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Employment Law in Luxembourg

Employment Law in Luxembourg

Updated on Sunday 15th May 2016

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Employment-Law-in-LuxembourgEmployment in Luxembourg falls under the regulations of the Labor Code first enabled in 2006 which provides for both national and foreign citizens working in the Grand Duchy. However, it must be taken into accounts that nationals of certain countries are required to apply for an employment pass before starting to work in Luxembourg. Employment regulations are enforced by the Ministry of Labor and Employment.

Labor contracts under the Luxembourg Employment Law

The Luxembourg Labor Law makes a clear distinction between employees who are categorized at it follows into regular workers and senior executives. However, the employment contract will have the same form for both types of employees. Labor contracts in Luxembourg are regarded as contracts through which an employee agrees to work under the authority of an employer. There are two types of work contracts in Luxembourg:

  • -          fixed-term employment contracts;
  • -          permanent employment agreements.

Fixed-term labor contracts cannot exceed 2 calendar years and can only be renewed twice.

Labor contracts in Luxembourg must contain the following elements:

  • -          the name and address of both employee and employer;
  • -          the effective date of employment;
  • -          the location where the work will be carried;
  • -          the services to be rendered;
  • -          the remuneration for the services rendered;
  • -          the working hours;
  • -          information about the employee’s registration for social security purposes;
  • -          the taxes to be withheld from the salary.

Our lawyers in Luxembourg can provide you with information about content of employment agreements.

Rights of employees in Luxembourg

No matter the type of contract concluded, all employees have certain rights attached to the obligation of fulfilling their service for the Luxembourg company employing them. The Employment Law in Luxembourg establishes a national minimum salary which depends on the qualifications of the workers. Also, workers are entitled to paid leave, sick leave and payment for the duration of the leave. The employee is also protected against dismissal for the duration of the sick leave. For employees working under extraordinary conditions, other rights may arise.

For full information about the Luxembourg Labor Law, do not hesitate to contact our local law firm.

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