Posted on 12 November 2018

Although it is true that in Luxembourg the contract of employment for a permanent contract is the normal and general form of the employment relationship, a fixed-term contract may be concluded for the execution of a specific and temporary task, but only in cases listed by law.

Use of fixed-term contracts (Article L.122-1 of the Labour Code)

Fixed-term contracts can only be concluded for:

  • specific and unsustainable tasks, and
  • cannot be used in the long term for jobs linked with the normal, permanent business of the company.

    => They can therefore only be used in special cases, to meet labour needs which do not arise from the normal, permanent business activity of the company.

    => Fixed-term contracts must state their purpose object clearly. In the absence of any wording regarding the purpose of a contract of employment, it cannot be established that the contract has been concluded for a specific, non-permanent task, and it will therefore be deemed to be a permanent contract.

Since a law of December 23rd, 2013, employers wishing to recruit personnel under permanent contracts must inform staff already employed in the company under fixed-term contracts when the vacancy in question arises (Article L.122-10 of the Labour Code).

The 9 cases where fixed-term contracts are applicable:
  • Replacement of an absent employee;
  • Seasonal contract;
  • Jobs where it is the norm to use fixed-term contracts;
  • Occasional and one-off tasks;
  • Temporary increase in work;
  • Urgent work;
  • Employment of a jobseeker registered with Adem;
  • Recruitment of certain jobseekers;
  • Additional training.
The principle of equal treatment (Article L 122-10 of the Labour Code)

Principle: unless otherwise required by law, the legal provisions and agreements applicable to employees bound by permanent contracts are also applicable to employees bound by fixed-term contracts.

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