FIXED-TERM CONTRACT IN LUXEMBOURG (FTC)

The terms of a fixed term contract in Luxembourg

Fixed-term contracts (FTC) can be drawn up only for jobs that are not long term.

The employer can draw up FTC in the following cases:

• Replacement contracts for maternity/paternity leave or for long-term illness;
• Seasonal employment;
• Situations requiring short-term employment (in the entertainment industry, for example);
• Urgent, sporadic or odd jobs;
• Employment of long-term unemployed persons;
• Etc.

FTC cannot be used for ongoing and indispensable tasks for the company.

Fixed-term contracts must be must be in writing and must be signed by both the employer and employee.

Information required in FTC

In addition to mandatory information included in article L.121-4 of Luxembourg labor code explaining what must be included on any work contract such as work place, title of the post, work hours and salary, an FTC must also include the end date of the work contract or the minimum duration along with the duration of the trial period for the FTC.

In the case of a replacement worker for an employee on long-term leave, the name of the employee must be stipulated in the fixed-term contract.

All the above information must be mentioned in a fixed-term contract (FTC), the absence of which means that the contract is considered an open-ended contract.

Duration and renewal of FTC

An FTC cannot exceed 24 months for an employee, including contract renewals. The maximum duration of 24 months does not apply to certain categories of work contracts such as seasonal work or training/research contracts.

An FTC can be renewed a maximum of two times within the limit of 24 months total duration. The renewal can be stipulated in the work contract or can be added as an amendment to the first contract. Contracts for teachers and researchers and contracts for entertainment industry workers are exceptions to this rule and can be renewed more than two times, even if the total duration exceeds 24 months.

The FTC concludes at its expiration date stipulated in the work contract.

In case of missing accurate term, the fixed-term contract is could be redacted without an end term date in some precise cases:

• When the fixed-term contract is signed to replace a missing employee (the fixed-term contract ends when the employee is back)
• When the fixed-term contract is signed for seasonal works (the fixed-term contract ends when the harvest finishes for example)
• When the fixed-term contract is signed for an accurate task (the fixed-term contract will end when this accurate task is over)

If the worker employed under a FTC continues to work for the employer after the FTC has ended, the contract automatically transforms into an open-ended contract. The employee is not subject to a trial period for a FTC or open-ended contract in Luxembourg.

Trial period of a fixed-term contract

For all fixed-term contracts, the trial period closed between one employer and one employee cannot last less than two weeks and cannot exceed one quarter of the whole duration.
When it is not specified, the trial period is calculated on contract’s minimal duration.
If the trial period overtakes maximal limits provided by the Labour Code, the trial term is not fully void but only for the duration which exceeds the statutory time limit.
E.g. For an 8 months fixed-term contract, the trial period term closed cannot exceed two months (8 months ÷ 4 = 2).