Labor laws and working conditions

Luxembourg laws govern the world of work in the Grand Duchy of Luxembourg. Regardless of their status, whether resident or cross-border worker, posted worker or locally hired, all persons working in Luxembourg are subject to the labor code in force.

Here you will find the different types of employment contracts that exist in Luxembourg. We also discuss teleworking, specifically for cross-border workers. You will also find information here about the representative bodies in Luxembourg in the world of work.

Labor law in Luxembourg

Luxembourg labor law is designed to protect the rights of workers, regardless of their status as residents or cross-border workers, and of companies.

Labor law rules are established by politicians, in consultation with workers' and employers' representatives. The rights and obligations of each party are clearly defined in order to protect the interests of all parties.

Employees must comply with the provisions established by the legal framework, particularly in the event of sick leave. In this area, cross-border workers are subject to other provisions for their sick leave.

Work-life balance for employees

The Labor Code ensures that employees are not overworked. Thanks to vacation time and working time regulations, they have enough free time to spend with their families and pursue their interests. However, they must comply with company laws, or they risk dismissal.

Legal framework conducive to business development

Employers also benefit from a framework conducive to the development of their businesses, while having to comply with the rules or face fines and legal proceedings. Employees who believe their rights have been violated can file a complaint with the Ministry of Labor, Employment, and the Social and Solidarity Economy.

Overall, Luxembourg is a great place to work and live. Employment laws are robust and aim to maintain a balance in employer-employee relations.

Are you looking for an independent trade union in Luxembourg? Find out more from ALEBA.

Types of employment contracts in Luxembourg

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

The permanent contract in Luxembourg

A permanent contract, or CDI, is a contract signed between the employer and the employee. A permanent contract has no expiry date. It therefore meets a long-term need of the company. The employee works for the company in return for a salary.

The CDI can be terminated by either party, the employer or the employee. The minimum notice period is established in advance in the contract. An employer who terminates an employee's employment contract must justify their decision. If they fail to do so, the dismissed employee has the right to request the reason for their dismissal. The employer must then justify the validity of their decision. Employees, on the other hand, may resign without justification.

Fixed-term contracts in Luxembourg

A fixed-term contract is an employment contract signed between the employer and the employee for a specific period. Fixed-term contracts meet the company's need for a specific, non-permanent task.

The maximum duration of a fixed-term contract is two years. It can be renewed twice. Fixed-term contracts meet an extraordinary need of the company. If the need persists, the company must then sign a permanent contract with its employee.

Other Luxembourg employment contracts

Other types of employment contracts may be signed between the employer and the employee. These correspond to specific cases and specific needs.

• Temporary work meets a specific, non-permanent need of a company. It is the subject of a tripartite relationship:
  • between the employer and a temporary employment agency through a temporary employment contract,
  • between the temporary employment agency and the person in charge of the assignment through an assignment contract,
• A seasonal contract is a permanent contract that meets a permanent need of the company, but is linked to a seasonal activity, such as the grape harvest.
• Work-study contracts, offered in particular at the Unicareers Job Fair,
• Professional training internships meet the professional reintegration needs of vulnerable workers.
• Student contracts.

Would you like more information about the types of employment contracts in Luxembourg? Click here.

Teleworking in Luxembourg

Integration of teleworking into the organization of Luxembourg companies

The Luxembourg labor market has been disrupted by the Covid-19 crisis. This has led to a relaxation of the number of days that can be worked remotely, so that employees and companies are not penalized.

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

To date, teleworking is left to the discretion of employers. When looking for a job, candidates can discuss this point with their future employer at the appropriate time.

History of remote working in Luxembourg

According to figures from the Chamber of Employees, teleworking was practiced by 21% of residents in 2019. In the midst of the crisis in 2020, and in order to limit the spread of the epidemic, teleworking was made mandatory by the Luxembourg government, except in special cases and where it was impossible due to the nature of the job. In 2021, 40% of employees were working remotely.

Fully integrated into the organization of work within companies, teleworking is managed differently depending on the Luxembourg company. In 2023, nearly 30% of employees were still working remotely.

Today, more and more employers are calling their employees back to the company's premises, notably Amazon, one of the country's largest employers, which is asking all its employees to return to the office.

Teleworking and cross-border workers in Luxembourg

Teleworking rules for cross-border workers

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

• French cross-border workers are entitled to 34 days of teleworking per year.
• Belgian cross-border workers are also entitled to 34 days of teleworking.
• German cross-border workers are entitled to only 19 days. This number will also increase to 34 as of January 1, 2024.

The impact of teleworking on cross-border workers

Exceeding the number of teleworking days allowed by the cross-border worker can have a significant impact on them. Teleworking improves the quality of life of cross-border workers by reducing their commuting time.

However, remote working can be disadvantageous from a financial point of view. If the negotiated number of teleworking days is exceeded, the cross-border worker is liable for tax on their earned income in their country of residence and no longer in Luxembourg.

In addition, if they work more than 25% of their working time in their country of residence, employees must register with the local social security authorities. This means that their retirement pension is no longer paid in Luxembourg. Furthermore, the Grand Duchy will no longer pay family allowances.

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

Employee compensation

The employer and employee are free to decide on the employee's remuneration. This is calculated based on the assignment or position, the employee's qualifications, and their skills. However, a minimum social wage must be respected.

Benefits in kind may supplement the monthly salary paid to the employee. These are freely negotiated between the employee and their employer. Companies often offer benefits in kind related to their business.

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

Other useful information about 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 due to the international context. Certain profiles are of interest to Luxembourg companies, particularly given the labor shortage 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 language or another is preferred in exchanges between colleagues or business partners.

In certain professions, such as personal care and nursing, knowledge of Luxembourgish is essential. Speaking Luxembourgish is highly appreciated by the native population, particularly in shops and services.

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

Are you looking for a job in Luxembourg? Don't overlook the summer period.

The importance of networking in professional exchanges

Luxembourg is a small country, often likened to a large village given its population. Personal networks are also very important in professional relationships. Don't hesitate to join one of the many associations and participate in events that promote networking! This can be particularly useful when looking for a job.

Work and driver's licenses

If you need to travel for work, find out about the formalities you need to complete regarding your driver's license. If you need to convert your foreign driver's license to make it valid in Luxembourg, you will find essential information on the steps to follow in our comprehensive guide on our page detailing driver's licenses in Luxembourg, which specifies the steps to follow.

When integrating into the Luxembourg job market, it is essential to have your professional qualifications recognized in order to boost your application and your salary. For more information on this subject, see our page on the Recognition of qualifications and professional experience in Luxembourg.

Where can you find information about your work?

Chamber of Employees in Luxembourg (CSL)

The Chamber of Employees (CSL) is under the supervision of the Ministry of Labor and Employment. It brings together all employees (white-collar and blue-collar workers), apprentices, and retirees who work or have worked in Luxembourg.

In addition to its advisory role on all draft laws and Grand Ducal regulations, the Chamber of Employees provides information on labor law, including legislation on sick leave, and everything related to social security in Luxembourg. It also provides information on health and well-being at work.

One of the CSL's main tasks is also to train future employees and ensure the continuing education of employees.

Through the Luxembourg Lifelong Learning Center, the Chamber of Employees offers a wide range of training courses (law, marketing, humanities, finance, office automation, and IT, etc.) in French, English, or German.
Courses take various forms: seminars, evening classes (224 modules) and daytime classes, always organized by module.

Luxembourg Chamber of Skilled Trades and Crafts

The Luxembourg Chamber of Trades and Crafts is the professional organization responsible for crafts. It brings together all craft businesses in Luxembourg, representing more than 120 local trades and occupations. The Chamber of Trades and Crafts thus represents more than 7,000 businesses, or 22% of all businesses in Luxembourg.

The Luxembourg Chamber of Trades and Crafts works to preserve and develop craftsmanship in Luxembourg. It is responsible for:

• vocational training in craft trades in order to preserve and develop the know-how of craftsmen
• establishing the legislative framework and defining regulations for craft trades in order to preserve their expertise while also promoting innovation
• providing advice and information, etc.

The Chamber of Skilled Trades and Crafts provides all the information you need on starting a business. In particular, it organizes seminars for entrepreneurs and other self-employed workers on topics such as business management, languages, technology, etc., as well as apprenticeships and continuing education related to skilled trades and crafts professions.

Luxembourg Chamber of Commerce

The Luxembourg Chamber of Commerce is a public institution that supports and assists all Luxembourg companies in their development at national, European, and international level. 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 Luxembourg's GDP. It is the most important professional chamber in the country.

The Luxembourg Chamber of Commerce provides economic analyses and services to its more than 90,000 affiliated companies and to anyone interested in engaging in commercial activity.

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

The Chamber of Commerce's Merkur magazine is an information magazine sent out every two months, with a circulation of over 35,000 copies. You can request a copy online on the Chamber of Commerce website.

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

Find all our information on employment in Luxembourg here.