Whatever is their status of residence (resident or inhabitant of the border zone), every employee working in Luxembourg is subjected to the current labor code in Luxembourg. The Luxembourg laws are ruling the professional world for every one, national from an European country or not, detached or cross-border employee.
Types of employment contracts
There are several types of employment contracts, of which the most important are the permanent contract and the fixed-term contract.
The permanent contract
The permanent contract (CDI in French) is an undated employment contract which can be broken by the 2 parties with a minimum period of notice. The employer who breaks the contract has to justify his decision while the employee can resign without any justification.
The fixed-term contract
The fixed-term contract (CDD in French) is an employment contract signed between the parties for a precise duration and for a precise, transient task. The maximal duration of a fixed-term contract is of 2 years and can be renewed twice.
Workers can legally benefit from teleworking days. During these days, they are allowed, in full agreement with their employer, to work from home by remote working. In 2019, only 20% of residents were teleworking. It was made compulsory by the government during the Covid19 crisis in order to limit the spread of the epidemic and manage the crisis.
As far as cross-border workers are concerned, these Teleworking Days are negotiated in bilateral agreements with the countries concerned. Since July 2019, French cross-border workers benefit from 29 teleworking days per year, Belgian workers from 24 teleworking days and German cross-border workers from 19 days only.
The coronavirus crisis has made it possible to make this number of days more flexible so that teleworkers are not penalised. Indeed, if this number of teleworking days is exceeded, employees are liable for tax in their country of residence and no longer in Luxembourg. Moreover, if they work more than 25% of the working time in their country of residence, workers have to register with the local social security bodies. Their retirement pension is therefore no longer contributed to in Luxembourg and family allowances are no further paid by the Grand Duchy. This can have a strong impact for the employee and therefore be disadvantageous from a financial point of view, beyond the improvement of the quality of life thanks to the reduction of travel time.
The remuneration of the salaried employee
The employer and his employee can decide freely on the salary to which the employee will be paid. This one is calculated according to the mission or to the post, the qualifications of the employee and to his skills.
Legal duration of work
Legal working hours
The legal duration of work is of 8 hours per day and 40 hours per week. The law allows overtime for up to 2 hours a day and up to 8 hours a week.
The maximal working duration cannot exceed 10 hours a day, neither 48 hours a week.
Every employee is legally entitled to an annual paid time off of 26 working days, to which are added legal holidays: the New Year, Easter Monday, the 1st and 9th of May, the Ascension Day, Whit Mondays, the National Day (on the 23rd of June), the Assumption, All Saints’ Day (the 1st of November), Christmas and the day after (on the 25th and 26th of December).
Each year, collective agreements in the building and civil engineering sectors require collective holidays for its employees. These leaves last 15 working days in the summer period and 10 working days in the winter period. This measure concerns approximately 18,000 people working in the building sector.
Concretely, August looks like a “Summerlach” or summer hole with all construction sites stopped, either public or private, except derogations granted by the Inspectorate of Work and Minies in cases of work in schools, or in factories during production shutdowns or on demand if the ITM considers the work as urgent.
Each employee is entitled to a number of special leaves for family events.
Other useful information about work
Identical status for the refugees and the Luxembourg residents
The question of the hiring of the refugees was studied by Adem on May 11th, 2017 on the occasion of the Diversity Day. The people benefitting from the international protection, and also called “refugees” are more and more numerous on the Luxembourg territory. Certain profiles interest the Luxembourg companies, in particular in case of lack of workforce in certain domains.
The Luxembourg law gives the refugees the same employment law as for the Luxembourg residents: they do not need a working authorisation.
Spoken languages within the framework of work
Luxembourgish, French and German are the three official languages in Luxembourg. However, considering the strong proportion of foreigners and foreign companies, English is very much spoken in numerous sectors of the professional life.
In some jobs, such as personal cares or nursing auxiliaries among others, mastering Luxembourgish will turn out inescapable. Speaking Luxembourgish is very appreciated by the population of Luxembourg origin, among others in stores and the services field.
Importance of networking
Luxembourg is a small country, often likened to a big village considering its number of inhabitants. Personal network is very important within the framework of professional relations. Do not hesitate to turn to the numerous associations favouring networking!
Tip to find a job
To find a job in Luxembourg, recognition of your foreign diplomas and/or validation of your professional experiences can be useful.
Did you know that Summertime is an excellent moment to apply for a job?
Where to get information?
Chamber of Employees Luxembourg CSL
The Chamber of Employees or CSL is under the supervision of the Ministry of Labour and Employment. It includes all employees (employees or workers), apprentices and retired people working or having worked in Luxembourg.
In addition to its consultative missions for any law and grand-ducal regulation, the Chamber of Employees informs you of labour law in Luxembourg, the rights of the employee and delivers all information on health and well-being at work. It also appoints representatives to social security organisations.
One of the main missions of the CSL is also to train future employees and ensure current employees’s lifelong learning. The Chamber of Employees, through the Luxembourg Lifelong Learning Center, offers a wide range of trainings (law, marketing, human sciences, finance, office automation and IT, etc.), in French, English or German, all leading to a certification approved by international universities.
Courses take place in different forms: seminars, evening classes – 224 modules and day classes, always by module.
Chamber of Skilled Trades and Crafts
The Chamber of Skilled Trades and Crafts of Luxembourg is the crafts competent professional organisation. It brings together all craft companies in Luxembourg, that is to say more than 120 local jobs and trades, listed in professional fields as diversified as food, communication, multimedia and entertainment, fashion, health and hygiene, mechanics and construction and various craft activities.
The Chamber of Skilled Trades and Crafts represents more than 7,000 companies, or 22% of companies in Luxembourg.
The Chamber of Skilled Trades and Crafts of Luxembourg deals with preserving and developing the craft industry in Luxembourg. It is in charge of:
- Vocational training in craft jobs to preserve and develop craftsmanship
- Laying down the legal framework and defining craft regulations in order to preserve its know-how but in parallel to innovate
- advising, informing, ..
You will find in the Chamber of Skilled Trades and Crafts all information on business creation, and seminars for entrepreneurs: business management, languages, technology, etc., apprenticeship and lifelong learning related to crafts jobs and craftmen.
Chamber of Commerce
The Chamber of Commerce of Luxembourg is a public institution that supports and guides all Luxembourgish companies except those related to crafts and agriculture, in their development at national, European and international level. The Chamber of Commerce represents 75% of all paid employment in Luxembourg and 80% of Luxembourg’s GDP.
It provides business analysis and services to its more than 90,000 affiliated 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. It aims at promoting entrepreneurship, the creation and development of companies in the country as well as supporting business and trade relations with foreign countries.
The magazine of the Chamber of Commerce is Merkur, sent every 2 months, published in more than 35,000 copies. Read Merkur on the website of the Chamber of Commerce.
The Chamber of Commerce brings together its training activities within the Luxembourg School for Commerce.
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16 June 2020
27 May 2020