Employees’ Rights in Case of a Transfer of Undertaking In case of a business transfer, all employees, rights and duties arising from an employment relationship with the seller that already existed on the date of the transfer are automatically transferred to the buyer. After a transfer of undertaking, employees are, as the case may be, […]
Definition and Types of Restrictive Covenants The sole restrictive covenant that is regulated by the Labour Code is the non-compete clause. The following restrictive covenants are recognised and may be enforceable under the law: Non-compete clauses; Non-solicitation of customers; Non-solicitation of employees. Enforcement of Restrictive Covenants—process and remedies Under the Labour Code, there is no […]
Grounds for Termination Grounds for termination of employment contracts include: Mutual agreement; Resignation with notice by the employee; Resignation by the employee for gross misconduct of the employer; Dismissal during the trial period; Dismissal with notice for real and serious cause based on the employee’s attitude; Dismissal for gross misconduct; Redundancy; Closure of business; Retirement; […]
Can the employer monitor, access, review the employee’s electronic communications? Usually, each employee is assigned an e-mail address for his/her professional activity by the employer. This e-mail address and the corresponding mailbox are, as the emails are supposed to be sent and received in the name of the employer, the property of the latter. However, […]
Extent of Protection The discrimination grounds prohibited are religion, conviction or belief, disability, age, sexual orientation, real or assumed belonging to an ethnic group. Criminal law also prohibits discrimination if it is based on gender, sexual orientation, health issues or disability, nationality, real or assumed ethnic background or origin, political or philosophical belief, and union […]
Salary Parties are free to negotiate the employee’s basic salary, but they must respect the minimum social wage, which applies to all employees in Luxembourg. The applicable minimum wage varies according to the professional qualification of the employee and according to an index. Luxembourg’s minimum wage increased by 1.1% at the start of 2019. The […]
Minimum Requirements The employment contract is individual and must exist in writing from the beginning of the employment period. There must be two copies of the signed 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 […]
Requirements for Foreign Employees to Work EEA Nationals EU citizens are entitled to reside in Luxembourg for more than 3 months if they meet one of the following conditions: i) they work as an employee or are self-employed; ii) they have the resources required to ensure that they or their family members are not dependent […]
A draft law number 7016 on flexible working time arrangements was introduced on 27 July 2016. The current legal provisions will no longer be in force from 1st January 2017.
Pursuant to EU and Luxembourg case law, the simple change of service provider by a company can entail the application of the TUPE regulations in place (and thus an automatic transfer of the employment contracts). A recent decision does however no longer highlight the aforementioned distinction and employers active in Luxembourg should be aware of the risk that, even if an activity is mainly asset based (rather than manpower related), Luxembourg courts tend to consider that the TUPE regulations should also apply if the new service provider takes over employees. In such a case, all in-scope employees’ employment contracts would then automatically be transferred to the new service provider and would either have to be (i) terminated or (ii) the employees granted the rights they had before during the relationship with the former service provider.