Hiring employees in Luxembourg can be a complex task. A variety of nationalities dominate the labor market, including Belgian, French, and German workers. Plus, the prevalence of collective bargaining agreements (CBAs) means you have to follow any additional regulations carefully.
Instead of going through the hiring process alone, Globalization Partners can help. We understand every aspect of Luxembourg employment compliance, and we can help you hire and onboard employees in record time.
How to Hire Employees in Luxembourg
The process to hire Luxembourg employees starts with an employment contract. Although not legally required, employers almost always create a written agreement for any formal work relationship. The three kinds of employment contracts include:
- Limited-time contract: Ends after a set period
- Contracts for a specific period: Ends after an employee finishes a particular project
- Indeterminate contract: Ends only after being terminated by the employee or employer and includes notice periods and severance pay
You should draft the employment contract before an employee’s first day in the local language. Include items such as compensation, benefits, and termination notice periods. This agreement should always outline salary amounts or benefits in euros instead of foreign currency.
Luxembourg Employment Compliance
Luxembourg unified all of its employment legislation into the Labour Code in September 2006. This code now governs the relationship between an employer and an employee. CBAs are also common in Luxembourg and can include information about everything from minimum wages to working hours for specific industries. When you hire Luxembourg employees, you’ll need to review both the statutory requirements and any CBAs.
A typical workday in Luxembourg is eight hours with a workweek of 40 hours. However, some employees can opt for a flextime plan of ten hours per day and 48 hours per week as long as their average weekly hours do not exceed 40 over four weeks. Overtime work is generally not permitted under Luxembourg employment compliance laws, but certain exceptions are based on job title and industry.
How to Onboard Employees
Once you hire employees in Luxembourg and write a strong employment contract, it’s time to onboard them. Start by reviewing every detail of the agreement and offer letter before the employee’s first day. Then you can go over any other relevant documents such as a code of conduct, dress code, and more. Your employee should feel comfortable being a part of your company, so take strides to introduce them to others and follow Luxembourg cultural norms.
Benefits of Luxembourg Hiring Outsourcing
Luxembourg hiring outsourcing services provide multiple benefits. Globalization Partners can help you secure top talent and give you the competitive edge you need when first setting up a subsidiary. While you would otherwise need to wait to hire employees in Luxembourg until you set up a subsidiary, Globalization Partners shortens the process. We act as your Employer of Record in Luxembourg and hire employees on your behalf to help you start your business in a matter of days.
Work With Globalization Partners
If you’re expanding your business to Luxembourg, contact Globalization Partners. Our services will give you the head start you need to succeed.