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Luxembourg employment law

In Luxembourg, the labour market is characterised by the number of commuters from France, Belgium and Germany, which represents almost 50% of the labour force. In Luxembourg, the social peace is of utmost importance and usually secured by regular dialogue between social partners. Due to the recent codification of employment laws and with recent employment laws voted during the past few years, the Luxembourg labour code is increasing in volume.

For example, we can highlight:

  • The simplification act dated 23 July 2015 reforming the staff representatives in Luxembourg.
  • The law of 8 April 2018 which made numerous amendments to the Labour Code, in particular to better protect employees’ rights and improve the effectiveness of employment measures.
  • The law of 10 August 2018 relating to the benefits employees are entitled to in case of incapacity to work.
  • The entry into force of the GDPR and its impact on monitoring employees.

Key Points

  • The Labour Code came into effect on 1 September 2006 and groups all existing employment rules.
  • Termination of contracts is strictly regulated by the Labour Code with specified notice periods depending on the length of service with the same employer.
  • Right of workers to strike is implicitly guaranteed by the Constitution under the freedom of association, but is only possible under specific circumstances. A peace obligation exists in the frame of a collective labour agreement. Moreover, in order to be legal, every strike or lockout movement must first be referred to the National Office of Conciliation (ONC).
  • Key institutions include the Labour Ministry, the National Employment Administration (Administration pour le développement de l’emploi) which, notably, is in charge of assisting unemployed persons and the Labour and Mines Inspectorate (Inspection du Travail et des Mines), which is responsible for controlling standards of health and safety at work, compliance with employment legislation and supervising working conditions.

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