Luxembourg: New Collective Bargaining Agreement for Bank Employees 2021-2023

After lengthy discussions, the new Collective Labour Agreement for bank employees 2021-2023 was signed by the ABBL and the unions ALEBA, LCGB-SESF and OGBL Financial Sector on 10 June 2021 (CBA).

The CBA has entered into force retroactively as of 1 January 2021.

The main changes are as follows:

Remuneration: All employees will receive a salary increase of at least 0.7% in 2022 and 0.5% in 2023. In addition, any salary increases when changing groups cannot be less than EUR 15 (index 100) i.e. EUR 125.21 (current index 834.76).

Telework: The employer must compensate the costs directly caused by regular telework to a minimum of EUR 3.00 (index 100) i.e. EUR 25.00 (current index 834.76) per month.

Right to disconnect: The employer must set up a system ensuring respect for the right to disconnect and is adapted to the specificities of the company.

The system must define, in particular, the practical arrangements and technical measures for disconnecting from digital tools, awareness-raising and training measures and compensation arrangements in the event of exceptional derogations to the right to disconnect.

The system is to be defined at the company level by the employer after consultation with the staff delegation (or mutual agreement from 150 employees). If there is no staff delegation, the employer should inform the employees of the scheme.

Social leave: Employees are now entitled to a minimum of 5 days social leave per year.

Annual leave: Additional days of leave are granted depending on the age of the employee, i.e.:

• 1 day of leave for employees aged between 45 and 49;
• 5 days of leave for employees aged between 50 and 54;
• 5 days of leave for employees aged 55 and over.

Moreover, the extra day of leave related to a professional career of 25 years or more has been removed.

Work-life balance: At the request of the staff delegation, the employer must discuss an agreement to improve work-life balance. The modalities to be set up and the discussions may concern, in particular, the reduction of working hours, the flexible organisation of working hours, the setting up of a Time Savings Account (“compte épargne temps”), etc.

Psychosocial risks: the employer, in cooperation with the staff delegation, must put in place structured measures to prevent psychosocial risks.

Key Action Points for Human Resources and In-house Counsel 

• Update of the Telework Policy, and/or Telework addendum, if any, to include the cost of telework covered by the employer or do not forget to include this minimum amount in future Telework Policy and/or Telework addendum;
• Setting up mechanisms (i.e.: in the internal regulation or specific policy) to ensure that the principle of employees’ right to disconnect is respected. According to the specificities of the company these mechanisms may be the following:
  • blocking access to the company’s server during certain daily and weekly time periods;
  • leaving digital equipment in the company’s premises.