Labor law in Luxembourg

Labor laws are the door to fair employment with main focus the workers’ rights and benefits. Of course, there are also unions to deal with any misconduct, but usually labor laws, in several European countries, as in general quite clear, ensuring employee happiness and a functioning working environment.

This article looks into all the angles of labor law in Luxembourg including contract types, minimum wage, leaves, terminations and more. It is an employee guide to navigate as great as possible within the Luxembourgish work life.

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Main types of employment contracts in Luxembourg

The main types of contracts in Luxembourg include two types: CDI or , and CDD or .

CDI

An open-ended contract has no specific end date and provides job security for the employee.

An indefinite-term contract (Contrat à Durée Indéterminée or CDI) in Luxembourg is a written agreement between an employer and an employee. It outlines the terms and conditions of employment, including job duties, salary, working hours, notice periods, and other relevant details.

A CDI provides job security for the employee, as there is no fixed end date for the contract. The employment relationship continues until either party decides to terminate it, following the legal requirements for dismissal or resignation.

The CDI is the most common and sought-after type of employment contract in Luxembourg. It offers stability and long-term prospects for the employee, allowing them to build a career with the company. Employers often prefer CDIs for core roles within their organization, as it provides continuity and fosters a strong commitment from the workforce.

CDD

A fixed-term contract is made for a specified period, and it automatically ends upon reaching the agreed end date.

This contract is used when a company needs a temporary replacement for an employee or to cover a specific project or workload.

Minimum wage and working hours in Luxembourg

As of February 1, 2023, the minimum wage in Luxembourg is 2,447 euros for unskilled workers and 2,936.48 euros for skilled workers. We have previously covered the salaries in Luxembourg in our dedicated article.

Absences in the employment system: sick leave, annual vacation

To get legal sick leave, an employee in Luxembourg needs to follow these few steps:

Inform their employer as soon as possible about the illness and inability to work.

Provide a medical certificate from a doctor to justify the sick leave.

Follow the employer's internal procedures for sick leave notification and documentation.

In Luxembourg, "annual leave" and "vacation" often refer to the same thing — time off from work. Employees are typically entitled to paid vacation days, which are also considered annual leave.

Statutory leave in Luxembourg is 26 days per year plus public holidays such as Christmas, and New Year.

The duration of leave varies based on different use throughout the year, but generally, it can be taken all in one go or during different parts of the year. Depending on the agreement, there might be some additional holidays to consider.

Termination of employment in Luxembourg

The procedures and regulations related to dismissal in Luxembourg may include:

providing a valid reason for termination, which can be either personal or economic in nature,

complying with notice periods, which vary based on the length of service and contract type,

offering the possibility of appealing the dismissal decision.

Both the resignation letter and termination letter are crucial documents that formalize the end of an employment relationship. Let's look at how they work.

Resignation Letter

When an employee decides to leave their job voluntarily, they must submit a resignation letter to their employer. The resignation letter should be in writing and include the employee's intention to resign, the last working day (), and a professional tone.

The notice period is the period of time an employee needs to continue working after submitting the resignation letter, allowing the employer to find a replacement if necessary. The notice period varies depending on the length of service and other factors specified in the employment contract or collective agreement.

Termination Letter

If the employer decides to terminate an employee's contract, they must provide a termination letter in writing.

The termination letter should clearly state the reason for termination, adhering to the legal grounds allowed for dismissal in Luxembourg (e.g., economic reasons, disciplinary issues, etc.). The employer must comply with the notice period specified in the employment contract, collective agreement, or applicable labor laws when terminating an employee. If no specific notice period is outlined, legal minimums apply.

It's essential for both parties (the employer and the employee) to adhere to the legal requirements and any contractual obligations when handling resignation or termination matters.

Failure to do so may lead to legal consequences or potential disputes. Additionally, consulting with legal experts or relevant labor authorities can provide guidance on proper procedures and ensure compliance with the labor laws in Luxembourg.

Workers’ fundamental rights in Luxembourg

In Luxembourg, workers enjoy various fundamental rights and protections that are designed to ensure fair treatment and a safe working environment.

The main fundamental workers’ rights are:

Right to a safe and healthy working environment. Employers are obligated to provide a safe workplace, including measures to prevent accidents, ensure occupational health, and adhere to safety regulations.

Protection against discrimination. Workers are protected from discrimination based on various grounds, such as gender, age, race, religion, disability, sexual orientation, or nationality.

Right to paid annual leave. Workers are entitled to a certain number of paid vacation days each year, depending on their years of service and the provisions of the collective agreement or labor laws.

Right to paid sick leave. Employees have the right to take paid sick leave when they are medically unfit to work, provided they follow the proper procedures and provide a medical certificate.

Protection for pregnant women and mothers. Pregnant employees and new mothers are entitled to maternity leave and other protections to ensure their well-being during pregnancy and after childbirth.

Parental leave. Workers have the right to take parental leave to care for their children, allowing them to balance work and family responsibilities.

Right to union membership. Workers have the right to join labor unions and engage in collective bargaining to protect their interests and negotiate better working conditions.

Protection against unfair dismissal. Employees are protected against arbitrary or unjustified dismissal. Employers must provide valid reasons and adhere to the proper procedures when terminating an employee's contract.

This Labor Inspection authority is responsible for enforcing labor laws, investigating complaints, and ensuring employers comply with workers' rights. Mistreated workers can report their grievances, which will conduct an investigation and take appropriate actions to address any violations found.

If a worker believes their rights have been violated, they should:

Document the incident or violation with as much detail as possible.

Raise the issue with their employer and try to resolve it internally.

If the issue remains unresolved, contact the ITM to file a complaint and seek assistance in resolving the matter.

The labor laws in Luxembourg are designed to protect workers' rights and ensure fair treatment. Additionally, collective agreements between employers' organizations and labor unions often provide additional protections and benefits for workers in specific industries or sectors, so it is definitely a good idea to be a member of a union.

These actions combined can create a fair and supportive working environment for employees in the country.