Luxembourg laws govern the world of work in the Grand Duchy of Luxembourg. Whether you're a resident or a frontier worker, whether you're seconded or hired locally, anyone working in Luxembourg is subject to the current labor code.
Here you'll find information on the different types of employment contract available in Luxembourg. We also look atteleworking, 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, regardless of their status as residents or cross-border commuters, and of 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.
Employees must comply with the provisions laid down by the legal framework, particularly in the event of sick leave. In this area, frontier workers are subject to different provisions for sick leave.
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.
Looking for an independent trade union in Luxembourg? Find out more at ALEBA.
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 the employer and the employee. The CDI 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 period. A fixed-term contract meets the company's needs for a specific, non-permanent 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,
- Work-study contracts, offered in particular at the Unicareers job fair,
- Professionalization internships are designed to reintegrate vulnerable workers into the job market.
- Student contracts.
Would you like to find out more about employment contracts in Luxembourg? Click here to find out more.
Teleworking in Luxembourg
Integrating teleworking into the organization of Luxembourg companies
The Covid-19 crisis has turned the Luxembourg labor market upside down. This made it possible to relax the number of teleworking days, so that employees and companies were not penalized.
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.
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
According to figures from the Chambre des Salariés, teleworking was practiced by 21% of residents in 2019. In the midst of the 2020 crisis, and in order to limit the spread of the epidemic, the Luxembourg government has made teleworking compulsory, except in special cases where it is impossible due to the nature of the job. By 2021, 40% of employees were working remotely.
Fully integrated into the organization of work within companies, telecommuting is managed differently from one company to another in Luxembourg. In 2023, almost 30% of employees were still working remotely.
Today, more and more employers are calling their employees back to the company premises, including Amazon, one of the country's largest employers , which asks all its employees to return to the office.
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. Teleworking 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 directly impacts the taxes of non-residents who wish to benefit from tax optimization. Learn 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 .
Looking for a job in Luxembourg? Don't neglect the summer period.
The importance of networking in professional exchanges
Luxembourg is a small country, often likened to a large village given the number of inhabitants. A personal network is also very important when it comes to business relations. 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.
Work and driver's license
If you need to travel for work, find out about the formalities to be carried out concerning your driving license. If you need to convert your foreign driver's license to be valid in Luxembourg, you'll find essential information on the steps to follow in our comprehensive guide on our Luxembourg Driver's License details page.
As part of your professional integration in Luxembourg, it's essential to obtain recognition of your professional qualifications to boost your application and remuneration. For more information on this subject, see our page onDiploma recognition and professional experience in Luxembourg.
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 law, including legislation on sick leave, and on all aspects of social security 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.
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