Luxembourg is not to be judged by it's small land mass. The country makes big bucks and is a major player in the financial service sector. During the work week thousands of people commute from the neighbouring countries of Belgium, France, and Germany.

Working hours

Working hours vary according to your employer, your position, the industry. The legal work week can be no longer than 40 hours. If you work additional hours, you must be paid overtime. There is a legal maximum working day of ten hours. Work on Sunday work must be voluntary and is paid at double the normal salary rates. These restrictions generally do not apply to top executives (direction/directie) or managers (cadres/kaderleden) or if you own your own company.

Flexi-Time

Some companies operate flexi-time working hours. A flexi-time system requires all employees to be present between certain hours, known as the block time, and then working the rest of their requisite hours at their leisure. For example, all staff must be present from 8:30 to 11:30 and from 13:30 to 16:00.

Wages

The current minimum wage is 1,757.56 euro per month. There is a lower minimum wage for workers under 23 and workers under 18 years of age.

Luxembourg is a prosperous region with salaries generally above average. Salaries depend on your age and job advertisements will list a desired age range that indicates the salary. Annual salary increases are often controlled by an industry collective agreement and linked to cost of living increases.

Contract

Most jobs are under contract. An employment contract must be in writing and the employee should read and understand all conditions before signing. The legally binding version of an employment contract is normally in French, but you can and should ask for an informal translation in your own language. You may also ask a trusted advisor (i.e. a lawyer or close friend) that is fluent in that language to inspect it.

There are three different kinds of employment contracts:
• Limited Time Contract - Ends after a set period of time.
• Specific Work Contract - Usually is for specific work and when the work is completed, the contract is finished.
• Indeterminate Contracts - For permanent jobs which can only be terminated according to the terms of the contract regarding notice periods and severance pay.

Expats

Expat workers may be required to submit a copy of the employment contract to local officials for a residence permit. Make sure to obtain a copy for your records and have an official copy to submit to the authorities.

Termination

Demission is when termination comes from the employee and licenciement when termination comes from the employer. There is also "résiliation d'un commun accord", termination by mutual agreement. The only requirement is that case is that the agreement must be confirmed in writing.

The other types of termination:
• Termination with Notice - Either party may terminate the contract by giving the required period of notice stated in the contract. In the case of dismissal by the employer, there must be reasonable and substantial grounds relating to the employee's conduct or competence. The employee is entitled to receive a written statement of these reasons. In addition, an employee with at least five years service is entitled to severance pay (as stated in the contract).
• Termination for Grave Cause (résiliation pour motif grave) - Either party may terminate the contract without notice when there is grave cause deriving from an act or misconduct by the other party. If initiated by the employer, this may result in the loss of severance pay. Notification of summary dismissal for grave cause must be given in writing, stating the act or misconduct invoked, within one month of the date on which it came to the employer/employee's knowledge.

Time Off

• New Year's Day - 1 January
• Carnival (Note: Not all businesses are necessarily closed this day) - 7 March
• Good Friday (Note: Not strictly a bank holiday in Luxembourg, but a number of businesses and banks are closed this day.) - 22 April
• Easter Monday - 25 April
• May Day - 1 May
• Ascension Day - 2 June
• Whit Monday - 13 June
• National Day - 23 June
• Assumption Day - 15 August
• Luxembourg City Fete (Note: Not strictly a bank holiday, but many businesses and banks are closed this day) - 5 September
• All Saints Day - 1 November
• All Souls Day (Note: This is not strictly a bank holiday, but many businesses and banks are closed on this day) - 2 November
• Christmas Day - 25 December
• St. Stephen's Day / Boxing Day - 26 December