Employment Contract in Luxembourg: Fixed-Term, Permanent and Obligations

Permanent vs. fixed-term: legal framework

The permanent contract is the default contract in Luxembourg. A fixed-term contract can only be entered into for specific reasons: temporary replacement, exceptional increase in activity, seasonal work, or contract tied to a specific project. A fixed-term contract cannot exceed 24 months, including renewals (maximum 2 renewals). Beyond that, it is automatically reclassified as a permanent contract. Abusive use of fixed-term contracts exposes the employer to judicial reclassification with compensation.

Mandatory contract clauses

• Identity of the parties (employer and employee)
• Start date of the contract and duration of the trial period
• Place of work and description of the position / function performed
• Weekly working hours (40 hours legal, unless a collective agreement provides otherwise)
• Gross remuneration and any benefits in kind
• Duration of annual leave (minimum 26 working days)
• Notice periods in case of termination
• Reference to the applicable collective bargaining agreement (if any)

Trial period

The trial period must be included in the contract to be valid. Its duration ranges from 2 weeks (for employees with a training level below CATP) to 6 months (for employees whose monthly compensation exceeds the contribution cap, about 13,500 euros). For most employees, the standard duration is 3 to 6 months. During the trial period, either party can terminate the contract with a shorter notice and without cause.