Labour code Luxembourg: New law for transparent and predictable working conditions

Luxembourg has amended its labour code to implement the EU Directive 2019/1152 on transparent and predictable working conditions: Employees should have improved access to essential information relevant to their employment relationship. The new regulations came into force on 4 August 2024. The Ecovis consultants know what companies need to do now.

Key changes in employment contracts

The law mandates several new clauses and modifications within employment contracts, apprenticeship agreements, and student work contracts. Employers are now obliged to provide clear contract specifications including:

• The identity of the parties involved
• The start date of the contract
• Work location details
• Job descriptions and responsibilities
• Normal working hours and remuneration, including any bonuses
• Paid leave entitlements and termination procedures
• Details regarding trial periods and applicable collective agreements

These requirements not only ensure clarity but also aim to promote secure and predictable employment for workers.

Update your employees’ employment contracts in accordance with the new legal regulations.

Arnaud Yamalian, Partner, ECOVIS IFG Audit S.A, Luxembourg

Enhanced employee rights

Among other significant changes, the law also introduces:

• A limitation on the duration of trial periods in fixed-term contracts
• The right for employees to request a change from temporary to permanent contracts
• A commitment from employers to provide training at no cost during working hours

These provisions underline the efforts to foster a more predictable work environment for employees.

Stricter Enforcement and Sanctions

Employers are now subject to strict penalties for non-compliance. Fines ranging from EUR 251 to EUR 5,000 may be imposed for failing to adhere to the new information requirements, with increased fines for repeat offences within two years.

For further information please contact:

Arnaud Yamalian, Partner, ECOVIS IFG Audit S.A, Luxembourg
Email: arnaud.yamalian@ecovis-audit.lu