CDD Contract in Luxembourg

Definition of a CDD contract and temporary employment

A fixed-term or temporary contract of employment (Contrat à Durée Déterminée in French, CDD) is an agreement of employment for a specific period of time and for temporary tasks. Most of the rules that apply for a CDI (permanent employment contract) usually apply for a CDD as well, as the structure, content and trial period are most of the times the same.

Involved parties

-Anyone who desires to be part of an employment relationship as an employee.

-Anyone who needs to hire employees for a limited period of time for specific and temporary work.

Business sectors CDD contracts are used

The main sectors CDD contracts are used are:

Audiovisual sector: radio, tv, photography
Banking sector: mainly for private banking activities and investment advisors
Education
Sports
Construction
Arts: performing artists, models
Hospitality business: hotels, catering, F&B
Agriculture

Necessary requirements and specific conditions of a CDD contract

A specific purpose needs to be mentioned, and even though a permanent contract doesn’t need an end date, that must be included in a CDD contract.

If it is a replacement or renewal contract it needs to be mentioned as well.

The main reasons of a CDD contract might be:

To cover for a permanent employee on leave
Temporary replacement of permanent employee, until finding permanent replacement
Seasonal employment
Project-based work

Duration

The maximum duration of a CDD contract is 24 months. In case of seasonal employment though, this duration drops down to 10 months, including renewals, over a 12 month period of time.

Trial period

A trial period is not mandatory when there is an employment contract, but it is the usual practice. In order for it to be valid, it must be mentioned in the contract. During that time any of the two parties, employer or employee, can terminate their agreement without a cause. The minimum duration of the trial period can vary but it is usually 2 weeks (during which the contract cannot be terminated) to 3 months and can last up to 12 months. In the case of the CDD contract though, there is a special condition: the trial period cannot exceed ¼ of the whole contract’s duration.

Renewal

A temporary appointment contract can be renewed twice that total period, so it cannot exceed the 2 years, with only a few legal exceptions to this rule such as University researchers, people working in entertainment and secondary school teachers.

Termination

Since the contract has a definite end date, there is no need for notice unless it is before that date. It can also continue after expiry, providing that it is transformed into a permanent contract of employment if exceeding the 24 months. A fixed-term contract can also be terminated during notice period and also due to serious misconduct of any party. If the contract is terminated before its fixed expiry date, costs might be included for the party terminating the contract.

There are also some rare but still valid reasons for automatic termination, such as long-term sickness, change in the disability status of the employee, invalidity pension and of course the case of death, of either the employer or the employee.

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Who to contact for more information regarding CDD contracts in Luxembourg?

You could contact the Chamber of Employees or the Inspectorate of Labour and Mines (ITM). For more info:

Chamber of Employees

Address: 18, rue Auguste Lumière L-1950 Luxembourg Luxembourg

B.P. 1263 L-1012 Luxembourg

Phone: (+352) 27 494 200

Fax: (+352) 27 494 250

Email address: csl@csl.lu

Opening hours: Mon.-Fri. from 8.30 to 12.00 and from 13.00 to 17.00

Inspectorate of Labor and Mines (ITM)

Address: 3, rue des Primeurs L-2361 Strassen Luxembourg

B.P. 27, L-2010 Luxembourg

Phone: (+352) 247 76 100

Fax: (+352) 247 96 100

Email address: contact@itm.etat.lu

Opening hours: Monday to Friday from 8.30 to 12.00 and from 13.30 to 16.30

FAQ

What are some potential temporary tasks and professions covered by a CDD contract?

Holiday related tasks such as tour guides and baywatch positions, also hotel & retail positions only for a specific time of year, harvesting and packaging harvested products, temporary work for business expansion for example a startup, tv and radio related positions such as producers, presenters and floor managers, substitute teachers, performing artists and other various urgent jobs.

Is seasonal employment covered by a CDD contract?

Yes - one of the reasons employers are using CDD contracts is for seasonal employment, the only difference is that seasonal employment must be even more limited in duration, up to 10 months maximum during 12 months, including renewals, while another type of CDD contract, can be up to 24 months including renewals.

What are some potential employer misconducts that can lead to immediate termination?

Employee not registered for social security, missed payments or repeatedly delaying payment, behavioral issues such as emotional or physical violence, sexual harassment and denying leave repeatedly and without cause. In those cases, the employee must write a letter of termination with immediate effect. It has to be in physical form, either as registered mail or hand delivered, getting a signed copy of the employer. The reasons are not necessary to be mentioned unless the employee plans on taking the case to court.