Staff - Luxembourg

Updated 01/2010

Legal requirements

The Labour Code covers the requirements for managing staff.

Labour Code [3 MB]

A collective agreement is a provision specific to a given company. It is concluded between the representatives of the employer and the staff. It supplements the rules laid down in the Labour Code according to the needs and special features of the company.

Applying the agreements to all of the staff concerned

Employment conditions

Every employer has to safeguard the health and safety of his employees by appointing one or more workers to manage occupational risks.

The managing director is also required to:

ensure that all employees undergo a medical examination ;
comply with anti-smoking legislation in the workplace;
notify the Inspectorate of Labour and Mines (Inspection du travail et des mines - ITM) and the Accident Insurance Association (Association d'assurance contre les accidents) when an employee has an accident;
appoint staff representatives if the company employs fifteen or more workers under an employment contract;
set up a joint committee if the company has at least 150 employees over a three-year period;
organise staff elections.
Health and safety at work
Staff representation - Organising staff elections
Powers of staff representatives

When it comes to remuneration, the employer must meet his obligations in relation to:

the statutory minimum salary;
the flexible salary scale;
the law on equal treatment
the remuneration matrix where there is a collective agreement.
Determining the salary

Working time is set at 8 hours a day or 40 hours a week.

Working hours

The employer must comply with certain rules covering dismissal or end of contract for his employees.

Termination of employment

Employment contracts

The employer must draw up a contract of employment with his new staff. The types of contracts available are: indefinite duration, fixed term, seasonal, student or apprentice - although they may also take the form of an internship agreement.

Drawing up an indefinite contract
Drawing up a seasonal employment contract
Drawing up a student contract
Drawing up an apprenticeship contract
Drawing up a training contract or agreement
Amending an employment contract

Employing foreigners

Any citizen of the EU or a an associated country (Iceland, Liechtenstein, Norway or Switzerland) can live and work in Luxembourg.

Entering and staying in Luxembourg as an EU citizen
Entering and staying in Luxembourg as a family member of an EU citizen

Having notified a vacant position to the Administration de l'emploi, if the employer cannot find a suitable candidate, he may sign a contract with a national of a third country.

Requesting a long-term residence permit for a citizen of a non-EU third country
Hiring an applicant from a third country
Hiring a highly qualified worker from a third country

There are minimum social rules to follow, especially about non-discrimination, gender equality and health and safety.

Staff welfare — Luxembourg

Administrative procedures

Starting and ending employment

If a director wants to recruit staff, he or she must inform the Employment Administration (Administration de l'emploi - ADEM) of the vacancies in advance.

Declaring a vacancy - ADEM
Forms for different types of vacancy

Every company director must ensure that all employees undergo a medical examination. The form for this must be sent to the relevant regional Multi-sector Occupational Health Service (STM).

Multi-sector Occupational Health Service
Employer application form

Social security contributions

Employers must send the Joint Social Security Centre a declaration of start of employment and end of employment within 8 days.

Centre commun de la sécurité sociale (Joint Social Security Centre)
Declaration of start of employment for temporary workers
Declaration of end of employment

The operating declaration is valid throughout the company's entire existence. The company also receives a certificate of affiliation with a registration number.

Form for the operating declaration

You must inform the Joint Social Security Centre on a monthly basis of the amount of time workers are unable to work.

Instructions for declaring periods of incapacity
Forms - Joint Social Security Centre

The actions to be taken may vary according to the situation: whether the employee has an accident at work or on the way to work, has a serious accident or contracts a work-related illness. All procedures must be carried out with the Accident Insurance Association (AAA).

Accident Insurance Association
Declaration form for an accident
Medical statement of occupational ill health - form
Employer declaration form

Work permits for foreign workers

In order to stay more than three months in Luxembourg, a citizen of the EU or an associated country must:

hold a valid identity card ;
submit a declaration of arrival to the municipal authorities in his place of residence;
fill in a registration declaration as a citizen of the EU.
Entering and staying in Luxembourg as a citizen of the European Union
Declaring departure and arrival in the place of residence

Having notified a vacant position to the Employment Administration, if the employer cannot find a suitable candidate, he may sign a contract with a national of a third country.

Declaring any vacant post to the Employment Administration

For his part, the third-country national must:

submit a request for a temporary residence permit to the Luxembourg immigration authorities (the Immigration section of the Ministry of Foreign Affairs and Immigration) before entering the country;
apply for a residence permit for a "salaried worker" from the Minister for Immigration when he has obtained a temporary residence permit.
Entry and stay by foreigners
Hiring a salaried worker from a non-EU third country
Residence permit for a third-country national intending to take up paid employment [33 KB]

Dismissal

The dismissal procedures vary depending on whether the employer wishes to give notice or dismiss an employee with immediate effect for gross misconduct, or make mass redundancies.

Giving notice of dismissal
Dismissing an employee with immediate effect for gross misconduct
Making mass redundancies

At then end of the employment contract, the employer must:

draw up a salary statement and settle any outstanding payments;
draw up a certificate of employment;
release the employee;
complete the tax card (fiche de retenue d'impôt) at the end of the employment contract.
Completing the tax card at the end of the employment contract.
Forms: Tax card - Direct Tax Administration

Resources

The Luxembourg Chamber of Trades provides practical information on managing staff.

Luxembourg Chamber of Trades

The Guichet entreprises business portal offers various information on managing staff as well as a guide to employment contracts.

Human Resources - Guichet entreprises
Employment law - Establishing and terminating an employment contract

The Luxembourg Chamber of Private Employees (Chambre des employés privés du Luxembourg - CEPL) offers a wide variety of standard models for official documents or contracts.

Standard models - CEPL

EURES, the European job portal, offers employers information and support on recruiting across the EU. As well as assisting jobseekers, it helps entrepreneurs find workers from across the EU. In border regions, EURES provides information on cross-border commuting and helps workers and employers with problems that may arise.

Programmes

A business may benefit from financial aid from the State for its investments in professional lifelong learning. The National Institute for Continuous Professional Development (INFPC) has a directory of training providers to make employers' lives easier.

Continuous professional development portal
Practical guide to training
Producing a training plan
INFPC directory of training providers [4 MB]

Several bodies provide staff training:

Chamber of Commerce Training Institute (trade, services, transport, finance, insurance and industry);
Chamber of Trades (food, hotels, restaurants and catering, mechanical and metals processing);
Training Institute for the building sector (construction and finishings) ;
Luxembourg Office for increasing productivity (OLAP).

The "lifelong learning" portal also offers different training sessions for business people.

Lifelong learning portal

Check also the legislation on this topic in:

Staff - Luxembourg