The laws of Luxembourg govern the world of work in the Grand Duchy of Luxembourg. Regardless of their status, whether they are a resident or a frontier worker, a posted worker or a local employee, all persons working in Luxembourg are subject to the applicable labor code.
Here you can find the different types of employment contracts. We also discuss the subject of teleworking, specifically for cross-border workers. You will also know where to turn if you need to.
Labour law in Luxembourg
Luxembourg labor law is designed to protect the rights of workers. It also allows for a good work-life balance.
The rules regarding working hours and vacations are established by the actors of political life. This is done in consultation with employee and employer representatives. The rights and duties of each party are thus clearly defined, in order to preserve the interests of each party.
The labor code ensures that employees are not overworked. This allows them to have enough free time to spend with their families and pursue their interests. They must, however, respect the laws of the business world, or risk being fired.
Employers also benefit from a framework conducive to the development of their business, while having to comply with the rules under penalty of fines and legal proceedings. Employees who feel that their rights are being violated can file a complaint with the Ministry of Labour, Employment and Social Economy.
Overall, Luxembourg is a great place to work and live. Employment laws are strong. They aim to preserve a balance in the relationship between employers and employees.
Types of employment contracts in Luxembourg
There are several types of employment contracts. The most important ones are the open-ended contract and the fixed-term contract. Employment contracts are concluded at the latest when the employee joins the company.
The Permanent Contract
The CDI or Contrat à Durée Indéterminée is a contract signed between the employer and the employee. It does not have a deadline to meet a sustainable business need. The employee then works for the company in exchange for a salary.
The CDI can be broken by both parties, employer and employee. The minimum notice period previously established in the contract. The employer who terminates the contract must justify his decision. If he or she does not do so, the dismissed employee has the option of requesting the reason for the dismissal. The employer must then justify its decision. The employee can resign without any justification.
The Fixed Term Contract
A fixed-term contract is an employment contract signed between the employer and the employee for a specific period of time and for a specific, non-durable task.
The maximum duration of a fixed-term contract is 2 years. It can be renewed 2 times. The CDD meets an extraordinary need of the company. If the need persists, the company will have to sign a permanent contract with its employee.
Other employment contracts
Other types of employment contracts can be signed between the employer and the employee. They correspond to specific cases and needs.
- Temporary work corresponds to a specific need of a company, not lasting. It is the subject of a tripartite relationship:
- between the employer and an interim company through a contract of availability,
- between the interim company and the person in charge of the mission by means of a mission contract.
- The seasonal contract is an open-ended contract that meets a permanent need of the company, but is linked to a seasonal nature, such as the grape harvest.
- The professionalization internships correspond to the needs of professional reintegration for vulnerable workers.
Integration of telework in the organization of Luxembourg companies
Employees can legally benefit from telework days. During these days, they are allowed to work from home, in full agreement with their employer.
Used by only 20% of residents in 2019, telecommuting is now fully integrated into the organization of work within companies. Organizations are adapting to a hybrid way of working. This is managed differently in different companies.
The labor market was disrupted with the Covid 19 crisis. This allowed for flexibility in the number of days of remote work, so that employees and companies are not penalized.
In 2020, 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 occupation.
Since then, the use of telework has increased more than threefold, particularly in public administration (x3.7) and among qualified personnel in large companies (x3.2). At the height of the crisis, more than half of the workforce, if not all the staff of financial institutions, information and communication sectors worked remotely (Source STATEC).
To date, telecommuting is left to the discretion of employers. In the context of a job search, the candidate can discuss this point with his future employer at the appropriate time.
Cross-border workers and teleworking
As far as cross-border workers are concerned, teleworking days are negotiated in bilateral agreements between the Luxembourg government and the countries concerned.
- French border workers benefit from 34 days of telework per year.
- Belgian border workers are also entitled to 34 days of telework.
- German border workers benefit from only 19 days. This number will also increase to 34 from 1 January 2024.
It is important to note that exceeding the number of telecommuting days allowed by the frontier worker can have a strong impact on the worker.
In this case, telecommuting can be disadvantageous from a financial point of view, beyond the improvement of the quality of life thanks to the reduction of transportation time.
If the negotiated teleworking days are exceeded, the cross-border commuter is liable to paytax on his salaried income in his country of residence and no longer in Luxembourg.
In addition, beyond 25% of the time worked in their country of residence, employees must register with local social security organizations. This implies that their retirement pension is no longer paid in Luxembourg and family allowances are no longer paid by the Grand Duchy.
The remuneration of the employee
The employer and the employee can freely decide on the salary at which the employee will be paid. Remuneration is calculated according to the mission or position, the employee’s qualifications and skills. However, a minimum social wage must be respected.
You are applying for a job and want to know the salary range you can expect? Check out the latest compensation trends here.
Other useful information in the world of work
Identical status for refugees and Luxembourg residents
The issue of refugee hiring was explored by Adem on May 11, 2017 at Diversity Day. The number of people benefiting from international protection, also known as “refugees”, is increasing in Luxembourg. Certain profiles are of interest to Luxembourg companies, particularly in the event of a lack of manpower in certain fields.
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. However, due to the high proportion of foreigners in some companies, English is very strongly practiced in many areas of professional life .
In some professions, such as personal care, knowing Luxembourgish is essential. Knowing how to speak Luxembourg ish is highly valued by the Luxembourgish population, for example in stores and services.
Importance of networking
Luxembourg is a small country, often assimilated to a big village considering the number of inhabitants. The personal network is very important in the context of professional relationships. Don’t hesitate to turn to the many associations and participate in networking events! This can be particularly useful when looking for a job.
Where to get information for your work?
Chamber of employees CSL
The Chambre des Salariés or CSL is placed under the supervision of the Ministry of Labor and Employment. It includes all employees (white-collar or blue-collar), 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 Chambre des salariés informs you about labor and social security law in Luxembourg, employee rights and provides all information on health and well-being at work. It also appoints representatives to social security organizations.
One of the main missions of the CSL is also to train future employees and ensure the ongoing training of current employees.
The Chamber of Employees, through the Luxembourg Lifelong Learning Centeroffers a wide range of training courses (law, marketing, human sciences, finance, office automation and computer science, etc.), in French, English or German, all leading to a certification validated by international universities.
The courses take place in different forms: seminars, evening courses – 224 modules and day courses, always by module.
Chamber of Trades and Crafts
The Chambre des Métiers de Luxembourg is the competent professional organization in the field of crafts. It brings together all the companies of the craft industry in Luxembourg, that is to say more than 120 local trades and jobs, listed in professional fields as diverse as food, trades related to communication, multimedia and entertainment, in the field of fashion, health and hygiene, mechanics and construction and various craft activities. The Chambre des Métiers represents more than 7,000 companies, i.e. 22% of the companies in Luxembourg.
The Chambre des Métiers de Luxembourg is committed to the preservation and development of the craft industry in Luxembourg. She is in charge of :
- vocational training in the crafts in order to preserve and develop the know-how of the craftsmen
- to draw up the legislative framework and define the regulations around the craft trades in order to preserve its know-how but at the same time to innovate
- to advise, inform,…
At the Chambre des Métiers, you will find all the information you need to set up a business, and seminars for business creators and other self-employed workers: business management, languages, technology, etc., apprenticeship and continuing education related to the craft trades and the craft professions.
Chamber of Commerce
The Luxembourg Chamber of Commerce is a public institution that supports and accompanies all Luxembourg companies, except those related to the craft industry and agriculture, in their development at national, European and international level. It represents 75% of all salaried employment in Luxembourg and constitutes 80% of Luxembourg’s GDP.
It provides economic analyses and services to its more than 90,000 member companies and to anyone interested in doing business. It is the most important professional chamber in the country.
The Chamber of Commerce can intervene in the legislation of the country by issuing opinions. Its objective is to promote entrepreneurship, the creation and development of the country’s businesses and to support economic and commercial relations with foreign countries.
The Merkur magazine of the Chamber of Commerce is the information magazine sent out every two months with a circulation of over 35,000 copies. You can request it online on the Chamber of Commerce website.
The Chamber of Commerce groups its training activities within the “Luxembourg School for Commerce”.
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