Recruiting and hiring employees in Luxembourg can be a complicated endeavor. A variety of nationalities can be found in labor market — including employees from Belgium, France, and Germany — and while having a multicultural talent pool is a valuable asset, it also adds to the complexity as companies must ensure compliance and proper visa arrangements. Plus, the prevalence of Collective Bargaining Agreements (CBAs) means there are additional regulations to adhere to.

Recruiting in Luxembourg

You can use a variety of methods to advertise your open positions, but one of the best options for recruiting in Luxembourg is using online job boards. Websites such as www.jobs.lu and www.jobfinder.lu will give you a space to post your openings and connect with potential candidates.

Another promising option is attending employment fairs. These events occur regularly, and companies can leverage these events to share open positions and network. 

Background checks

Before advertising a vacant position, employers must declare it to the National Employment Agency (ADEM) at least three working days in advance. Once you identify a potential candidate, you can conduct an interview or selection test.

Companies are also allowed to request a certificate regarding an individual’s criminal record. This request must be submitted in writing and relate to the position’s specific needs. You must also indicate the request in the job offer.

Additional points of consideration include:

  • Companies must destroy the criminal record no later than 1 month after the end of the employment agreement.
  • Employers must promptly discard the criminal record if the candidate isn’t hired.
  • Companies can ask for a copy of an employee’s criminal record if a new assignment justifies a new evaluation.

Laws against discrimination in Luxembourg

While you’re recruiting your Luxembourg team, avoid asking questions about age, sexual orientation, marital status, politics, religion, health, disability, and racial or ethnic origins. Generally, employers should only ask questions related to the qualifications and suitability of the candidate.

How to hire employees in Luxembourg

The hiring process in Luxembourg starts with an employment contract. Employment contracts should be in writing, in duplicate, no later than the employee’s start date. They must outline the start date, workplace, nature of work, work schedule, compensation, and paid annual leave. Wages are usually paid in euros, and non-cash benefits are valued in euros for payroll purposes. However, salary and benefits don't need to be stated exclusively in euros by law. Changes to agreed employment terms need a written amendment signed by the employer and employee.

There are different types of employment contracts, including:

  • Permanent employment contract: This is the standard contract that ends by termination or resignation.
  • Fixed-term employment contract: This type of contract ends after a specific period.

Luxembourg employment laws

Employment law is regulated in Luxembourg by domestic law, in particular the Labor Code, the Social Security Code, and the amended law on the free movement of persons and immigration. CBAs are also common in Luxembourg and can include information about everything from minimum wages to working hours for specific industries. When hiring Luxembourg employees, make sure to review both the statutory requirements and any CBAs.

A typical workday is eight hours and a standard workweek is 40 hours. Overtime or reference periods allow up to 10 hours per day and 48 hours per week. Employers must follow a specific procedure for overtime, including notifying the Inspectorate of Labor and Mines of any additional hours worked.

Onboarding in Luxembourg

There is no standard onboarding process as employers should tailor the experience to include specific elements of company culture and values. During the employee’s first week, it’s important to establish any training requirements to set the new hire up for success. Consider creating training modules or videos to get employees acclimated to certain workflows.

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