's employment contract must justify their decision. If he fails to do so, the dismissed employee can ask for the reason for his dismissal. The employer must then justify his decision. On the other hand, the employee may resign without justification.

Open-ended contracts in Luxembourg

A fixed-term contract (CDD) is an employment contract signed between employer and employee for a specific duration. It meets the company's needs for a specific, short-term task.

The maximum duration of a fixed-term contract is 2 years. It may be renewed 2 times. The fixed-term contract meets an extraordinary need of the company. If the need persists, the company must sign a permanent contract with the employee.

Other Luxembourg employment contracts

Other types of employment contract can be signed between employer and employee. They correspond to precise cases and specific needs.

  • Visit temporary work corresponds to a company's specific, non-permanent needs. It is the subject of a tripartite relationship:
    • between the employer and a temporary employment agency under a temporary employment contract,
    • between the temporary employment agency and the person in charge of the assignment, by means of an assignment contract.
  • A seasonal contract is an open-ended contract that meets a company's permanent needs, but is linked to a seasonal event such as the grape harvest.
  • Professionalization internships are designed to help vulnerable workers reintegrate into the workforce.

More information on employment contracts in Luxembourg

Teleworking in Luxembourg

Integrating teleworking into the organization of Luxembourg companies

Since the Covid crisis, workers have been legally entitled to teleworking days. During these days, they are authorized, in full agreement with their employer, to work from home.

The Covid-19 crisis has turned theLuxembourg labor market upside down. This made it possible to relax the number of teleworking days, so that employees and companies were not penalized.

At present, telecommuting is left to the discretion of employers. As part of a job search, candidates can discuss this point with their future employer at the appropriate time.

History of teleworking in Luxembourg

Used by just 20% of residents in 2019, telecommuting is now fully integrated into corporate work organization. Organizations are adapting to a hybrid mode of working. This is managed differently in different Luxembourg companies.

In order to limit the spread of the epidemic, the Luxembourg government has made teleworking compulsory in 2020, except in special cases where it is impossible due to the nature of the job.

Since then, the use of telecommuting has increased more than 3-fold, particularly in public administration (x3.7) and among skilled staff in large companies (x3.2). At the height of the crisis, more than half the workforce, and indeed all staff in financial institutions and the information and communications sectors, worked remotely (Source STATEC).

Teleworking and cross-border commuters in Luxembourg

Teleworking rules for cross-border workers

For cross-border workers (around half the workforce), teleworking days are negotiated under bilateral agreements between the Luxembourg government and the countries concerned.

  • French cross-border workers benefit from 34 days' teleworking per year.
  • Belgian cross-border commuters are also entitled to 34 days' teleworking.
  • German cross-border commuters benefit from just 19 days. This number will also rise to 34 from January 1, 2024.

The impact of teleworking on cross-border commuters

Exceeding the number of teleworking days authorized by the frontier worker can have a major impact on the latter. In fact, telecommuting improves the quality of life of frontier workers by reducing their commuting time.

However, telecommuting can be financially disadvantageous. If a cross-border commuter exceeds the number of negotiated teleworking days, he or she is liable to paytax on salaried income in his or her country of residence, rather than in Luxembourg.

In addition, employees working more than 25% of their time in their country of residence must register with local social security organizations. This means that their retirement pension is no longer paid in Luxembourg. Family allowances are no longer paid by the Grand Duchy.

Teleworking time has a direct impact on the taxation of non-residents who wish to benefit from tax optimization. Find out more here.

Employee remuneration

The employer and employee are free to decide how much the employee will be paid. This is calculated on the basis of the assignment or position, the employee's qualifications and skills. However, a minimum social wage must be respected.

Benefits in kind may be added to the employee's monthly salary. These are freely negotiated between the employee and his employer. Companies often offer benefits in kind related to their activity.

Are you applying for a job and want to know what salary ranges you can expect? Check out the latest salary trends here.

Other useful information in the world of work

Identical status for refugees and Luxembourg residents

The number of people benefiting from international protection, also known as "refugees", is increasing in Luxembourg given the international context. Certain profiles are of interest to Luxembourg companies, particularly in view of the shortage of manpower in certain sectors.

Luxembourg law gives refugees the same right to work as Luxembourg residents: they do not need a work permit.

Languages spoken at work

Luxembourgish, French and German are the three official languages in Luxembourg. Depending on the sector, one or the other language is preferred for business or professional exchanges.

In certain professions, such as personal assistance and care, knowing Lëtzebuergesch is a must. Knowing how to speak Lëtzebuergësch is highly appreciated by the Luxembourgish population, especially in stores and services.

However, given the high proportion of foreigners in certain companies, English is widely used in many sectors of professional life .

The importance of networking in professional exchanges

Luxembourg is a small country, often likened to a large village given the number of inhabitants. Personal networks are also very important for business relationships. Don't hesitate to get in touch with the many associations and take part in networking events! This can be particularly useful when looking for a job.

Where can you get information about your work?

Chambre des salariés au Luxembourg CSL

The Chambre des Salariés or CSL is under the supervision of the Ministry of Labor and Employment. It brings together all salaried employees (blue-collar and white-collar), apprentices and pensioners who work or have worked in Luxembourg.

In addition to its advisory role on draft legislation and Grand-Ducal regulations, the Chambre des salariés provides information on labor and social security law in Luxembourg. It also provides information on health and well-being in the workplace.

One of the CSL's main missions is also to train future employees and ensure that employees receive ongoing training.

The Chambre des Salariés, through the Luxembourg Lifelong Learning Center, offers a wide range of training courses (law, marketing, human sciences, finance, office automation and IT, etc.), in French, English or German.
Courses are offered in a variety of formats: seminars, evening classes - 224 modules - and daytime courses, always by module.

Luxembourg Chamber of Trades and Crafts

The Chambre des Métiers de Luxembourg is the professional organization responsible for crafts. It brings together all craft businesses in Luxembourg, representing over 120 trades and local jobs. The Chambre des Métiers represents more than 7,000 businesses, or 22% of all businesses in Luxembourg.

The Chambre des Métiers de Luxembourg is responsible for preserving and developing the craft industry in Luxembourg. It is responsible for :

  • vocational training in the craft trades to preserve and develop craftsmen's know-how
  • draw up the legislative framework and define the regulations governing craft trades, in order to preserve know-how while at the same time innovating
  • advise, inform,...

At the Chambre des Métiers, you'll find all the information you need to set up your own business. In particular, it runs seminars for business start-ups and other self-employed people: business management, languages, technology, etc., as well as apprenticeships and continuing training related to the crafts and skilled trades.

Luxembourg Chamber of Commerce

The Luxembourg Chamber of Commerce is a public institution that supports and assists all Luxembourg companies in their national, European and international development. The Chamber of Commerce does not intervene in the fields of crafts and agriculture. It represents 75% of all salaried employment in Luxembourg, and accounts for 80% of the country's GDP. It is the country's largest professional chamber.

The Luxembourg Chamber of Commerce provides economic analyses and services to its more than 90,000 member companies and to anyone interested in doing business.

The Chamber of Commerce can intervene in the country's legislation by issuing opinions. It promotes entrepreneurship and the creation and development of local businesses. It also supports economic and trade relations with foreign countries.

The Chamber of Commerce's Merkur magazine is the news magazine sent out every 2 months with a circulation of over 35,000. You can request it online from the Chamber of Commerce website.

The Chamber of Commerce brings together its continuing education activities in the Luxembourg School for Commerce.

Find all our information on employment in Luxembourg here.

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