In this article, you will find information on the legal working hours, statutory leave, as well as on remuneration, remote working, and the different possible employment contracts in the Grand Duchy of Luxembourg.
Indeed, the Luxembourg Labor Code applies to all people working in the country, regardless of their status. In the Grand Duchy, Luxembourgish laws govern the world of work!
Working hours
For a full-time employee, the legal working hours are set at 40 hours per week, which represents 8 hours per day. Beyond this duration, it is considered overtime.
Regarding overtime, the law specifies that an employee cannot exceed the maximum working time of 48 hours per week or 10 hours per day.
However, there are exceptional cases. In certain professions or sectors and at certain times of the year, the Minister of Labour may authorize a maximum of 12 hours per day without exceeding the weekly working time of 40 hours.
Similarly, for certain categories of workers, certain business sectors or specific jobs, Sunday work is authorized.
Paid Leave
Every employee is entitled to a minimum of 26 working days of annual recreational leave according to the law. However, a collective agreement, rules of procedure or an employment contract may provide for more than 26 days of legal leave.
The right to paid annual leave applies to all employees regardless of their type of employment contract (fixed-term contract, permanent contract, etc.) or their working hours (full-time or part-time, etc.).
Note that the annual leave of a part-time employee is calculated in proportion to his weekly working hours.
In addition, the employee benefits from 11 public holidays, which have been set by the law of April 25, 2019 and are added to the 26 days of legal leave. In Luxembourg, public holidays that are on a Sunday are recoverable and turn into additional leave days that add up to the 26 days.
Only employees working in the banking sector benefit from 2 additional public holidays: Good Friday and Christmas Eve.
Wages
An employee's salary is an agreement between the employer and the employee. Several criteria are taken into account for calculation of the remuneration, in particular, the qualifications, the skills, the experience, the position, etc. However, the employer must respect the minimum social wage.
In Luxembourg, there are two types of minimum social wages:
- Minimum social wage for an unskilled worker
- Minimum social wage for a skilled worker
An unskilled worker refers to a person whose level of education is below a vocational skills certificate (CATP), a vocational aptitude diploma (DAP), a French Baccalauréat (BAC) or a CEES and a CQA Belgium diplomas.
A skilled worker refers to a person whose level of education is higher or equal to the above mentioned diplomas.
The minimum wage was last increased in September 2023 and now reaches the amount of €2,570.93 gross/month for an unskilled worker and €3,085.11 gross/month for a skilled worker.
Note: Luxembourg is one of only two European countries that index wages to inflation.
Employment contract
The employment contract is generally signed between the parties before the employee starts working in the company.
In Luxembourg, there are several types of employment contracts that we will detail below.
- The permanent employment contract (CDI)
It is concluded between the employer and the employee without an end date in order to meet a long-term need of the company.
The permanent contract can be terminated by either party.
- The fixed-term employment contract (CDD)
It is concluded between the employer and the employee with a defined end date in order to meet a specific and punctual need of the company.
The fixed-term contract can be renewed twice, and the maximum duration is 2 years.
- The seasonal employment contract
It allows an employer who has to carry out repeated work each year at the same time to temporarily have some workforce.
A seasonal contract cannot exceed 10 months for the same 12-month period, including renewals.
The seasonal contract does not have an exact end date. It may provide for a conditional deadline with a minimum duration for which the contract is concluded. Generally, it ends when the purpose for which it was concluded is achieved or when the agreed term expires.
- The temporary agency work
It allows an employer to temporarily have workforce to perform a specific and non-permanent task.
The temporary employment is a triangular relationship which involves two different contracts in parallel:
- An assignment contract between the temporary worker and the temporary employment agency.
- A labor supply contract between the temporary employment agency and the worker.
The assignment contract has a fixed end when it is concluded.
For the same employee and for the same position, the duration of the assignment contract cannot exceed 12 months, including renewals.
- The employment reintegration contract
It was set up to promote the professional reintegration of job seekers aged at least 45; workers with reduced working capacity; and disabled employees.
You must have been registered with ADEM for at least one month to be eligible for this contract.
The contract lasts for 12 months.
The job seeker is entitled to 2 days of leave per month.
ADEM pays a monthly allowance to the job seeker and the employer may provide an optional merit bonus to the job seeker.
- The professionalization internship
It was set up to promote the professional reintegration of jobseekers aged 30 or over; workers with reduced working capacity; disabled employees.
You must have been registered with ADEM for at least one month to be able to do a professionalization internship in a company.
The maximum duration of the professionalization internship is 6 weeks. It can be extended to 9 weeks for people considered as highly qualified (holders of Bachelor’s degree or higher) if the position matches their qualifications.
The job seeker is entitled to 2 days of leave per month during the internship.
ADEM pays an internship allowance of 41.67€ per month to the intern.
Home Office
Home Office is a form of work organization that uses information and communication technologies so that work can be performed in a location other than the employer's premises.
The implementation of home office must be the subject of a bilateral agreement between the employer and the employee.
Regarding cross-border workers, the number of home office days is fixed by bilateral agreement between the Luxembourgish government and the countries concerned.
As of January 1, 2023:
- Belgian cross-border workers benefit from 34 days of home office per year
- French cross-border workers benefit from 34 days of home office per year
- German cross-border workers benefit from 19 days of home office per year rising to 34 days by 2024
Luxembourg residents do not have any limit in terms of the number of home office days.
Note that if a cross-border worker exceeds the maximum threshold, the salary received for all hours worked in the country of residence is taxable in the employee's country of residence. Additionally, if a cross-border worker exceeds 50% or more of their working time in their country of residence, the employee must register with the statuary social security institutions of that country.
Now that you know more about laws and working conditions in Luxembourg, do not hesitate to visit our job board to find your dream job.
Source: Guichet.lu
