On July 24, 2024, the National Assembly of Luxembourg voted in favor of the law amending the Luxembourg Labor Code in order to comply with European Directive 2019/1152 on transparent working conditions. This law was published on August 4, 2024.
The objective of this directive is to promote a more transparent and predictable labor market for all EU workers bound by one or more employment contracts, depending on the legislation, collective agreements or practices in force in each Member State.
This implementing law in Luxembourg introduces several major innovations:
New mandatory provisions will need to be included in employment contracts (e.g. for employees, apprentices and temporary workers), such as information on the overtime regime, termination rules, trial period, right to training, where applicable, as well as details on the distinction between basic salary and supplements, where applicable. With regard to the trial period, the right to training and the termination rules, single references to the relevant provisions of the Labor Code may be made instead of detailed clauses on these subjects.
Exclusivity clauses, which prevent an employee, temporary worker or apprentice from having other employment outside of agreed working hours, are now prohibited, provided that this does not harm the employer's commercial interests (for example, in relation to confidentiality, health and safety, or conflicts of interest).
The duration of the trial period for fixed-term contracts cannot be less than two weeks, nor more than a quarter of the duration of the fixed contract.
Workers will have the opportunity to move to another form of employment offering more predictable and secure working conditions, that is to say, those with at least six months of seniority with the same employer will be able to request a conversion from their fixed-term contract to a permanent contract, or from part-time employment to full-time employment.
The employer must, within one month of receiving the request, either convert the employee's contract into an indefinite contract or provide detailed written motivation.
Failure to comply with these provisions may result in a fine ranging from 251 to 5,000 euros per employee, apprentice or temporary worker concerned, with this fine potentially being doubled in the event of a repeat offense.
New employment contracts signed from August 4, 2024 must comply with these new rules. For contracts signed before this date, employees will have the right to request an update of their contract, and the employer must comply within two months of receiving the request.