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Employment Contracts in Luxembourg

1. Minimum Requirements

The employment contract is individual and must exist in writing from the start of the employment. There must be two copies of the contract: one for the employer and one for the employee.

Only the employee has the right to establish by any means the existence of the contract in the event no written employment contract exists.

Employment contracts concluded orally are automatically deemed to be permanent employment contracts.

2. Fixed-term/Open-ended Contracts

The standard contract in Luxembourg is the open-ended contract. A fixed-term contract is prohibited for permanent works. It is permitted only in order to carry out a specific type of work over a defined period of time.

By principle, the fixed-term contracts cannot exceed a duration of 24 months including the possibility of two renewals. This type of contract must include additional criteria:

  • the activity,
  • a reference to the term of the employment contract and,
  • where appropriate a renewal clause.

If a compulsory element is not included, the fixed-term contract shall be deemed an indefinite employment contract.

3. Trial Period

An agreed trial period may be written in both indefinite and fixed-term contracts. The general principle is that the trial period cannot be less than two weeks and not more than six months, depending on the qualification of the employee.

Employment cannot be terminated by one party during the first two weeks of the trial period.

For more information on these articles or any other issues involving labour and employment matters in Luxembourg, please contact Christian Jungers, Partner at KLEYR | GRASSO (www.kleyrgrasso.com) at christian.jungers@kleyrgrasso.com
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