Changes to the Luxembourg Labour Code: what's new for you?

On 24 July, the Luxembourg government decided to amend certain articles of the Labour Code in order to comply with the European directive on transparent and predictable working conditions. The new measures came into force on 4 August 2024 and affect all Luxembourg employment contracts.

Addition of new mandatory elements to contracts

Employers must now include the following information in their contracts (fixed-term, open-ended, apprenticeship and student contracts):

• Job description ;
• Break times;
• Public holidays;
• Overtime entitlement;
• The full remuneration package: entitlement, suspension, date of availability, etc. ;
• The date and terms of salary payment;
• How the employment contract can be terminated (for both the employee and the employer);
• the identity of the competent social security body (most commonly the CCSS, but it may be another body);

In addition, if an employee leaves the company after taking a training course, the employer can no longer demand its reimbursement.

Specific changes for fixed-term contracts

The law makes the following changes specifically for fixed-term contracts:

• The trial period has been reduced to ¼ of the length of the contract, compared with a maximum of 50% previously;
• An employee who has been on a fixed-term contract for at least 6 months and whose trial period has expired may request that his or her contract be treated as an open-ended contract, with all rights and obligations retained; the employer then has 1 month to accept or refuse. If the employer refuses, they must state the precise reasons for their refusal in writing;
• An employee who has been on a fixed-term contract for at least 6 months and whose trial period has ended may request that his or her contract be changed to full-time or part-time; again, the employer has 1 month to accept or refuse. If the employer refuses, they must state the precise reasons for their refusal in writing.

Specific changes for student contracts

Employers must now include the following information in student contracts:

• Job description ;
• The date and terms of payment of salary;
• The identity of the competent social security body (generally the CCSS).

Changes in the case of secondment

If you are seconded for more than 4 weeks, your employer must now provide the following information in a specific document:

• The country or countries in which the secondment will take place;
• The method of payment of salary and the currency used;
• The additional benefits offered as a result of the secondment;
• Repatriation conditions.

Implications for employers

Luxembourg employers will have to update their employment contracts to include the above elements. The law provides for penalties ranging from €251 to €5,000 per employee if the employer fails to comply with these new obligations, or twice that amount if the offence is repeated within 2 years.

Any questions?

Don't hesitate to contact our legal department if you have any questions about your employment contract! Write to us at legal@aleba.lu or via your MyALEBA space.