Adopted in 2019 by the European Parliament, the directive on transparent and predictable working conditions in the EU aims to improve working conditions. In Luxembourg, the transposition of this directive was formalised this summer by the law of 24 July, which amends several legislative texts, in particular the labour code and the law establishing the status of civil servants. The two main objectives of this reform are to strengthen the rights of employees and to make employers more responsible, in favour of a fairer and more balanced working environment. Here are the main changes for both employees and employers.

For employees

Conversion of fixed-term contracts to open-ended contracts: after six months of service with the same employer and once the trial period is over, employees can now request that their fixed-term contracts be converted to open-ended contracts. The employer has one month in which to respond to this request, stating the reasons for its refusal in writing if it does not do so. “The employee’s request must be made to the employer no more than once in any period of twelve consecutive months,” explains the Labour and Mines Inspectorate (ITM), which has prepared a brochure on the subject.

Flexible working hours: after six months of service and the end of the trial period, employees on permanent or fixed-term contracts may ask to change their working hours from part-time to full-time, or vice versa. Once again, the employer is required to respond within one month, providing a written justification in the event of refusal. However, the text does not specify what the employer is liable to do if they fail to meet this deadline.

Greater transparency of working conditions: the employer’s obligation to provide a detailed and precise written employment contract has been strengthened. The contract must be submitted no later than the time the employee starts work and must include essential information such as the identity of the parties, the starting date, the place of work, the nature of the job, the working hours, the salary and its components, paid holidays, the termination procedure, the trial period, the applicable collective agreements, social security and the right to training. The law specifies the information that must be included in a permanent employment contract. “Where one or more essential items of information in the employment contract have not been communicated in advance, they must in any event be provided to the employee in the form of one or more documents during a period starting on the first day of work and ending on the seventh calendar day at the latest,” states the ITM.

Freedom to engage in parallel employment: except in the case of exceptions that must be justified on objective grounds relating to the security, confidentiality or integrity of the public service, clauses prohibiting employees from engaging in professional activity outside their working hours are now null and void. “However, exceptions are made to this prohibition where the combination of jobs is incompatible for reasons such as health and safety in the workplace, the protection of business confidentiality or the prevention of conflicts of interest,” explains the ITM.

Greater protection against reprisals: the new labour code formally prohibits any unfavourable treatment or reprisals against an employee who exercises his or her rights or lodges a complaint. Clauses contrary to this principle are explicitly declared null and void. The legislation also specifies that “an employee who considers that he or she has been dismissed or that an essential clause of his or her contract of employment has been amended may ask the employer to inform him or her of the reasons justifying the decision, and the employer is required to provide the precise reasons in the prescribed form and time.”

For employers

Increased documentation requirements: the requirements for documentation of employment and apprenticeship contracts have been increased. Employers must provide detailed and up-to-date information, including working conditions abroad for assignments of more than four weeks. This information includes the country in which the assignment will be carried out, its duration, the currency used for payment of remuneration, travel benefits and repatriation conditions.

Increased responsibility for training: the employer is required to provide, free of charge, the training necessary for the performance of the work for which the employee has been taken on. This training must be provided during working hours and considered as actual working time, as the legislation clearly states.

Publication of information online: the Labour and Mines Inspectorate is required to publish on its website clear and accessible information on employers’ obligations to provide information to employees, as well as model employment contracts. “To this end, various model employment contracts are published by the Labour and Mines Inspectorate on its single official national website,” states the legislative text.

Increased penalties for non-compliance: failure to comply with information and documentation obligations now exposes employers to higher fines, of up to €5,000 per employee concerned. The legislation specifies that “in the event of a repeat offence within two years, the penalties may be increased to double the maximum.”

This article was originally published in .