Security and law

Labor law in Luxembourg

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.

Table of content

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.

The labor in Luxembourg is controlled by the Ministry of Labour, Employment and the Social and Solidarity Economy.

Sora Shimazaki for Pexels

Main types of employment contracts in Luxembourg

The main types of contracts in Luxembourg include two types: CDI or contrat de travail à durée indéterminée, and CDD or contrat à durée déterminée.

CDI

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.

Form of the employment contract

The employment contract must be drawn up in 2 copies (for the employee and the employer) and no later than the date of employment. It should also contain the following key points:

the identity of the parties concluding the contract (names, addresses).
the effective date of entry into service of the employee. As regards the employment of non-EU nationals, the date of entry into service may be stated on a conditional basis. For exmaple, "the employee will enter into the employer's service on the date of receipt of his work permit".
the place of work.
the registered office of the business or, where applicable, the employer's place of residence.
the nature of the job carried out, and, where applicable, a description of the role and tasks assigned to the employee at the time of his employment.
the duration of the employee's usual daily or weekly work.
the usual working schedule.
the basic salary and the index in force on signing the contract, as well as any additional financial benefits.
the duration of paid annual leave, or if it is not possible to state this when concluding the contract, the means used to determine and allocate the amount of leave must be stated.
the notice period that the employer and employee must give if the contract is terminated.
the duration of the trial period, where applicable.
where applicable, a reference to the collective agreements governing the working conditions of the employee.
where applicable, the existence and description of a supplementary pension scheme, the optional or compulsory nature of that scheme, the rights to related benefits and any personal contributions to be made.
where applicable, any additional or derogation clause which may override the law.

Trial period

Trial period is quite common in most of the companies. It gives the employee a chance to see if they can handle the job, and it lets the employer know if the potential employee is up to the task.

Duration of the trial period

3 months maximum if the employee does not have a vocational skills certificate (CATP) / vocational diploma (DAP) or equivalent.
6 months maximum if the employee has a vocational skills certificate (CATP) / vocational diploma (DAP) or equivalent, or a higher level of training.
12 months maximum if the employee receives a gross monthly salary of EUR 4,938.75 or more.

The probationary period may be terminated earlier on the employer's initiative or extended in case of the employee's illness or absence for other reasons.

CDD

Сollective agreement

Minimum wage and working hours in Luxembourg

As of February 1, 2023, the minimum wage in Luxembourg is 2,570.93 euros for unskilled workers and 3,085.11 euros for skilled workers. We have previously covered the salaries in Luxembourg in our dedicated article.

The standard weekly working hours in Luxembourg are for full-time employees.

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.

The number of vacation days varies depending on the number of years an employee has been working for a company.

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.

More details regarding national holidays in Luxembourg can be found in our article and the new calendar of weekends and official days off.

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

Termination Letter

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.

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.

In case of mistreatment or violations of their rights, workers in Luxembourg can seek help from the Inspection du Travail et des Mines.

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.