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How to Hire Workers in Luxembourg | Employer of Record (EOR) in Luxembourg

Expand your business into Luxembourg with confidence using our Employer of Record (EOR) services. We handle all aspects of local employment, including payroll, benefits, and compliance with Luxembourgish labor laws. Our personalized approach ensures that your business operations in Luxembourg run smoothly, giving you peace of mind as you grow your presence in this dynamic market.

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Luxembourg, known for its strong economy, high standard of living, and strategic location in Europe, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Luxembourg, offering comprehensive solutions for building your contingent workforce.

With a population of over 634,000 people, Luxembourg boasts a highly skilled and multilingual workforce. From the historic streets of Luxembourg City to the picturesque countryside of the Ardennes, the country offers a unique blend of culture and natural beauty.

When expanding your business into Luxembourg, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into Luxembourg. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.

In Luxembourg, Workers recognize 11 paid public holidays. Workers are entitled to double pay for work performed on public holidays. There may be other premiums applicable for Sunday holiday work or overtime holiday work.


Full-time Workers are entitled to 26 days of paid leave per year, which accrues at a rate of 2.167 days per month. Accrued vacation may not be used until a Worker has reached three months of service. Leave must be used in the year it is accrued unless there is a reason the Worker has not been able to use the accrued leave. In such cases, the leave may carry over to March 31 of the subsequent year.

Sick Leave

Workers are required to inform employers about an illness on the first day of absence and submit a medical certificate by the third day at the latest. Employers must pay the Workers’ full salary from the date a Worker reports an illness to the end of the month during which the 77th day of illness occurs (whether consecutive or not) over 18 months. Up to 80% of the remuneration is reimbursable by the employer’s mutual scheme insurance. From the 77th day forward, a Worker is paid for leave via the Caisse Nationale de Sante up to 78 weeks over 104 weeks. The employment agreement automatically ends after 78 weeks of sick leave over 104 weeks.

Working Hours

A regular workweek is eight hours per day and 40 hours per week.


Overtime is considered any hours worked in excess of a regular workweek. In no case should work exceed 10 hours per day or 48 hours per week. Overtime entitles Workers to paid time off or pay increases. Work on Sunday is generally prohibited.


Except in a case of gross misconduct or redundancy, employers must provide notice of a termination based on the length of service (0 – 5 years: two months’ notice, 5 – 10 years: four months’ notice). The notice period must begin on the first or fifteenth of the month. In some cases, a pre-dismissal interview is needed. Dismissals must be reported to the Social Security Centre. In addition, terminated workers with more than five years of service are entitled to severance based on the length of service.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.