Luxembourg

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Luxembourg. See a sample of popular sections below.

Termination of Employment

In Luxembourg, the required notice period for termination of an employment contract depends on the duration of the employee's service and is as follows:

  • Under 5 years of service – 2 months' notice period
  • Between 5 and 10 years of service – 4 months' notice period
  • More than 10 years of service – 6 months' notice period

The notice period can be waived if the responsible party pays compensation in lieu of notice to the other party. 

The employer can dismiss the employee without notice in cases of gross misconduct. 

Work Permits

Third-country nationals who wish to carry out a salaried activity in Luxembourg for more than three months must obtain a residence permit for working. Citizens of EU member countries do not require a permit to work in Luxembourg.

The application for a residence permit must be submitted to the Immigration Directorate of the Ministry of Foreign and European Affairs within three months of entry into Luxembourg.

The first residence permit for employees is valid for a maximum of one year for a particular job in one sector with all employers. As of the first renewal, the residence permit is renewable for a maximum duration of three years and gives access to any sector and any profession.

Paid Annual Leave

The Labor Code of Luxembourg grants a total of 20 weeks of paid maternity leave to pregnant employees: 8 weeks before and 12 weeks after childbirth.

It is prohibited to employ a pregnant woman in night work. Pregnant employees and nursing mothers cannot be required to work overtime.

During the employee's absence due to maternity leave, the employer is required to hold the job for the employee, or, if it is not possible, a similar job corresponding to her qualifications and with at least an equivalent salary. An employee cannot be dismissed during her maternity leave. 

Working Hours

The Labor Code of Luxembourg dictates that working hours cannot exceed 8 hours per day and 40 hours per week. In exceptional cases, working hours may be extended to up to 12 hours, compensated with an extra holiday, so that the average weekly working hours do not exceed 40 hours over four weeks. The standard working time of night workers may not exceed eight hours, on average per 24-hour period calculated over 7 days.

Employees must be employed by an organization with the capacity for remote work in order to request the option. Any employee of a Luxembourg company governed by private law hired under a fixed-term or indefinite-term contract can participate in telework. When remote work occurs consistently, rules must be agreed upon by both parties in writing. Employers are prohibited from contacting employees during non-working time in violation of their right to disconnect.

Maternity Leave

The Labor Code of Luxembourg grants a total of 20 weeks of paid maternity leave to pregnant employees: 8 weeks before and 12 weeks after childbirth.

It is prohibited to employ a pregnant woman in night work. Pregnant employees and nursing mothers cannot be required to work overtime.

During the employee's absence due to maternity leave, the employer is required to hold the job for the employee, or, if it is not possible, a similar job corresponding to her qualifications and with at least an equivalent salary. An employee cannot be dismissed during her maternity leave. 

Minimum Wage

The Labor Code of Luxembourg states that employee salary cannot be below the social minimum wage. 

The current social minimum wage is EUR 2,570.93 (euros) per month for employees aged 18 and over. The applicable minimum wage is increased by 20% for a skilled worker and decreased by 20% to 25% for employees under 18 years of age.

 

 

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Luxembourg.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Luxembourg.