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How to hire an employee in Luxembourg

This guide explores how to properly publish a vacancy, select a candidate for the position, and avoid violating

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Finding and hiring employees is an important stage in the development of any business and a complex process that requires complete immersion. It is important to know which specialists are needed at the moment, which ways to use, how to hire employees outside the EU and many other nuances.

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I plan to hire an employee:
🇪🇺 in the EU, EEA, Switzerland
🌎 Worldwide, including "third countries
Step-by-step process
Decide to open a vacancy
2-3 months
Perform new employee orientation
Decide to open a vacancy
Post a job announcement
Advertise job openings to the public
Choose a candidate
Sign an employment contract
Submit a declaration to CCSS about hiring a new employee
Perform new employee orientation

A number of factors, both internal and external, can cause the need to hire a new employee.

Internal factors that motivate you to initiate a search for a new employee:
Maternity Leave
Study Leave
External factors that motivate you to initiate a search for a new employee:
New laws and regulations
Technological advances
Economic changes
Changes in foreign policy

What to consider when a vacancy occurs

  • The employer must first consider and recruit its former employees when a new vacancy arises in their field.
  • The employer must first notify the ADEM and then its temporary employees of the vacancy (if the vacancy is for a permanent position).

Once the budget, the required profile and the urgency of the selection have been determined, the employer must submit a declaration of vacancy to the ADEM (National Employment Agency in Luxembourg).

How to submit a vacancy in ADEM

  1. Fill out the form on and send it to ADEM at least 3 days before the public announcement of the search (in the media, on specialized portals).

    You can submit a notice under the "Declaration of a vacant position" section using the online submission form.

  2. Wait for a reply from the ADEM upon receiving the declaration of vacancy.

    The National Employment Agency sends an e-mail confirmation to the employer with the name of the consultant responsible for all recruitment matters.

  3. Find an employee within 2 months

    The vacancy is valid for 2 months, after which it will be automatically closed. If you have not found the right candidate during this period, you should contact the ADEM support service and request an extension by e-mail at or by phone at +352 247-88000.

  4. Post the vacancy on EURES, the European Job Mobility Portal

    After notifying the ADEM, employers who want to extend their search on the European market can use EURES.

What is priority employment
What steps must be completed in the online form when filing a declaration

Once ADEM has been notified, you can post the position to all available sources that may be helpful in finding a professional.

Specialized portals

You can advertise for employees using online job boards. For example, you can use and to post jobs and communicate with potential candidates.

Career fairs

These events are held on a regular basis and companies can take advantage of these events to find talented young professionals and present their open positions to the Luxembourg labor market.

Recruitment agency

It is also possible to use a specialized recruitment agency, but it must be made clear that it operates in accordance with Luxembourg law.

Social media and company website

If the employer's website has a careers section, it is worth posting a vacancy there. You can also use social media such as LinkedIn.

Mass media

Any media that publishes a selection of job openings can be helpful when you need to publicize your search for an employee.

Search through referral links

Current employees can recommend a job opening to their contacts if they meet the requirements. This search is triggered by referrals that internal employees share with potential candidates. If the referral is successful and the candidate is hired, the incumbent is paid.

When an employer starts to search for a candidate for a vacant position, there is a specific goal in mind — the selection of a person from a variety of applicants who will best meet the requirements of the vacant position. This usually involves assessing the knowledge, skills, abilities, and psychological profile of potential candidates. Employers usually perform this task in-house or hire recruitment agencies.

When searching for the right candidate, employers need to have an up-to-date hiring strategy that may include:

Offer or commitment
Learn more about how companies conduct inteviews in Luxembourg
an iOS developer with 7 years of experience

Any employer who intends to hire an employee will sign an employment contract with the employee before the employee starts work or on the first day of work.

An employment contract is an agreement between the parties whereby one person agrees to work for and perform the duties of another person in exchange for compensation.

It is recommended to conclude the employment contract in writing in 2 copies (for the employee and for the employer), although the legislation recognizes the oral form.

There are two main types of contract in Luxembourg: the CDI, or permanent contract, and the CDD, or fixed-term contract. A CDI is usually issued for permanent employment in the country.

CDI or permanent employment contract

A permanent contract has no specific end date and provides job security for the employee. A Contrat à Durée Indéterminée, or CDI in Luxembourg, is a written agreement between the employer and the employee. It sets out the terms and conditions of employment, including duties, salary, working hours, notice periods and other relevant details. The terms and length of the probationary period, during which either party may terminate the contract with a shorter notice period, are specified separately.

CDD or temporary employment contract

A fixed-term contract is for a fixed period of time and automatically ends when the agreed end date is reached. This contract is used when a company needs to temporarily replace an employee or cover a specific project or workload. A probationary period cannot be imposed under a fixed-term contract.

Collective agreements

In some industries in Luxembourg, there are collective agreements between employers' associations and trade unions. These agreements set out additional terms and conditions of employment to be observed by employers in the sector concerned. An important feature of these agreements is that they precisely supplement the provisions of the Labor Code in accordance with the needs and specificities of a particular sector of activity.
Labor law in Luxembourg
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Employers must file a declaration of employment (déclaration d'embauche) with the Centre commun de la sécurité sociale (CCSS) within 8 days of hiring an employee.

How to submit a declaration to CCSS

  1. Submit an electronic entry declaration via SECUline 

    The "DECAFF" file must be completed as soon as the employment contract is signed and the employee's valid social security number is registered. If the number is not available, it must first be obtained using the "DEMMAT" file.

  2. Wait for a response from CCSS via mail

    Confirmation is automatically sent to the employee and employer after registration. If an error is made in completing a file, it is rejected and returned to the company with the reason for rejection.

Once prospective employees agree to the terms of their contract and sign it, the employer can begin onboarding them.

The customization process may include
Obtaining an Employee Tax Card
Getting to know the team, projects/processes
Training and mentoring

There is no standard adjustment process in Luxembourg, as each employer organizes the process based on its corporate values.

However, without adaptation, the employee is much slower to engage in the work process, so this stage is considered mandatory for successful employment. To this end, some companies organize virtual days for a gentler immersion in the process.

A couple of weeks later I received a response that the employer was happy with my code. Then, they looked at the work of other candidates and selected several people for a virtual session. That's a kind of full-time workday with complete immersion in work and real tasks, except it's done remotely. It's quite an interesting experience.

In the process of adjustment it is important to explain all organizational aspects to the employee well: to conduct a full briefing on what and how to register, when the salary will be paid, how to plan and apply for leave and other similar issues.

Luxembourg tax cards
Read article

Frequently Asked Questions (FAQ)

How to publish a vacancy in Luxembourg

How to hire a foreign employee in Luxembourg

How to obtain a certificate from ADEM for a "third country" employee

We took photos from these sources: Annie Spratt, Unsplash

Authors: Maria, Kadriia
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