Luxembourg Employment Guide

Luxembourg is in Western Europe, bordering Belgium, France and Germany, and serves as a key European financial center and political hub. It has ~650,000 people; its economy focuses on financial services, IT, logistics, steel and high-value-added manufacturing, with Luxembourg City (the capital) as the political, economic and cultural center. Luxembourg’s labor laws require written labor contracts, set a 40-hour standard workweek, and mandate employers to provide minimum wages, social insurance and paid leave. Dismissals must follow legal procedures and offer employees corresponding compensation. Its labor relations system is sound, with a stable overall employment environment and friendliness to foreign-funded enterprises.

Check recruitment costs

Currency

Euro (EUR)

Capital

Luxembourg City

Official language

Luxembourgish, French, and German

Salary Cycle

Monthly

Our Employment Guide in Luxembourg

Browse the following tags to learn all about hiring employees in Luxembourg

Optimizing the Employee Onboarding Process in Luxembourg

Navigating the onboarding timeline for new hires in Luxembourg requires careful planning. Due to mandatory compliance procedures, the process typically spans two to four weeks. It is essential that all documentation is finalized and submitted at least one day before the employee's official start date.

Key Steps for ADEM Registration

In Luxembourg, employers must register new employees with ADEM (Agence pour le développement de l'emploi), the national employment agency. During onboarding, SailGlobal provides a specific form that facilitates this notification to ADEM. Only after receiving confirmation from ADEM can the employment contract be formally issued to the new team member.

Best Practices for a Smooth Onboarding Experience

To ensure efficiency, companies like SailGlobal recommend initiating the ADEM registration as early as possible. A common challenge is delayed processing, which can impact project timelines. For instance, a technology firm recently streamlined its onboarding by pre-submitting documents, reducing the average processing time by 30%.

Hire easily in Luxembourg

Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now

Cost Calculator

Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.