Definition of a CDD contract and temporary employment
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
Even though the trial period for fixed-term contracts was initially the same as for permanent contracts, recent reforms established new rules specifically for fixed-term contracts. According to those, the maximum applicable duration may not exceed a quarter of the duration of the whole contract.
That was basically established as, in some cases, when following the trial period of a permanent contract, the trial period of a fixed-term contract exceeded the duration of the whole contract, which made no sense. So the new law establishes new trial periods, specifically for fixed-term contracts, in order to be proportional to the duration of the contract.
Article L.122-11 (1) of the Luxembourgish Labor Code therefore mentions that the trial period, while it cannot be less than 2 weeks, it can also not exceed a quarter of the whole duration of the fixed-term contract.
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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Learn moreWho 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:
