Hiring Staff in Luxembourg: Practical Tips

Published on October 3, 2025 and written by Cyril Jarnias

Luxembourg, a small country at the heart of Europe, has become a major attraction hub for international companies. With its dynamic economy and diverse labor market, the Grand Duchy offers numerous opportunities for employers seeking to recruit qualified personnel. However, navigating the intricacies of Luxembourgish recruitment can prove complex for foreign companies. This article will guide you through the essential steps of the recruitment process in Luxembourg, covering legal, practical, and strategic aspects.

The Luxembourg labor market: a pool of international talent

Luxembourg stands out for its cosmopolitan labor market. With nearly 48% of its workforce composed of cross-border workers mainly coming from France, Germany, and Belgium, the country offers a diverse and multilingual talent pool. This diversity is a major asset for companies seeking varied skills and international exposure.

The relatively low unemployment rate (approximately 5.2% in 2024) reflects a dynamic yet competitive labor market. The most promising sectors include finance, information technology, logistics, and business services. Demand is particularly strong for qualified profiles in these fields, which can make recruitment more challenging for employers.

To attract the best talent, companies must therefore stand out by offering attractive packages, including not only competitive salaries but also social benefits and professional development opportunities.

Keys to successful recruitment in the Grand Duchy

To successfully carry out your recruitment in Luxembourg, it is crucial to adopt a strategic and well-informed approach. Here are the essential steps to attract and select the best candidates:

1. Precisely define your needs

Before launching your search, take the time to clearly define the profile you’re looking for. Detail the required technical, linguistic, and behavioral skills. In Luxembourg, proficiency in multiple languages (French, German, English, Luxembourgish) is often a major asset.

2. Choose the right recruitment channels

Luxembourg has numerous channels to disseminate your job offers:

• Specialized job sites like Monster.lu or Jobs.lu
• Professional social networks, with LinkedIn at the forefront
• Local recruitment agencies
• The Employment Development Agency (ADEM), equivalent to France’s Pôle Emploi

Don’t hesitate to combine multiple channels to maximize the visibility of your offer.

3. Write an attractive job offer

Your advertisement should not only describe the position and required qualifications but also highlight the advantages of working for your company in Luxembourg. Mention career opportunities, the international work environment, and any specific benefits related to the Luxembourg market.

4. Conduct effective interviews

During interviews, evaluate not only technical skills but also the candidate’s ability to integrate into a multicultural environment. Consider including language tests if necessary. Video conference interviews are increasingly common, especially for initial contacts with international candidates.

5. Check references and qualifications

In an international labor market like Luxembourg’s, it is crucial to carefully verify candidates’ references and qualifications. Ensure that foreign degrees are recognized in Luxembourg or equivalent to local standards.

Worker rights: a protective framework to know

Luxembourg is renowned for its protective social framework, offering numerous benefits to employees. As an employer, it is crucial to understand these rights well to ensure a harmonious and legally compliant working relationship.

Employment contracts and conditions

The permanent contract (CDI) is the standard in Luxembourg. Fixed-term contracts (CDD) are permitted but strictly regulated. Any contract must be established in writing no later than the first day of work and include specific information such as job description, salary, working hours, and the duration of the probation period.

The legal working time is set at 40 hours per week, with a maximum of 10 hours per day. Overtime is strictly regulated and must be compensated either by compensatory rest or by a salary increase.

Leave and public holidays

Employees in Luxembourg benefit from a minimum of 26 days of paid leave per year, in addition to 11 legal public holidays. It is important to note that Luxembourg places great importance on work-life balance, which is reflected in these generous leave provisions.

Social protection and benefits

The Luxembourg social security system is one of the most comprehensive in Europe. It covers health insurance, pension insurance, accident insurance, and family benefits. Contributions are shared between the employer and the employee, with a larger share borne by the employer.

Many companies offer additional benefits to attract and retain talent, such as supplementary insurance, retirement savings plans, or meal vouchers.

Dismissal law

Luxembourg labor law provides strict procedures regarding dismissal. Notice is mandatory, with its duration varying according to the employee’s seniority. Dismissals must be justified by real and serious reasons, otherwise they may be considered abusive.

Key recruitment players in Luxembourg

To facilitate your recruitment process in Luxembourg, it is wise to know and collaborate with the main market players. Here is an overview of key resources available to you:

ADEM: your essential public partner

The Employment Development Agency (ADEM) is the Luxembourg equivalent of Pôle Emploi. It is an essential partner for any employer in Luxembourg. ADEM offers several free services to companies:

• Publication of job offers on its website
• Pre-selection of candidates matching your criteria
• Recruitment advice and information on hiring aids
• Organization of job dating and recruitment events

Collaborating with ADEM can not only expand your candidate pool but also help you navigate the specificities of the Luxembourg labor market.

Specialized recruitment agencies

Luxembourg has many recruitment agencies, some generalist, others specialized by sector. Among the most reputable are:

• Michael Page Luxembourg
• Hays Luxembourg
• Randstad Luxembourg
• Adecco Luxembourg

These agencies can be particularly useful for specific positions or hard-to-find profiles. They offer in-depth knowledge of the local market and access to a wide network of candidates, including passive profiles who are not actively searching.

Online platforms and social networks

Online job sites are essential for reaching a wide audience. In Luxembourg, the most popular include:

• Jobs.lu
• Monster.lu
• Indeed Luxembourg

LinkedIn also plays a crucial role in recruitment in Luxembourg, especially for qualified positions and international profiles. A well-thought-out employer branding strategy on LinkedIn can significantly improve your attractiveness to potential candidates.

Recruitment events

Luxembourg regularly organizes job fairs and networking events that are excellent opportunities to meet potential candidates and promote your employer brand. Among the most notable:

• Moovijob Tour Luxembourg
• ICT Spring (for tech profiles)
• Job fairs organized by the University of Luxembourg

Participating in these events can help you establish direct contact with qualified candidates and make yourself known in the Luxembourg labor market.

Employment contracts in Luxembourg: choosing the right format

Choosing the employment contract is a crucial step in the recruitment process in Luxembourg. It determines not only the employment conditions but also the respective obligations of the employer and employee. Here is an overview of the main types of contracts available:

Permanent Contract (CDI)

The CDI is the most common and secure form of contract for employees in Luxembourg. It has no predefined end date and offers greater employment stability. Key points to remember:

• Possible probation period, ranging from 2 weeks to 12 months depending on qualification level
• Variable dismissal notice depending on employee seniority
• Possibility to include specific clauses (non-competition, confidentiality, etc.)

The CDI is particularly appreciated for permanent and strategic positions within the company.

Fixed-Term Contract (CDD)

The CDD is used for temporary assignments or replacements. Its use is strictly regulated by Luxembourg law:

• Maximum duration of 24 months, including renewals
• Limited to two renewals maximum
• Reason for using CDD clearly defined in the contract

Attention: a CDD that continues beyond its end date without a new contract is automatically converted to a CDI.

Temporary work contract

Temporary work allows for meeting occasional workforce needs. It involves a tripartite relationship between the user company, the temporary work agency, and the worker. Important points:

• Maximum duration of 12 months for the same assignment
• The temporary agency is the legal employer and handles administrative aspects
• Increased flexibility for the user company

Part-time contract

This type of contract can be established as CDI or CDD. It must respect certain specific rules:

• Working hours less than 40 hours per week
• Distribution of working hours clearly defined in the contract
• Same proportional rights as full-time employees

The part-time contract can be an interesting option to promote work-life balance, particularly valued in Luxembourg.

Specific contracts

Luxembourg also offers contracts adapted to particular situations:

• Apprenticeship contract for work-study training
• Integration contract for young job seekers
• Student contract (limited to 2 months per year)

These contracts often benefit from aids or charge reductions for the employer.

Required documents: prepare your recruitment file

To successfully carry out your recruitment process in Luxembourg, it is essential to prepare and collect the necessary documents, both for the employer and the future employee. This administrative step is crucial to ensure the legal compliance of the hiring.

Documents to be provided by the employer

As an employer, you must prepare the following documents:

• The detailed employment contract, including job description, salary, hours, and other employment conditions
• The entry declaration to the Joint Social Security Center (CCSS)
• The company’s internal regulations, if applicable
• Information on the collective agreement, if your company applies one
• Work permit application form for non-EU/EEA nationals

It is crucial to ensure that all these documents comply with current Luxembourg legislation.

Documents to request from the candidate

The selected candidate will need to provide several documents to finalize their hiring:

• Copy of identity card or passport
• Luxembourg social security number (to be obtained from CCSS for new arrivals)
• Copies of diplomas and professional certifications
• Work certificates from previous jobs
• Criminal record extract (bulletin n°3) less than 3 months old
• Residence certificate for non-Luxembourg residents
• For non-EU/EEA nationals: valid residence and work permit

Specific documents according to business sector

Certain sectors may require additional documents:

• Financial sector: professional integrity certificate
• Regulated professions: proof of registration with relevant professional bodies
• Health sector: copies of recognized diplomas and authorization to practice in Luxembourg

Always check the specific requirements for your business sector with the competent authorities.

Document management and retention

Once collected, these documents must be carefully managed:

• Store them securely, in compliance with data protection rules (GDPR)
• Ensure their regular update, especially for work permits of non-EU nationals
• Keep track of training and certifications obtained by the employee during their career in the company

The complete procedure: from job offer to integration

Recruiting in Luxembourg requires a structured approach compliant with local regulations. Here is a step-by-step guide to successfully carry out your recruitment process, from publishing the offer to integrating the new employee.

Step 1: Preparation and publication of the offer

• Precisely define the position and required skills
• Write an attractive job offer, highlighting the advantages of working for your company in Luxembourg
• Publish the offer on various channels: company website, job platforms, ADEM, professional social networks

Don’t forget to declare your vacant position to ADEM, it’s a legal obligation in Luxembourg.

Step 2: Candidate selection

• Sort received CVs and cover letters
• Conduct initial phone screening of pre-selected candidates
• Organize in-person or video conference interviews for the best profiles
• Conduct skills or personality tests if necessary

Step 3: Decision making and job offer

• Evaluate candidates according to objective criteria
• Check professional references
• Formulate a detailed job offer to the selected candidate
• Negotiate conditions if necessary

Ensure the offer complies with Luxembourg market standards to attract the best talent.

Step 4: Administrative formalities

• Prepare the employment contract respecting Luxembourg legislation
• Gather all necessary documents (see previous section)
• For non-EU/EEA nationals, assist the candidate in their work permit application procedures
• Make the entry declaration to the Joint Social Security Center (CCSS)

Step 5: Preparation for arrival

• Prepare the workstation and necessary access (badge, IT credentials, etc.)
• Inform the team of the new collaborator’s arrival
• Designate a “buddy” to facilitate integration
• Prepare a detailed onboarding program

Step 6: Welcome and integration

• Organize a welcome day to present the company, its values, and functioning
• Schedule meetings with different departments and key collaborators
• Establish regular follow-up during the probation period
• Plan specific training if necessary

Successful integration is crucial for talent retention, particularly in a competitive labor market like Luxembourg’s.

Step 7: Follow-up and evaluation

• Set clear objectives for the probation period
• Organize regular check-ins to evaluate progress and adjust if necessary
• Collect feedback from the team and the new collaborator
• At the end of the probation period, conduct a complete review and decide on position confirmation

Recruitment in Luxembourg presents its own challenges and opportunities. By understanding the local labor market well, scrupulously respecting legislation, and implementing a solid recruitment and integration process, you will maximize your chances of attracting and retaining the best talent. Remember that in such a competitive market, your employer brand and the candidate experience you offer can make all the difference.