Employment & Labor Law
Indefinite-term employment contract (CDI)
The CDI organizes employment without a set end date. Written document, subordination link, and termination: understanding the employment contract in Luxembourg.
Lexicon
Employment & Labor Law
Non-Compete Clause
A non-compete clause limits certain activities of the employee after their departure. The Luxembourg legal regime targets the personal exploitation of a competing business; a restriction on employment with another employer calls for a distinct analysis. Therefore, start by reading what the clause actually prohibits.
The legal regime notably requires a written form and frames the duration, activity, territory, and employee's remuneration. A general prohibition of any professional activity does not equate to this framed clause. The salary threshold is indexed: its value must be checked at the relevant date.
A financial compensation should not be presumed mandatory by simple transposition of French law. However, a promised indemnity in the contract must be examined as a contractual commitment. In the judgment of April 24, 2025, cited below, the Court of Appeal upholds the obligation to respect the agreed indemnity. This decision does not indiscriminately validate all possible restrictions. Before departure, also examine confidentiality, non-solicitation, and the modalities of lifting the clause.
Official Sources
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Employment & Labor Law
Termination of contract by mutual agreement
Termination by mutual agreement requires a written document signed by both parties. End date, amounts due, and effects on unemployment are to be examined.
Employment & Labor Law
Resignation with Notice
Resignation ends the permanent contract at the employee's initiative. Seniority, notice period, and early departure: prepare a reliable schedule.
Employment & Labor Law
Substantial Modification of the Employment Contract
A substantial modification affects an essential element of the contract. Its unfavorable nature and applicable procedure are decisive.