Union density in Luxembourg is around a third of the workforce. There are two main union confederations, OGB-L and LCCB, with affiliates across the bulk of the economy. The two have ideological differences, although they co-operate both at national and European level. There are also other important union groupings in finance, railways and the public service.
There are around 160,000 trade unionists in Luxembourg, according to the unions’ own figures, of whom perhaps 20% are retired. With 422,000 employees working in Luxembourg in 2018, including 192,000 who cross the frontier from Luxembourg’s neighbours every day, this suggests a union density figure of around 30%. The ICTWSS database estimates union density at 31.8% in 2018.[1] This is lower than the 41% union density figure published by statec, the national statistics office, in 2011.[2] However, this figure related only to those living in Luxembourg, not to those commuting from other countries, and since then it is likely that any increase in union membership has lagged behind the increase in the number of employees (see below).
There are two main trade union confederations, the OGB-L with more than 70,000 members and the LCGB with 40,850.[3] The OGB-L has been strengthened by a planned merger with the FNCTTFEL, which organises railway and transport workers, including civil servants, and has between 6,000 and 7,000 members, including pensioners. The merger was agreed in principle at the FNCTTFEL congress in December 2019 and will be implemented gradually over the period 2020 to 2022.[4]
The FNCTTFEL has cooperated with OGB-L for many years – the two bodies signed a cooperation agreement in 2011 – and there is similar cooperation between LCGB and the small railway and transport workers’ union SPYROLUX.
The third important union grouping in the private sector is ALEBA, which operates in banking and insurance companies, where it has 10,000 members and is the largest union (figure from ALEBA website[5]). There is also another cross-industry private sector union grouping NGL-SNEP, although its support is much more limited than that for the OGB-L and the LCGB, as shown in the elections to the chamber of employees (see below).
There are also two important public sector unions, the CGFP (civil servants), which has more than 30,000 members[6], and the FGFC (local government employees), with 4,200.[7]
In 2004, Luxembourg reformed the rules on collective bargaining (see section on collective bargaining) and the representative status of unions.
The legislation only covers the private sector, and it distinguishes between unions that have national representative status and those that are representative in an important sector of the economy. Nationally representative unions must be active in a majority of the country’s economic sectors and have at least 20% support in the elections for the body representing employees – the Chamber of Employees Luxembourg (CSL). Unions that are representative in an important sector of the economy (defined as one in which at least 10% of the private sector employees work) must have the support of 50% in the elections for the section of the CSL covering that sector. In addition to be representative at both levels, unions must be able to sustain a major industrial dispute, either at national level – for nationally representative union, or in that industry – for representative unions at industry level.[8]
Elections to the Chamber of Employees (CSL), which replaced separate chambers for manual and non-manual employees in 2008, take place every five years. Following the elections in March 2019 four unions are represented in the CSL.[9] The OGB-L has an overall majority, with 35 of the 60 seats and LCGB is in second place with 18. Together these two confederations hold all the seats in the seven of the CSL’s nine sections – eight sections based on industries and one for retired workers. Of the two remaining sections, the eight seats in financial services are split between ALEBA (four), OGB-L (three) and LCGB (one), while in the section for the railways (employees and pensioners), FNCTTFEL has two seats and SPYROLUX has one.
The CSL, which has an important role in influence economic and social policy in Luxembourg, only covers the private sector. There is a separate 27-member chamber for civil servants and public employees (CHFEP), which is elected every five years. In the 2015 election the CGFP won 21 seats, the FGFC won five and APESS (a teachers’ union) and FNCTTFEL won one each. (Some railway workers are civil servants.)[10]
Another indication of the level of union support is provided by the election of employee representatives in the private sector, which took place on the same date in March 2019 (see section on workplace representation). A total of 8,290 delegates were elected: 1,999 (24.1%) nominated by OGB-L, 1,178 (14.2%) by LCGB, and 334 by ALEBA (4.0%). All the other unions gained fewer than 25 delegates each, and the 4,710 elected delegates not nominated by any union made up a majority (56.8%) of the total.[11]
Both the OGB-L and the LCGB are divided into federations on an industrial basis. The OGB-L has 15; the LCGB has 14. The CGFP has 10 major lower-level organisations, such as the teachers’ union in the public sector, as well as groups of individual members.
The two main confederations are formally politically independent, but they have different political roots. The OGB-L comes from the socialist tradition, while the LCGB’s links are with the Christian Social Party. Despite this, their relationships are reasonably harmonious, and the two confederations have a joint European secretariat, the SECEC, to represent the interest of workers in Luxembourg in Brussels.[12]
ALEBA emphasises its party-political independence.
Luxembourg’s unions report that their membership has increased since the start of century. The OGB-L for example reports it has more than 70,000 members, compared with only 46,000 in 1999, while the LCGB reports that its membership has increased from 28,000 to more than 40,000. Despite this, growing employment means that union density has declined. Between 1999 and 2019, the total number of employees almost doubled from 232,000 to 437,000 an 88% increase, with the majority of the increase made up of cross-border workers, whose number increased by 157% over the same period.[13] Although unions attempt to provide support to these cross-border workers, with union offices in towns in France, Belgium and Germany, they seem more difficult to unionise.
Women seem less like to be union members than men. The 2011 statec report on union density found that 44% of male employees were in a union compared with 38% of women.[14]
[1] Jelle Visser, ICTWSS Data base. Version 6.1. Amsterdam: Amsterdam Institute for Advanced Labour Studies AIAS. October 2019
[2] Regards sur la syndicalisation au Luxembourg, by Jean Ries, Statec, 12-2011 http://www.statistiques.public.lu/catalogue-publications/regards/2011/PDF-12-2011.pdf
[3] Figure from OGB-L from union website http://www.ogbl.lu/nous-connaitre/introduction/syndicat-numero-1-au-luxembourg/ figure for LCGB from Working life in Luxembourg by Franz Clément, Kristell Leduc, Patrick Thill and Roland Maas, Eurofound, 2019 https://www.eurofound.europa.eu/country/luxembourg#actors-and-institutions (Accessed 14.04.2020)
[4] Luxembourg: Latest developments in working life Q4 2019 by Patrick Thill and Roland Maas, Eurofound, 2019 https://www.eurofound.europa.eu/publications/article/2020/luxembourg-latest-developments-in-working-life-q4-2019 (Accessed 14.04.2020)
[5] https://www.aleba.lu/presentation/ (Accessed 14.04.2020)
[6] CGFP Syndicat Rapport d’activités 2018, https://www.cgfp.lu/medias/documents-archives (Accessed 14.04.2020)
[7] Working life in Luxembourg by Franz Clément, Kristell Leduc, Patrick Thill and Roland Maas, Eurofound, 2019 https://www.eurofound.europa.eu/country/luxembourg#actors-and-institutions (Accessed 14.04.2020)
[8] Loi du 30 juin concernant les conventions collectives de travail
[9] Assemblée plénière - présentation https://www.csl.lu/fr/chambre-des-salaries/structure/assemblee-pleniere-presentation (Accessed 14.04.2020)
[10] Présentation CHFEP https://www.chfep.lu/present.php (Accessed 14.04.2020)
[11] ITM Total national (22.04.20) https://itm.public.lu/fr/conditions-travail/elections-sociales/resultats/total-national.html (Accessed 22.04.2020)
[12] Le SECEC http://www.secec.lu/organisation/le-secec (Accessed 14.04.2020)
[13] Statec : B3002 Emploi salarié intérieur par lieu de résidence et nationalité 1995 - 2019
[14] Regards sur la syndicalisation au Luxembourg, by Jean Ries, Statec, 12-2011 http://www.statistiques.public.lu/catalogue-publications/regards/2011/PDF-12-2011.pdf (Accessed 14.04.2020)
The key levels of bargaining are at industry and company level, and the relative balance between the two varies from industry to industry. There are precise rules on what must be included in agreements and who can sign them. Luxembourg is also one of two EU states where pay goes up automatically in line with inflation.
The most important levels for negotiations in Luxembourg are at industry and company level. Industry level agreements initially apply only to those companies, which belong to the employers’ associations which have signed the agreement but are often extended by the government to the entire sector (see below). Company level agreements apply only to the company concerned.
Since the legislation on collective agreements in 2004 (Loi du 30 juin concernant les conventions collectives de travail), it has also been possible for representative unions and employers at national level to reach agreements in the area of social dialogue. This primarily allows the national implementation of European measures – either directives or agreements between unions and employers at European level, but is also possible to reach agreements in other areas such as working reductions, training, atypical working, non-discrimination, bullying and harassment (including sexual harassment) and stress.
In practice, there are many more company-level than industry-level agreements. In 2018, 104 company agreements and amendments to company agreements were registered with the Inspectorate of Labour and Mines, in 2018, compared with only 15 agreements and amendments at industry level.[1] The position is similar in earlier years: 2017 – 63 company and seven industry agreements; 2016 – 81 company and 12 industry; and 2015 – 114 company and eight industry.
However, the relative importance of the two levels of agreement varies from industry to industry, and there is generally no link between industry-level and company-level settlements.[2] In banking and insurance for example, there is a single industry agreement for the banks and another for insurance. Other industry-level agreements cover construction and civil engineering, bus drivers, hospital establishments, heating and ventilation installers, temporary agency workers and the social sector. However, in the retail sector, each of the main groups, such as Auchan, Cactus, H&M, Match and Villeroy & Boch, has its own company agreement and, as in many other industries, there is no industry agreement.
Where they exist, industry-level agreements can be extended to cover all the employers and employees in the industry concerned, provided certain conditions are met. The initial request can come from either the unions or the employers. It is examined in a joint committee of the National Conciliation Service (ONC) and, if the proposal is supported, it then goes to the president of the ONC and to the minister of labour who takes the final decision. In practice, this happens frequently, and most industry-level agreements are extended, as both employers and unions are keen to avoid being undercut by competitors paying lower wages. On 29 January 2020, there were 26 industries or occupational groups covered by agreements that been made generally binding – from banks to river transport.[3]
Overall, a 2013 study by the national statistics office statec indicated that 59% of all employees in Luxembourg were covered by collective agreements in 2010, although there were substantial differences between industries. Coverage was 100% in public administration, although, in precise legal terms, the pay and conditions of civil servants and others working in public administration are not governed by collective agreements. Coverage was almost as high, at 87%, in both education and in health and social services. Looking at the private sector, coverage was lower at 55% overall. It was 70% in construction, where there are a number of industry agreements, but only 38% in retail and wholesale, where there are no industry agreements. The lowest level of coverage, at 12%, was in hotels and catering.[4] There have been no subsequent studies on the level of coverage since the 2013 statec analysis.
Following the abolition of the legal distinction between manual and non-manual employees in 2008, employers can now only sign agreements for all their employees.
The system is designed to encourage consensus and agreement. Employers are obliged to begin negotiations if asked, either individually or through their employers’ associations. If they refuse to do so or if the negotiations break down without agreement, the issue is referred to the national conciliation machinery, which in some cases involves arbitration. This means that before industrial action can be taken both sides must first have tried to negotiate a settlement and, if that has failed, to have sought external conciliation.
There is also a highly developed social dialogue structure, with several separate advisory bodies. The CES, made up of 18 union and 18 employer representatives, together with three members nominated by the government, has a role in organising support for social dialogue at national level, as well as providing advice to the government when asked. The tripartite coordination committee (CCT), with four members each from the employers, unions and government, has a role in building consensus between employers and unions, as well as a specific role in decisions on uprating pay in line with inflation (see below).
Who negotiates and when?
The 2004 legislation formalised the situation to ensure that only representative unions can negotiate and sign collective agreements (see section on unions for definition of representativeness). It provides for a negotiating committee on the union side, made up of unions who are nationally representative, plus unions who are representative in that particular industry. These unions must be part of the negotiating committee, as must any other union which has got the support in elections for employee representatives of at least 50% of the employees covered by the collective agreement under negotiation. Unions who do not meet these conditions can be admitted into the negotiating committee, but only if the unions already present unanimously agree to do so.
Ideally all the unions involved should sign the agreement. However, if this is not possible, the agreement can be signed by one or more of the unions, provided that they also invite the other unions to sign. If the other unions are unwilling to sign, the unions wanting to do so can go ahead, provided that individually or together they have the support of at least 50% of the employees covered by the agreement, as shown in the most recent election for employee representatives.
On the employers’ side agreements, which must be in writing and must be registered with the labour ministry, can be reached by individual employers and employers’ associations.
Collective agreements can last between six months and three years. Typically, they are for two to three years.
The subject of negotiations
The agreements cover the whole range of industrial relations issues, including both pay and working conditions. The 2004 legislation sets out a range of issues which must be included in the agreement and, as well as pay, working time and holidays, agreements must cover the level of premia for night work, additional payments for particularly difficult or unpleasant work, the mechanisms for ensuring equal pay and the way that sexual harassment and bullying will be tackled.
Pay in Luxembourg, as in neighbouring Belgium, is indexed, rising in line with prices. When prices rise (or fall) by 2.5% over the previous six months, pay is increased (or decreased) by the same amount. Employers are obliged to do this automatically, and the price index is published monthly by the national statistical office statec.
As well as the topics, which are dealt with at industry or company level, the legislation allows for social dialogue agreements at national level, as noted above. This possibility has been used to implement two agreements reached at European level in Luxembourg. These cover teleworking (2006) and violence and harassment at work (2009).
Luxembourg also has a national minimum wage, which as well as setting a basic minimum rate, also provides a 20% higher rate for more highly skilled workers. The minimum wage is linked to the price index in the same way as other agreements and the level of the national minimum wage must also be reviewed at least every two years.
[1] L’inspection du travail et des mines: rapport annuel 2018,2017.2016, 2015 https://itm.public.lu/fr/publications.html (Accessed 14.04.2020)
[2] Luxembourg: an instance of eroding stability? By Adrien Thomas, Vassil Kirov and Patrick Thill, in Collective bargaining in Europe: towards an endgame, edited by Torsten Müller, Kurt Vandaele and Jeremy Waddington, ETUI, 2019
[3] Liste des conventions collectives, L’inspection du travail et des mines, 29 January 2020 https://itm.public.lu/fr/conditions-travail/convention-collectives/liste.html (Accessed 14.04.2020)
[4] Regards 06 sur la couverture des conventions collectives de Travail, by Jean Ries, April 2013, Statec http://www.statistiques.public.lu/catalogue-publications/regards/2013/PDF-06-2013.pdf
There is now only one body, the employee delegation, which represents employees at the workplace. Unions have important rights in this structure and many employee representatives are union members.
Except in the smallest workplaces, those with fewer than 15 employees, workers in Luxembourg have a legal right to representation at work. This is provided through the employee delegation (délégation du personnel), which is directly elected by all employees.
An additional works council type body, the joint company committee, which was previously required in companies with more than 150 employees, was abolished in legislation passed in 2015, with its tasks and rights going to the employee delegation.[1] This new arrangement came into effect with the elections for employee delegations in 2019.
Unlike some other European countries, including neighbouring Belgium, there is no legally backed trade union presence at the workplace, but trade union influence in the system is effectively safeguarded by the fact that trade unions have a range of rights in the election and operation of the employee delegations. In addition, many members of the employee delegations are union members.
Figures from Eurofound’s 2013 European Company Survey indicate that employee representation at workplace level is relatively extensive. In 2013, 57% of establishments in Luxembourg with at least 10 employees had some form of official employee representation, including both the employee delegation and the now abolished joint company committee. This is above the EU28 average of 32%.[2] The proportion is higher in larger workplaces (250 employees and above), where 87% had employee representation. Even in workplaces with between 10 and 49 employees, half (50%) had an employee delegation, despite the fact that the obligation to have one only begins in companies with 15 employees.
Numbers and structure
Every company employing 15 or more workers (excluding apprentices) over the previous 12 months is obliged to set up an employee delegation. In calculating the number of workers, all part-time workers on working 16 hours a week, or more, are counted as if they were full-time, and part-time workers on fewer than 16 hours are counted on a pro-rata basis. Workers on temporary contracts and temporary agency workers are also counted on a proportional basis, relative to the number of months worked in the preceding 12 months, unless they are directly replacing an absent member of the workforce, in which case the are excluded.
The size of the employee delegation, which consists entirely of workers, varies with number of employees, as set out in the table.
Number of employees |
Number of members |
15 to 25 |
1 |
26 to 50 |
2 |
51 to 75 |
3 |
76 to 100 |
4 |
101 to 200 |
5 |
201 to 300 |
6 |
301 to 400 |
7 |
401 to 500 |
8 |
501 to 600 |
9 |
601 to 700 |
10 |
701 to 800 |
11 |
801 to 900 |
12 |
901 to 1,000 |
13 |
1,001 to 1,100 |
14 |
Thereafter there is one extra member for every 400 employees until 5,500; then one extra for every complete block of 500 employees. There is no upper limit. These means a company with between 3,101 and 3,500 employees has 20 members.
There is also representation for young workers (aged under 21), provided there are at least five young workers employed. These representatives attend meetings of the employee delegation when issues relevant to young workers are discussed.
A company with at least three divisions can, at the request of the employee delegation, set up separate employee delegations in these divisions, provided each division consists of at least 100 employees.
It is also possible for employees in businesses which employ fewer than 15 workers to set up an employee delegation with other businesses, if they form a single economic and social entity, in other words an interdependent operation. This can either be done by linking with existing employee delegations or with other businesses without an employee delegation, although, in this second case, there must be at least three businesses involved, and together they must have at least 15 employees (see section on representation at group level).
At the first meeting of the employee delegation after it has been elected, it elects from its members a chair, vice-chair and secretary, as well as a member for health and safety and a member for equality. There is also a committee (bureau) to deal with daily business and prepare the delegation meetings. This consists of the chair, vice-chair and secretary, with extra members of the committee in larger companies, totalling around half the members of the delegation.
The employee delegation must meet at least six times a year and can meet once a month in works time. It must meet the employer three times a year.
Participants in the meetings are:
- the elected members of the employee delegation (in small companies where there is only a single member, the elected replacement also has a right to attend);
- the head of the company or his or her representative, provided they are invited by the employee delegation;
- in companies with more than 50 employees, advisers nominated by the unions, who do not have to be employees, although they must be invited by a majority of the employee delegation and the number of such advisers cannot exceed a third of the size of the employee delegation; and
- an expert if the employee delegation considers the issue is crucial.
In companies with between 51 and 150 employees, the trade union advisers are nominated by unions whose candidates make up at least a third of the elected members of the employee delegation. In companies with 151 or more employees, unions whose candidates make up 20% of the elected members can make the nominations, although the employee delegation decides whether or not to invite them.
Tasks and rights
Following the legislation adopted in 2015, the role of the employee delegation has been extended from its original purpose: to “safeguard and defend the interests” of the employees. In companies with more than 150 employees, it also participates in certain decisions taken by the employer – a role previously taken by the joint company committee – now abolished,
It is the responsibility of the employee delegation to:
- avoid and resolve individual or collective disputes between the employer and employees;
- pass on to the employer any complaints that may arise – both individual and collective;
- to refer disputes that cannot be resolved to the labour inspectorate (ITM) as well as concerns that laws, regulations and collective agreements are not being properly observed.
In exercising its functions, the employee delegation must ensure the employer complies with the need for equal treatment in terms of access to employment, occupational training, pay and working conditions.
The head of the business must give the employee delegation the information it needs to perform its duties and which is likely to improve the delegation’s understanding of the progress and operation of the business (including recent and likely changes in its activities, and financial position).
For companies with between 15 and 150 employees, this information must be provided at the three meetings the delegation is required to hold every year with management. For companies with more than 150 employees, the information must be provided monthly, or in line with the wishes of the employee delegation. The employee delegation can ask for more information if it considers that the information provided is insufficient.
The head of the business must also provide the employee delegation and the member of the delegation with specific responsibility for health and safety with information on the health and safety risks, the measures taken to protect against them and the absence rates of the workforce.
In companies with fewer than 150 employees, management is required to provide the employee delegation with a written report on the company’s operations and future prospects each year, setting out: turnover, production volumes, orders, the amount of pay, as well as changes in the pay structure and investments undertaken
The role of the staff delegation is to:
- make proposals for improving working conditions and employee welfare;
- present its views on the drawing up or modification of the company’s internal regulations;
- make its own proposals on modifying the internal regulations, to which the employer must respond with a decision within two months;
- participate in the training of apprentices (where the company has more than 100 employees);
- cooperate in establishment and implementation of initial and continuing training schemes, especially apprenticeships;
- promote the integration of accident victims and people with disabilities and the creation of suitable jobs for them;
- participate in health and safety activities and the prevention of accidents at work and occupational diseases;
- participate in in the implementation of anti-harassment policies and the prevention of workplace violence;
- present its views on starting or ending additional pension schemes;
- present its views on working time issues;
- present its views on plans for ongoing occupational training;
- participate in initiatives to support young people;
- cooperate in internal regrading; and
- promote balance between work and family life.
The head of the business must inform and consult the employee delegation and the member of the delegation with special responsibility for equality on the structure and likely development of employment in the company, as well as on any measures being planned, particularly where they could threaten employment. They must also be given statistics on the gender breakdown of the workforce, covering recruitment, training, pay and promotion as well as total numbers employed every six months.
The head of the business must also inform and consult the employee delegation on “decisions likely to lead to substantial changes in work organisation or in contractual relations”, as well as specifically on collective redundancies and company transfers. The employee delegation and the member of the delegation with special responsibility for equality must also be informed and consulted on the use of special contracts for young people at the start of the careers.
Finally, the head of the business must inform and consult the employee delegation on the management of facilities run for the benefit of employees or their families including company housing, presenting an annual report on their management.
There are more extensive information and consultation obligations on the employer in companies employing at least 150 workers. In these companies, the head of the business must inform and consult the employee delegation before taking important decisions on:
- the construction, alteration or extension of facilities used in production or administration;
- the introduction, improvement, renewal or alteration of equipment;
- the introduction, improvement, renewal or alteration of working methods and production processes, other than manufacturing secrets.
The head of the business must specifically inform the delegation about the impact of such measures on the working conditions and environment. More generally he or she must inform and consult the employee delegation on current and projected staffing needs, particularly relating to training and retraining measures, at least once a year.
In addition, the head of the business must inform and consult the employee delegation, on economic and financial decisions that may have an impact on the structure of the business or the level of employment. Examples are decisions concerning
- the volume of sales and production and changes in products;
- investment policy;
- plans to discontinue or transfer all or part of the business;
- projects concerning the reduction or extension of business activities; and
- alternations to additional pension schemes.
Information and consultation on these issues must take particular account of their impact on the nature and level of employment and working conditions, as well as social measures, particularly training proposed by the company.
As far as possible, the process of informing and consulting the employee delegation should take place before any decision is made, other than where, to do so, might damage the management of the business or compromise planned activities. In such cases, the business manager must give the employee delegation the necessary information within three days of the decision.
The head of the business must inform the employee delegation in writing, at least twice per year, about the business's economic and financial development. This takes the form of a comprehensive report on the business activity, annual turnover, overall production results and operating income, orders, changes in salary structures and the total wage bills and investments undertaken.
Management must provide the employee delegation with documents such, as the profit and loss account, and the balance sheet, before they are presented to the shareholders or other decision-making bodies. In addition, where consultation with the employee delegation over issues likely to have a significant impact on the workforce has not led to agreement, the board of the company, or equivalent body in non-company structures, must be informed.
As well as issues that are subject to information and consultation, there are some issues which must be decided jointly by the employer and the employee delegation, although this requirement only applies in businesses with at least 150 employees.
The issues that must be dealt with in this way are:
- the introduction or application of technical systems to monitor employee conduct and performance in the workplace;
- the introduction or modification of measures relating to employee health and safety, and prevention of occupational diseases;
- the establishment or modification of general criteria for recruitment, promotion, transfer and dismissal of staff, and, where relevant, access to early retirement schemes;
- the implementation of all continuing training schemes;
- the introduction or modification of general criteria for employee assessment;
- the introduction or modification of the company’s internal regulations, taking account of collective agreements, where appropriate; and
- payments linked to staff suggestion schemes
A meeting must be held at least once every three months between the employer and the employee delegation to discuss these topics and reach an agreement. The agenda must be agreed jointly by the two sides and if no agreement can be reached the issue is referred to the committee (bureau) of the employee delegation, which can be helped in its work by up to four advisers nominated by the unions. If an agreement is still not possible, the issue is referred to a national system of conciliation and arbitration.
As well as these rights relating to the whole employee delegation, the members who have specific responsibilities for health and safety and equality have additional rights in these areas. For the member for health and safety this includes undertaking inspections and being information on a range of health and safety issues. The member for equality has the right to make proposals on a range of issues linked to equality, including presenting a plan to promote equality at the workplace.
Members of the employee delegation who have been nominated by the unions, can undertake trade union tasks, such as putting up notices or distributing material.
Election and term of office
Members of the employee delegation are elected five years by all employees at the workplace, including apprentices, who are aged at least 16 and have at least six months’ service. Candidates must be at least 18 and must have at least 12 months’ service. They must also be either citizens of Luxembourg or have the right to work in Luxembourg. Close relatives of the head of the business cannot be candidates, nor can directors.
Candidates can be nominated by:
- nationally representative trade unions (see section on unions);
- unions which are representative at an industry level but only in the industry in which they are representative (see section on unions);
- unions which had an absolute majority of members in the previous employee delegation; and
- groups of employees:
- at least 5% of the workforce up to a ceiling of 100 employees in companies employing at least 100; and
- at least five employees in companies employing between 15 and 99 workers.
In companies with between 15 and 99 workers, members of the employee delegation are elected individually and the candidates with the most votes are elected. In companies with 100 or more employees, candidates stand as members of lists and seats are distributed proportionately between the lists
A substantial number of the members of the employee delegations are nominated by the unions, but they are no longer the majority. In the most recent elections in March 2019, candidates nominated by the two nationally representative union confederations together won under 40% of the seats (OGB-L – 24.1% and LCGB –14.2%), while candidates from ALEBA, the union representative at industry level (finance), got 4.0%. All the other unions together got 0.8% of the seats, which means individuals proposed by groups of employees made up a majority (56.8%) of the members of the employee delegations across the country.[3]
The term of office is five years (the elections coincide with those for the Chamber of Employees – CSL), and there is no limit on the number of terms individuals can serve.
Protection against dismissal
The employer cannot alter major aspects of the contract of members of the employee delegation or dismiss them, even on the basis of “grave misconduct”, during their time in office and for a period of six months after leaving office.
However, if grave misconduct is alleged, the employer can take the issue to the labour court and request their dismissal.
Time off and other resources
Members of the employee delegation have a right to carry out their duties in works time and be paid as normally during this period. Meetings of the employee delegation are also considered working time. In addition, they have a specific right to paid time off.
In companies with up to 150 employees this is calculated based on 40 hours of time off per week for every 500 employees. On this basis, the employee delegation in a company with 100 employees has a right to eight hours of paid time off (one fifth of 40).
In companies with between 150 and 249 employees, the calculation is based on 40 hours of time off per week for every 250 employees. This means, in a company with 200 employees, the employee delegation has the right to 32 hours a week time off (four-fifths of 40).
In companies with at least 250 employees, one or more members of the employee delegation are completely freed from normal duties (see table)
Number of employees |
Number of members of employee delegation freed from normal duties |
250 to 500 |
1 |
501 to 1,000 |
2 |
1,001 to 2,000 |
3 |
2,001 to 3,500 |
4 |
Above 3,500 |
One extra member for every 1,500 employees |
The employee delegation as a whole chooses the members who will be freed from normal duties, but, in companies employing more than 1,000, unions can each chose one member in this position provided they are nationally representative – in practice only OGB-L and LCGB – and are represented in the company.
In addition, the member of the employee delegation with responsibility for equality between women and men has the right to additional paid time-off as set out in the table.
Number of employees |
Paid time off for member of employee delegation with responsibility for equality |
15 to 25 |
4 hours a month |
26 to 50 |
6 hours a month |
51 to 75 |
8 hours a month |
76 to 150 |
10 hours a month |
More than 150 |
4 hours a week |
The members of the employee delegation are entitled to circulate freely throughout the business and contact employees, after notifying the employer.
The employer must provide a room where the employee delegation can meet in, as well as access to internal and external communications. Where one or more of its members are freed from other duties, the employer should also provide an office and associated materials, plus, where appropriate, the necessary staff.
Training rights
The members of the employee delegation also have the right to paid training during their five-year period of office, which varies with the numbers employed (see table).
Number of employees |
Paid time for training for each member of the employee delegation |
15 to 49 |
1 week over period of office (5 years) – paid by the state |
50 to 150 |
2 weeks over period of office (5 years) – paid by the state |
More than 150 |
1 week each year – paid by the employer |
Members elected for the first time have a right to an additional 16 hours of training in the first year of office.
In addition, members of the employee delegation with special responsibilities have additional training rights. The member with responsibility for health and safety has the right to 40 hours training over the period of office (five years), plus another 10 hours if elected for the first time. This is paid by the state in companies with 150 employees or fewer. The member with responsibility for equality between women and men has the additional right to two half-days training a year. This is also paid by the state in companies with 150 employees or fewer..
Representation at group level
There is no representation at group level, in the sense of a group of independent companies. However, it is possible to set up a employee delegation at a higher level than a single company, when several companies can be said to form an “economic and social entity”, in other words a groups of businesses that are not independent but act together, even if legally they are separate entities.
An employee delegation at economic and social entity level can only be set up if at least three of the employee delegations at company level within the entity request it, and the request must be made within three months of the elections.
The role of the employee delegation at this level is to protect the interests of all the employees within the entity through an exchange of information. The members are elected by the members of the company-level employee delegations within the entity, and the number depends on the number of employees. A company with between 15 and 100 employees sends one delegate; a company with between 101 and 500 sends two; and a company with more than 500 sends three. There is also a possibility of providing representation for employees within the entity who work in companies employing fewer than 15 people.
The employee delegation at economic and social entity level has the same tasks and enjoys the same rights as the employee delegation at company level, but with some important exceptions. In particular, it has fewer information and consultation rights in relation to economic, technical and financial issues, and it is not involved in taking decisions jointly with management on topics such as monitoring systems, health and safety issues and general criteria on recruitment and promotion. There are also no delegation members with special responsibility for health and safety or equality. They are also only entitled to half the time of for training provided to a delegation member at company level.
[1] Loi du 23 juillet 2015
[2] Eurofound (2015), Third European Company Survey – Overview report: Workplace practices – Patterns, performance and well-being, Figures for Table 44
[3] ITM Total national (22.04.20) https://itm.public.lu/fr/conditions-travail/elections-sociales/resultats/total-national.html (Accessed 22.04.2020)
Companies with more than 1,000 employees or with a substantial state involvement must have employee representatives at board level. They generally have a third of the seats.
Public limited companies in Luxembourg (SAs) have a choice of governance structure. They can either have single-tier board system, with a board of directors, or a two-tier system with a supervisory board and a management board.[1]
Employees have representation at board level in companies which have at least 1,000 employees or which are more than 25% state owned or have a state concession relating to their main activity. The companies in this last group are listed in a government decree in 1974, when there were four, with a fifth, Luxembourg Airport being added in 2008.[2]. In 2019, there were 38 companies in Luxembourg with 1,000 or more employees.[3]
In companies with 1,000 or more employees the employee representatives make up one third of the supervisory board or board of directors, depending on the corporate governance structure chosen by the company. There must be at least nine members of the board concerned in total, with the result that there must be at least three employee representatives on the board.
In companies with at least 25% state participation or a state concession, there is one employee representative for every 100 employees, with a minimum of three employee representatives and a maximum of one third of the total board – either supervisory board or board of directors.
The employee representatives are elected by the employee delegation, from among the employees of the company, although they must have at least two years’ service. The one exception is the steel industry where three of the employee representatives are chosen by nationally representative unions (see section on unions) and can include non-employees.
The employee representatives have the same rights and duties as other members of the board of directors and their period of office is the same as other members. This depends on the articles of the company concerned, but it cannot be longer than six years. There is no limit on the number of terms of office which can be served.
Board-level employee representatives continue to be employees of the company concerned and are protected against dismissal during their period of office and for the following six months. However, if grave misconduct is alleged, the employer can take the issue to the labour court and request their dismissal.
Employee representatives cannot be members of more than two boards, and they cannot be members of more than one board operating in the same business.
[1] https://guichet.public.lu/en/entreprises/gestion-juridique-comptabilite/gestion/societe-anonyme/administration-SA.html#bloub-1 (Accessed 22.04.2020)
[2] CSL Entreprises concernées https://www.csl.lu/fr/vos-droits/droit-du-travail/la-representation-du-personnel/les-administrateurs-salaries-dans-les-societes-anonymes/entreprises-concernees (Accessed 22.04.2020)
[3] Liste des principaux employeurs par taille, statec, 2019 https://statistiques.public.lu/fr/publications/thematique/entreprises/principal-employeurs/princip-employeurs-taille/index.html (Accessed 22.04.2020)
European representatives from Luxembourg are chosen by the employee delegations. In most cases they must be employees, but this is not the case for the members of an SNB for a European Company, where union officials can also be chosen.
European Works Council
Members of the special negotiating body (SNB) for the EWC from Luxembourg are appointed by the central employee delegation – the body bringing together three members from each workplace if there are several workplaces in the same company – provided this exists. If there is no central employee delegation, members of the SNB are chosen by the main employee delegations. If there are manual and non-manual employee delegations, the regular member is chosen by the body representing the majority of employees, with the replacement chosen by the other. Members of the SNB must be company employees and members of the employee delegation.
The situation is the same for Luxembourg members of the EWC set up under the fallback procedure in the annex to the directive.
European Company
Luxembourg members of the special negotiating body (SNB) for the European Company are appointed by the central employee delegation – the body bringing together three members from each workplace if there are several workplaces in the same company – provided this exists. If there is no central employee delegation, members of the SNB are chosen by the main employee delegations. If there are manual and non-manual employee delegations, the regular member is chosen by the body representing the majority of employees, with the replacement chosen by the other. Members of the SNB must either be employees and members of the employee delegation, or representatives of one of the national representative unions, who are signatories to the agreement covering the company concerned – in other words they may be full-time union officials.
The situation is the same for Luxembourg members of the SE representative body set up under the fallback procedure in the annex to the directive but the individuals chosen must be company employees.
Luxembourg members at board level for a European Company, as set up under the fallback procedures, are also chosen by the employee delegations or delegation but again only from among the employees of the company.
Further information on the national SE legislation can be found here.
Health and safety is one of the issues covered by the employee delegation, now the only form of statutory employee representation at the workplace. (The joint company committee, a works council type body, which in the past existed alongside the employee delegation, has been abolished.) The delegate for safety and health, an individual employee chosen by the employee delegation, has specific health and safety responsibilities.
Basic approach at workplace level
The employer is required to ensure the health and safety of the employees in all areas linked to work. Depending on the size of the workplace, he or she can make use of internal or external experts to provide a health and safety service (see below) but ultimate responsibility remains with the employer. Part of the responsibility is to inform and consult with employees and their representatives.
Employee health and safety bodies
There is now only one way in which employee are represented at the workplace in Luxembourg. This is through the employee delegates (les délégués du personnel), who have wide powers in terms of information and consultation. They must be elected in all workplaces with 15 or more employees and are known collectively as the employee delegation (délégation du personnel). (The joint company committee (comité mixte d’entreprise) – a works council type body, which was previously set up in companies with 150 employees or more – was abolished in legislation passed in July 2015, although they continued to exist until their term of office ended – at the latest in 2018.) Although the employee delegation has specific health and safety rights, it also chooses an employee to take special responsibility for this area as the delegate for safety and health (délégué à la sécurité et à la santé). Before the 2015 changes, this representative was known as the delegate for safety (délégué à la sécurité).
Numbers and structure
All workplaces with at least 15 employees should elect at least one employee delegate, and the number increases with the size of the workplace (see table).
Number of employees |
Number of members |
15-25 |
1 |
26-50 |
2 |
51-75 |
3 |
76-100 |
4 |
101-200 |
5 |
Thereafter one extra member for every 100 employees until 1,100; then one extra for every 400 employees until 5,500; then one extra for every complete block of 500 employees. There is no upper limit. |
Each full delegate should also have a substitute delegate, able to replace them if needed, and in small workplaces, with only one full delegate, both the full delegate and the substitute attend meetings with the employer.
A delegate for safety and health should be appointed in all workplaces with at least 15 employees.
Research by the European Agency for Safety and Health at Work in 2014 found that 67% of workplaces in Luxembourg had delegates for safety and health (delegates for safety at that point), higher than EU-28 average for workplaces with health and safety representatives, which is 58%. (The figures are for workplaces with five or more employees.)[1]
Tasks and rights
The overall purpose of the employee delegation is to safeguard and defend the interests of the company’s workforce including in the area of working conditions. In the specific area of health and safety, the head of the company must inform the employee delegation and the delegate for safety and health (see below) about:
- the risks to safety as health as well as the preventive measures being taken – both in general and for specific types of work;
- the measures of protection to be taken and the protective equipment to be used; and
- changes in absence rates.
The employee delegation also participates in:
- labour protection, the protection of the environment and the prevention of accidents at work and occupational diseases; and
- the implementation of policies to prevent violence and sexual harassment at work.
In private sector organisations with at least at least 150 employees, there are some areas where decisions which must be taken jointly by the employer and the employee delegation, including one covering health and safety. This is “the introduction or alteration of measures relating to workers’ health and safety and the prevention of occupational diseases”.
In addition to the rights that the employee delegation has, the delegate for safety and health has some more specific rights. The employer is required to inform and consult the employee delegate for safety and health about:
- risk evaluation;
- protection measures and protective equipment;
- declarations made to the labour inspectorate;
- any action that could have a substantial effect on health and safety;
- the appointment of staff with responsibility for health and safety and risk prevention;
- measures taken relating to first aid, fire fighting and staff evacuation;
- measures intended to make links with outside bodies on first aid, urgent medical assistance, rescue and fire fighting;
- the use of either internal or external expertise in the area of health and safety;
- the health and safety training of employees;
- an evaluation of the risks that the activities of the company might pose to the environment, as far as health and working conditions are concerned; and
- the measures being taken to protect the environment, as far as the health and the working conditions of the employees are concerned.
The delegate for safety and health also has the right to ask the employer to take action to reduce the risks to employees.
However, in many ways the crucial right of the delegate for safety and health is the ability to undertake a weekly inspection of the workplace, together with the employer or a representative of the employer. In temporary sites with fewer than 150 employees this inspection can only made with the agreement of the head of the workplace, and in administrative workplaces – in other words offices– the inspection can only happen twice a year. The delegate for safety and health should record his or her findings in a register to which the labour inspectorate and other employee delegates have access. In addition, in cases where there is an immediate need for the labour inspectorate to intervene, he or she is able to contact the inspectorate while at the same time informing the employer and the employee delegates. The labour inspectorate can also ask to be accompanied by the delegate for safety and health in its inspections or ask the delegate for safety and health for information about accidents.
Finally there are also obligations relating more generally to health and safety in the organisation which further strengthen the rights of the employee delegation and the delegate for safety and health. These state in general that employers must consult their employees and their representatives on all issues concerning health and safety at work, including allowing them to make proposals. The employees or the delegates for safety and health must be consulted in advance on or participate in decisions concerning:
- any action which could have substantial effects on safety and health;
- the designation of employees being given health and safety tasks;
- information relating to risks, protective measures and accidents;
- the use of external health and safety services; and
- the health and safety training being provided.
In addition, those responsible for health and safety services within the organisation, whether internal or external, are required to cooperate with the employee delegation. The employee delegation also has certain rights in relation to medical services;
- to be given a copy of annual report by the occupational physician, where one is produced;
- to ask the occupational physician to carry out additional medical examinations; and
- to be given a list of occupations which pregnant or breastfeeding women should not carry out.
The employee delegation must be given details of any workers aged less than 18 and the delegate for safety and health should be involved in their supervision.
Frequency of meetings
The employee delegation meets once a month and the joint company committee meets once every three months, although it can meet on other occasions if a quarter of the members ask for this.
Election and term of office
Employee delegates and their substitutes are elected by secret ballot using proportional representation. Candidates must be nominated by one of the unions or by at least 5% of the employees.
The delegate for safety and health is chosen by the employee delegates, either from among themselves or from the employees as a whole. Where the individual chosen is not a member of the employee delegation, he or she can attend all meetings in a consultative capacity.
The term of office for employee delegates is five years.
Resources, time off and training
Employee delegates have the right to paid time off for their duties. In workplaces with up to 500 employees this is calculated on a pro-rata basis, with of 40 hours’ time off per week for every 500 employees. In larger workplaces at least one employee delegate is completely freed from normal duties. In addition the time spent in meetings of the employee delegation is paid time off.
The delegate for safety and health should be given sufficient paid time off and the necessary means to carry out his or her responsibilities and not suffer any loss of pay because of his or her inspection tours or the support he provides to the labour inspectorate.
The members of the employee delegation have the right to paid training, ranging from one week over five years in smaller workplaces – 50 employees or below – to one week per year in workplaces with more than 150 employees.
The legislation states that the delegate for safety and health should receive appropriate training for the role, which goes beyond that foreseen for employee delegates and is also updated from time to time. A detailed regulation states that this should consist of training on basic health and safety issues of no more than eight hours and further training specific to the industry concerned, followed by at least one day’s refresher training after five years.
The employer must provide a room for the employee delegation to meet in; and, where one or more of its members are entirely freed from other duties, the employer should also provide an office and associated materials.
Protection against dismissal
Neither the employee delegates nor the delegate for safety and health may be dismissed by the employer, other than for gross misconduct. Where the employer alleges that gross misconduct has taken place, the issue must be decided by the labour court, before the individual can be dismissed.
Other elements of workplace health and safety
Employers must designate one or more of their employees to undertake the necessary health and safety tasks. These “designated employees” (salariés désignés) may not be disadvantaged for carrying out their duties and they must have sufficient time and be sufficiently capable to carry them out. If the employer does not have sufficient capacity or skill internally he or she can make use of an external health and safety expert or service. The number of designated health and safety employees required varies according to the number of employees and the industries concerned is set out in great detail in separate regulation (Grand-Ducal Order 9 June 2006). This also sets out the required qualifications and the time required to undertake the work.
In companies with fewer than 50 employees the employer can take the role of the designated employee, provided he or she has the necessary qualifications.
All employers must also provide a medical service, although only the largest (with more than 5,000 employees (3,000 if at least 100 are at particular risk) must provide it internally.
National context
The main body dealing with health and safety at work is the Labour and Mines Inspectorate (L’Inspection du travail et des mines – ITM). Compliance with health and safety laws and regulations in Luxembourg is ensured by the same inspectorate, which works under the Ministry of Labour, Employment and the Social and Solidarity Economy (Ministère du Travail, de l'Emploi et de l'Économie sociale et solidaire). The Labour and Mines Inspectorate also enforces laws relating to general labour rights.
Trade unions and employers are able to influence health and safety policy through their membership of the tripartite Economic and Social Council (Conseil économique et social – CES). The Council covers a very wide range of issues, but it has dealt with health and safety, producing a formal opinion on stress in 2006. There is also a more narrowly focused Permanent Committee for Labour and Employment (Comité permanent du travail et de l’emploi), which deals with health and safety among other issues.[2]
Luxembourg legislation does not refer specifically to psychosocial risks. However, legislation passed in 2000 (Loi du 26 mai 2000 concernant la protection contre le harcèlement sexuel à l’occasion des relations de travail) outlawed sexual harassment at the workplace, extended to general harassment in 2006, and legislation passed in 2006 (Article 4) and specifically makes clear that it applies to civil servants (fonctionnaires).
Key legislation
Labour Code
Book III: Protection, safety and health of employees
Book IV: Employee representation
(After changes introduced by the Law of 23 July 2015 on the reform of the social dialogue within companies)
Grand-Ducal Order 9 June 2006
Code du Travail
Livre III: Protection, sécurité et sante des salaries
Livre IV: Représentation du personnel
(Loi du 23 juillet 2015 portant réforme du dialogue social à l'intérieur des entreprises)
Règlement grand-ducal du 9 juin 2006
[1] Second European Survey of Enterprises on New and Emerging Risks, European Agency for Safety and Health at Work, 2016
[2] For more information on the national context see OSH system at national level – Luxembourg by Nadine Schneider, OSH Wiki https://oshwiki.eu/wiki/OSH_system_at_national_level_-_Luxembourg
In Luxembourg, no particular legal structures to facilitate or regulate the introduction of profit-sharing and employee share ownership schemes or tax incentives exist. Nevertheless, different forms of employee financial participation are common in practice.
Although the Luxembourgian Parliament and social partners discussed different issues of financial participation in the 1980’s, official government support or specific fiscal incentives for it have still been lacking.1 var obj = document.getElementById('note_hidden'); obj.value = obj.value + '1
The findings on the prevalence of workers’ participation schemes in Luxembourg differ. More recent studies show an incidence of participation schemes higher than the European average.
According to the findings of the fifth European Working Conditions Survey (EWCS, conducted in 2012) 1 var obj = document.getElementById('note_hidden'); obj.value = obj.value + '1
Currently, there are different approaches in government policy for financial participation across the EU. However, there is an absence of a comprehensive legal framework for employee financial participation in Luxembourg. Furthermore, a specific tax regime with tax rules and incentives for different types of schemes is missing.1 var obj = document.getElementById('note_hidden'); obj.value = obj.value + '1
The trade unions view employee financial participation critically. Proposals for promoting employee share ownership are not generally supported by trade unions, as they are afraid of losing control over the system of collective agreements.1 var obj = document.getElementById('note_hidden'); obj.value = obj.value + '1
- European Foundation for the Improvement of Living and Working Conditions (2007): Background paper. Financial participation of employees in the European Union: Much ado about nothing?, Background paper, Luxembourg: Office for Official Publications of the European Communities.
- Commission of the European Communities (2003): Report of the High Level Group of independent experts on cross-border obstacles to financial participation of employees for companies having a transnational dimension, Luxembourg: Office for Official Publications of the European Communities.
- European Foundation for the Improvement of Living and Working Conditions (2001): Recent trends in employee financial participation in the European Union, Luxembourg: Office for Official Publications of the European Communities.
- European Foundation for the Improvement of Living and Working Conditions (2012): Fifth European Working Conditions Survey, Luxembourg: Office for Official Publications of the European Communities.
- European Foundation for the Improvement of Living and Working Conditions (2010): European Company Survey 2009. Overview. Luxembourg: Office for Official Publications of the European Communities.
- Lowitzsch, J., Hashi, I. & Woodward, R. (2009): The PEPPER IV Report: Benchmarking of Employee Participation in Profits and Enterprise Results in the Member and Candidate Countries of the European Union. Country Profile “Luxembourg”.
Trade Unions and Sectoral Trade Union Associations
- OGB-L - Luxembourg Confederation of Independent Trade Unions
- LCGB - Christian Trade Union Confederation
- CGFP - Civil Servants' Confederation
- LCGB - Christian trade union confederation
- CGFP - civil servants' confederation
- FDUSE - Teachers' union affiliated to CGFP
- SEW - Education and Science Workers' Union
- SNE - Teachers' union affiliated to CGFP
- FNCTTFEL - Transport workers’ union
- FCPT-SYPROLUX - National railway workers’ union affiliated to the LCGB
- APESS - Secondary and Higher education teachers' union
- FGFP - Municipality workers’ union
- ALEBA - Banking and Insurance workers' union (En)
- NGB - Neutral Union of Luxembourg Workers
- SECEC - LCGB/OGB-L joint EU Secretariat
- National Postmen Union affiliated to CGFP
- Association of Police officers affiliated to CGFP
- Association of Government employees affiliated to CGFP (AEE)
- Union of Steel and Mines Employees affiliated to the LCGB (SESM)
- Union of Employees in the financial sector affiliated to LCGB (SESF)
Employer Organisations and Representative Employer Associations
- UEL – Union of Luxembourg Enterprises
- FEDIL – Business Federation Luxembourg
- ABBL - Luxembourg Bankers' Association (En)
- CLC – Service, Trade and Transport Union
- Federation of Craft Workers
- HORESCA - Hotels and Catering Employers’ Federation
- Chamber of Commerce
- Chamber of Craft Workers
Professional Associations
- Chamber of Commerce
- Federation of Craft workers
- Chamber of Agriculture
- Chamber of Wage Earners
- Chamber of Civil Servants and Public Employees
Government
- Ministry of Labour and Employment
- Ministry of Social Security
- Ministry of Education and Professional Training
- Ministry of Higher Education and Research
- Ministry of the Economy and Foreign Trade
Other Links (Governmental and non-governmental)
- Luxembourg Government
- General Directory of Government web links and portals
- Luxembourg Business and Company Portal (Guichet unique) (En)
- LEGILUX - Luxemburg Legislation Register (Fr)
- ITM - Labour and Mines Inspectorate (Fr)
- ALE - National Employment Agency
- CES - Economic and Social Council
- RETEL Employment Observatory, Ministry of Employment and Work (Fr)
- National Observatory of Work Absenteeism (Fr)
- STATEC - National Statistical Institute of Luxembourg (En)
- CEPS/INSTEAD - International Network for Studies in Technology, Environment, Alternatives, Development (En)
- ULC - National Consumer Protection Union
- INFP - National Institute for the Development of Vocational Training (En)
- University of Luxembourg (En)
- National Research Fund (En)
- National Conjuncture Committee
- Competitiveness Observatory, Ministry of the Economy and Foreign Trade
- CVCE - Research and Documentation Centre for European Studies
- European Research and Studies Institute Robert Schuman