Luxembourg is a small landlocked country in Europe, bordered by Belgium, Germany, and France — it has one of the highest GDPs per capita in the world. Luxembourg has a representative democracy headed by a constitutional monarch, which makes it the world's only remaining sovereign grand duchy.

The city of Luxembourg was declared a UNESCO World Heritage Site because of its exceptional preservation of historic quarters.

The minimum wage in Luxembourg is EUR 2,837 per month. The standard workweek is 40 hours at 8 hours per day. Overtime work must be mutually agreed on between the employer and employee, and is paid at 150% of the regular salary. Overtime work must not exceed 2 hours per day and 8 hours per week.

Parental Leave

Pregnant employees can receive 20 weeks of paid maternity leave beginning up to 8 weeks before the due date. This leave is paid for by social insurance at a maximum of 5x the minimum wage. Paternity leave is up to 10 days, and adoption leave can be taken as well.

Parents can also take Parental Leave once per child, before the child turns 6 years old. The length and pay of the leave depends on the number of hours a week the employee works.

Sick Leave

Employees can take sick leave for up to 26 weeks, paid at 100% of the salary by the employer for the first 77 days. After that, employees can draw benefits from social security.

Paid Leave

There are 11 public holidays, and employees are entitled to a minimum of 26 days of paid time off each year. Luxembourg also offers cultural leave, which is granted under certain conditions and for a duration dependent on the category, and varies from 2 to 12 days per year. Employees can also qualify for special leave for bereavement, marriage, and other reasons.

Process

The process for termination will vary based on the employment contract and reason for termination.

For companies with 150+ employees need to conduct a hearing before an employee is dismissed. For companies with at least 15 employees, the employer has to notify the Economic committee of the termination.

Notice Period

In most cases, the amount of notice is dependent on how long the employee has worked at the company, and payment can be made in lieu of notice.

• 0-5 years = 2 months of notice
• 5-10 years = 4 months of notice
• 10+ years = 6 months of notice

Severance Pay

In most cases, the amount of severance is dependent on how long the employee has worked at the company:

• 0-5 years = no severance pay
• 5-10 years = 4 months of severance pay
• 10-15 years = 2 months of severance pay
• 15-20 years = 3 months of severance pay
• 20-25 years = 6 months of severance pay
• 25-30 years = 9 months of severance pay
• 30+ years = 12 months of severance pay

It’s customary to pay a 13th month salary in Luxembourg, equivalent to 1 month of salary paid at the end of the year.