Employment
A codified Labour Code, the EU's highest minimum wage and the labour tribunal
Employment is governed by the Labour Code (Code du travail). Dismissal requires a real and serious cause, with statutory notice scaling by length of service, and disputes go to the labour tribunal. Luxembourg has the highest statutory minimum wage in the EU, indexed to the cost of living.
Key rules
- Dismissal with notice requires a real and serious cause; the employee can demand the reasons in writing.
- Statutory notice periods run from two to six months depending on length of service.
- The statutory social minimum wage is set by law and automatically indexed to inflation.
- Employment disputes are heard by the labour tribunal (Tribunal du travail).
Governing law
- Labour Code (Code du travail)Consolidated employment law
Penalties and consequences
- Damages for unfair dismissal without real and serious cause
- Compensation in lieu of notice where notice is not respected
In practice
The automatic wage indexation (index) periodically raises pay across the board, a distinctive feature employers must budget for. A dismissed employee can request written reasons, and their absence weakens the employer's position before the tribunal.