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:
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.
Third-country nationals who wish to carry out a salaried activity in Luxembourg for more than 3 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 3 months of entry into Luxembourg.
The first residence permit for employees is valid for a maximum of 1 year for a particular profession in 1 sector with all employers. As of the first renewal, the residence permit is renewable for a maximum duration of 3 years and gives access to any sector and any profession.
Third-country nationals who wish to work as highly qualified workers in Luxembourg for a period of more than 3 months can apply for an 'EU Blue Card.' EU Blue Card is a combined work and residence permit designed for highly qualified non-EU nationals. They must hold a valid visa to work, have an employment contract of at least 6 months for highly qualified work, and be offered an annual salary at least equal to the amount set by Grand-Ducal regulation (EUR 65,652). They must be able to prove the qualifications required for the job. After 5 years of regular and uninterrupted residence on EU territory as an EU Blue Card holder, of which the last 2 years preceding the application were spent in Luxembourg, third-country nationals can apply for long-term resident status.
All employees are entitled to a paid recreational leave of 26 days per year, regardless of their age. Sundays and statutory holidays are not included in annual leave. If, during the annual leave, the employee falls sick, the days of sickness recognized as such by the medical certificate are not considered a part of paid annual vacation.
The right to annual leave is acquired after 3 months of work with the same employer.
The leave can be taken all at once or split on request of the employee, in which case one of its parts must be at least 2 weeks long. The leave must be taken within the calendar year or postponed until March 31 of the next year.
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.
Effective June 23, 2026, employees will be entitled to a right to disconnect after working hours. It applies to all employees using digital tools for professional purposes, without distinction of role or seniority. Employers are required to implement a specific framework—through collective agreements or company-level policies—defining how this right is ensured in practice. This framework must include practical, technical, and organizational measures such as limiting after-hours communication and raising awareness. In case of non-compliance by the employer, they can be liable to an administrative fine of EUR 251 to 25,000, imposed by the Director of the Labour and Mines Inspectorate, depending on the circumstances and the seriousness of the breach.
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.
The Labor Code of Luxembourg states that employee salaries cannot be below the social minimum wage.
Effective June 1, 2026, the current social minimum wage is EUR 2,771.33 (euros) per month for employees aged 18 and over.
The Labor Code requires employers to pay wages at the end of each month and within 5 days of contract termination. The statute of limitations for unpaid wages and any other type of remuneration is 3 years.
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