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Current Region & Language
Current Region & Language
Currency
Euro
Employer Taxes
Approximately 12.45% of gross salaries for social security.
Payroll Frequency
Monthly
Language
Luxembourgish, French, German
Date Format
DD/MM/YYYY
Luxembourg By The Numbers
645,000
Population
EUR 85 billion
GDP
9
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are entitled to various types of leave, including holiday leave, sick leave, and parental leave (such as paternity, maternity, and general parental leave). Additionally, there are special personal leaves, such as marriage leave, care leave, and educational leave, which may include training leave for staff representatives. Other leave types include palliative leave, political leave, linguistic leave, and social mandate leave.
Employment Contracts
Although labour law recognises the validity of an oral contract, it is strongly recommended to conclude a contract in writing, detailing the nature and conditions of the work relationship. Employment contracts concluded orally are automatically deemed to be permanent employment contracts.
Types of Employment
Employees, temporary agency workers, and independent contractors are all recognized types of employment.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
In labor law, there is a legal presumption that rendering services establishes a labor relationship. It is the responsibility of the employer to prove otherwise. Several factors are considered in this determination: 1) absence of subordination; 2) the independent contractor (IC) has control over when and where the work is performed; 3) no exclusivity in the work arrangement; 4) the IC assumes business risks; 5) the IC uses their own equipment; 6) the IC covers their own business expenses; 7) the IC has not previously been an employee of the company providing services; and 8) payment is made without deductions such as employment taxes and other withholdings.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
Social minimum monthly wage is 2,570.94 EUR gross per month for unskilled worker and 3,085.11 EUR for skilled workers (at the current index of 1 September 2023).
Medical Benefits
Employers have the obligation to continue to pay the Employee’s salary during sick leave until the end of the month during which the 77th day of sick leave occurs. The period of 77 days is counted in calendar days (and not in working days) during which the employee was declared on sick leave for the 18 calendar months prior to the month in progress (reference period).
Probationary Periods
Probation period can be set for a minimum of two weeks up to 12 months, provided some exceptions, and must be included in the employment contract to be enforced.
Termination Notice
The notice period that the Employer must observe varies with length of service: 1) during probation: the employment contract cannot be terminated during the first 2 weeks in the trial period but thereafter, where the duration of the trial period is indicated in weeks: the notice period is as many days as the trial period has weeks and where the duration of the trial period is indicated in months, the notice period is 4 days per month trial period without being shorter than 15 days and without exceeding 1 month; 2) with less than 5 years of service, the notice period is 2 months; between 5 and less than 10 years of service, the notice period is 4 months, with 10 years of service or more, the notice period is 6 months.
Severance
Yes, if the employee worked 5 years or more. Severance pay depends on the employee’s length of service on the last day of the notice period.
Pre-hire Checks
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Legal Disclaimer
The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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