At national level, employees may be represented either by the staff delegation within the undertaking or through employee participation at the board of directors or supervisory board. At European level, they may be represented in a European works council. Specific rules apply in a European Company and a company resulting from a cross-border merger, conversion, or division.
The above-mentioned employees' representatives benefit from specific protection against dismissal.
Employees may also decide to join a trade union.
Staff delegation (délégation du personnel)
Any employer with at least 15 employees over a continuous period of one year before the official call for social elections must have a staff delegation.
Social elections are usually organised within all companies in Luxembourg every five years, the last national social elections having occurred in March 2024.
Employees' representatives are elected by the employees of the undertaking from among the employees of the undertaking. The number of members to elect depends on the number of employees occupied by the undertaking.
The general mission of the staff delegation is to safeguard and defend the interests of the employees with regard to working conditions, employment security and social statute. Their attributions may vary depending on the size of the undertaking. They usually have information and consultation rights and, under certain circumstances co-decision rights. They further prevent or settle any individual or collective claim between the employer and the employees and may refer any complaint to the Labour and Mines Inspectorate.
Employee participation at the board of directors or supervisory board
Any company having its seat in the territory of Luxembourg which is incorporated as a société anonyme and occupying at least 1,000 employees in the last three years must have staff representation on its board of directors or supervisory board.
Within these undertakings, one third of the directors are employees' representatives who are elected by the staff delegation among the employees of the undertaking. The duration of their mandate and their attributions are in principle the same as for the other directors.
European Works Council
Any community-scale undertaking or any community-scale group of undertakings must have a European works council.
A community-scale undertaking means any undertaking with at least 1,000 employees within the member states of the EU and at least 150 employees in each of at least two member states. A community-scale group of undertakings means a group of undertakings having at least 1,000 employees within the member states and at least two group undertakings in different member states with at least one group undertaking with 150 employees in one member state and at least one other group undertaking with 150 employees in another member state.
Within such a body, the representatives of the employees occupied in Luxembourg are elected by the staff delegation of the concerned undertaking.
The rights of the European works council will be determined in the agreement to be concluded in this respect. In principle, it will be limited to transnational economic and social questions concerning the entire community-scale undertaking or group of undertakings.
European Company – cross-border merger, conversion, or division
Specific rules apply to information, consultation and participation of employees in the event of the establishment of a European Company having its seat in Luxembourg or, in the event of a cross-border merger, conversion or division if the company resulting thereof has its seat in Luxembourg.
In such cases, negotiations may have to be started with the representatives of the employees of the companies participating in the European Company or in the cross-border merger, conversion or division.
Trade unions
Employees may choose to be affiliated with a trade union, which is in charge of defending the professional interests and the collective representation of its members as well as improving their life and working conditions.
While union density has seen a modest decline over time, Luxembourg continues to maintain relatively strong engagement in both workplace-level representation and trade union membership. Roughly 40% of workers are unionized, and collective agreement apply to over half the labour force.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
