1. Minimum Working Conditions
The Labour Code provides for minimum working standards. The parties to the employment contract may only deviate from the Labour Code in a way more favourable for the employee.
Senior executives are excluded from the application of certain rules (for instance, the rules on working time). The Labour Code defines senior executives as employees enjoying a higher level of remuneration in comparison to other employees falling under the scope of a collective bargaining agreement and effective and real management powers, a well defined authority, independence and freedom regarding working hours.
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.
The current minimum wage is:
- 1,922.96 € (current index 775.17) for non-qualified workers, and
- 2,307.56 € for qualified workers.
Salaries are paid on a monthly basis, generally at the end of the month. Even if it is not required for the employer, it is common to provide to the employee benefits in addition to the basic salary such as luncheon vouchers or additional health insurance depending on the employee’s position.
3. Maximum Working Week
Standard working time is limited to 8 hours per day and 40 hours per week, excluding higher-ranking employees (senior executives). The maximum limit is that a working day may never exceed 10 working hours and a working week may never exceed 48 hours. A rest period of 11 hours every 24 hours and of 44 hours for every 7-day period must be respected. In addition, collective bargaining agreements may provide for other (longer) breaks.
In Luxembourg, the overtime is strictly regulated by law and is only permitted with a prior authorization from or a notification to the Minister for Employment. Where permitted, overtime is limited to two working hours per day and within the limit of 48 hours per week. For any overtime worked, employees are entitled to compensation in salary or free time.
Each employee benefits from a minimum of 25 days paid leave per year. Some collective bargaining agreements provide for more holidays (for example in the banking and insurance sectors).
There are 10 statutory public holidays established by the Labour Code. They are the 1 January, Easter Monday, 1 May, Ascension Day, Whit Monday, 23 June for the public celebration of the Grand Duke’s anniversary, Assumption Day, 1 November for All Saints’ Day, 25 December for Christmas Day and 26 December.
6. Employer’s Obligation to Provide a Healthy and Safe Workplace
The health and safety of employees must be guaranteed by the employer in every aspect of work and they must be affiliated with an authorized Health and Safety Service.
The employer is obliged to take all appropriate measures necessary for the protection of health and safety, including activities aimed at preventing professional risks, appropriate information and adequate health and safety training.