Those planning to work in Luxembourg will discover that the government looks after its workforce with strict labour laws regarding work hours, leave, taxes and minimum wage. This means expats in Luxembourg will benefit from a good work-life balance and decent salaries, while some may even qualify for lower tax rates for their first eight years working in the country.
Luxembourg has a large international community and is highly accommodating of foreigners. While it may prove tricky to land a job at first, you can usually adjust quite easily to the workplace in Luxembourg once you find one, provided you speak one of the local languages.
Fast facts
Business language
While French, German and Luxembourgish are all official languages, French is most widely used in business. That said, German and Luxembourgish are sometimes spoken in the workplace, while English is rarely spoken.
Business hours
Monday to Friday, 8am or 9am to 5pm or 6pm. Many companies have flexible hours, meaning employees can arrange their hours to suit them, provided they work 40 hours a week.
Business dress
The dress code in Luxembourg is formal and conservative. Luxembourgers generally wear high-quality clothes while avoiding bright colours. Men wear suits and ties, while women typically dress in suits, dresses, skirts, and blouses.
Greetings
A firm handshake is the appropriate greeting between business associates. Three light kisses on the cheeks are typical among friends but not between two men. You should continue to address everyone as Monsieur or Madame followed by their surname until told otherwise.
Business cards are exchanged when first meeting a business associate. They typically mention both the person's job title and academic title. We advise that expats in Luxembourg have their business cards printed in both French and German.
Gifts
Gifts are largely not exchanged in Luxembourg's business world. However, when invited to someone's house, it is customary to bring flowers, chocolates, or a good bottle of wine.
Gender equality
Luxembourg created the Ministry of Equality between Women and Men in 2015, whose sole purpose is to create a gender-equal society. The government also passed new legislation that enforces equal pay between genders. Despite these improvements, gender equality in Luxembourg is still a work in progress, though it is improving each year as more women join the workforce. Expat women working in Luxembourg shouldn't face any discrimination.
Business culture in Luxembourg
While the work culture in Luxembourg is conservative and formal, the labour laws favour employees, and expats will most likely benefit from improved work-life balance and a good salary.
Business structure
Business in Luxembourg is hierarchical, and senior-level employees are highly respected. Decision-making, therefore, occurs at the top of the organisation. Despite this traditional structure, many businesses are adopting a different management approach to increase staff participation.
Work-life balance
Workers in Luxembourg generally have a good work-life balance. Full-time employees work eight hours a day, five days a week, totalling 40 hours per week. Overtime is mostly paid, but employees are legally prohibited from working more than 48 hours weekly.
Full-time employees are entitled to at least 25 days of leave a year, excluding the ten annual public holidays. This may differ for fixed-term or part-time employees.
Meetings
Meetings in Luxembourg are formal and follow protocol. The purpose of a meeting is often to formalise a decision or give instructions, as often the decision-making is done before the meeting. Small talk is kept to a minimum, and rules of conduct are closely followed.
Time
Punctuality is taken seriously in Luxembourg, both inside and outside the workplace. If you are running late, you should call to inform whomever you are meeting. Workers in the country follow schedules closely and adhere to deadlines.
Communication
Expats will generally find Luxembourgers rational and pragmatic in the workplace. Strong criticism and assertiveness are not appreciated; instead, communicate with courtesy and an element of charm.
Expats should avoid high-pressure negotiation tactics and be careful not to rush decisions. Emotional outbursts, boasting about achievements, and exaggerating are also not welcome.
Dos and don'ts of business in Luxembourg
- Don't arrive late to meetings or business engagements
- Do dress formally and conservatively
- Do greet people with their surname and honorary title
- Do keep one's personal and work life separate, and respect one's colleagues' privacy
- Don't organise business meetings in July and August or around Easter and Christmas, as many people go on leave during these times of the year
Are you an expat living in Luxembourg?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Luxembourg. Please contact us if you'd like to contribute.
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