Hiring students or trainees – what should you watch out for?

Chaque employeur peut engager des jeunes élèves et étudiants pendant les vacances scolaires …
Quelles sont les conditions … à remplir, et à respecter ?

1. What is a student ?

Is considered as a student :

• Aged between 15 and 27 years

• Registered in a (Luxembourgish or foreign) school

• Having completed or dropped out of school, if registration ended in the 4 months preceding the employment start

2. Student contract

Each employer has to prepare an employment contract for student, which as to be signed at the latest when the student starts to work. This contract has to:

• be concluded in writing in 3 copies (employer, student, ITM – Inspection du Travail et des Mines du Luxembourg), and signed by the employer and the student (and his legitimate if he is minor)

• Duration of the occupation : maximum 2 months per calendar year (even in case of multiple contracts)

• Mandatory informations :

– Name, first name, birthdate and address of the student
– Name and address of the employer
– Date of beginning and end of the contract
– Nature / object of the contract
– Daily and weekly working hours
– Agreed salary and payment frequency

• Between 15 and 18 years old :

– No Sunday work
– No work on Luxembourg legal holidays
– No overtime
– No night work
(Exception: ministerial authorisation, which may allow work until 10 pm)

3. Social insurance

The employer has to declare the student to the Luxembourg Social Security Department (CCSS – Centre Commun de la Sécurité Sociale).
No contributions to health, pension and care insurance have to be calculated and paid, however the contribution to the accident insurance will be in charge of the employer.

4. Income taxes

No income taxes have to be deducted from the salary paid to students during school holidays, nevertheless the employer has to apply for an income tax exemption at the Luxembourg Tax Authorities (for any hourly salary equal or less than 14 EUR).

5. Salary

The remuneration equals to 80 % of the social minimum wage to be paid to a non-qualified employee (index 794.54, valid on 01.01.2017) :

• 18 years old and older : hourly wage = 9,2420 Eur / monthly wage = 1.598,87 Eur
• Between 17 and 18 years old : hourly wage = 7,3936 Eur / monthly wage = 1.279,10 Eur
• Between 16 and 17 years old : hourly wage = 6,9315 Eur / monthly wage = 1.199,15 Eur

• Legal holidays : not remunerated

• Absence for illness: not remunerated (CNS Caisse Nationale de Santé does not intervene for the payment of monetary compensation)

• The salary paid cannot exceed 14 EUR per hour

6. Holidays, illness, legal holidays, Sunday work, overtime

• Holidays :

– no annual recreation holiday
– entitled to extraordinary holiday, but not paid

• Illness :

– not remunerated (no compensation money is paid by the Luxembourg Health Care)

• Legal holiday :

– The adolescent (between 15 and 18 years old) is not allowed to work on a statutory holiday
– (except in case of ministerial authorisation *)

• Sunday work :

– The adolescent (between 15 and 18 years old) is not allowed to work Sundays
– (except in case of ministerial authorisation *)

*In case of ‘force majeure’, a ministerial authorisation has to be introduced

• Weekly rest :

For each 7-day period, the adolescent (between 15 and 18 years old) has to rest 2 consecutive days, (including normally Sundays)

7. Termination of the employment contract for student

Generally, the employment contract for students cannot be terminated, but expires on term.
A termination by mutual agreement and termination for serious misconduct are however possible.

8. Steps

• Establish a student employment contract (in 3 copies: student, employer, ITM)

• Affiliate the student to the CCSS ( by adding a copy of the student employment contract and the school certificate)

• Apply for the income tax exemption at the Luxembourg Tax Authorities

• Send a copy of the student employment contract, as well as the school certificate to ‘ITM – Inspection du Travail et des Mines’ (within 7 days of the start of work)

9. Legal references

Luxembourg Labour Law
Art. L.151-1 à L.151-9
Art. L.341-1 à 341.3
Art. L.344-1 à 344-17

It is possible under certain conditions to hire students outside school holidays … however some rules have to be considered.

1. Minimum age

16 years old
(the duration of compulsory schooling in Luxembourg is 12 years, i.e. 4 to 16 years)
(whereas an employer can hire a student during school holidays as of 15 years)

2. Employment contract

Each employer, who wants to hire a student outside school holidays has to conclude a fixed-term employment contract with the student.
This fixed-term employment contract may be renewed more than twice, for a total period up to 60 month (5 years), including renewals, without being requalified to an indefinite contract.
This contract has to be signed :

• at the latest when the student starts to work

• in 2 copies (employer, employee) in writing, and signed by the employer and by the pupil/student (and his legitimate if he is minor)

• Total hours per week: maximum average of 15 hours per week (calculated on a monthly or 4-weeks-period)

• Mandatory information :

– Name, first name, birthdate and address of the student
– Name and address of the employer
– Date of beginning and end of the contract
– Nature / object of the contract
– Daily and weekly working hours
– Agreed salary and payment frequency

• between 16 and 18 years old :

– No Sunday work
– No work on Luxembourg legal holidays
– No overtime
– No night work
(Exception: ministerial authorisation, which may allow work until 10 pm)

3. Social insurance

The employer has to declare the student to the Luxembourg Social Security Department (CCSS – Centre Commun de la Sécurité Sociale).
The student will be affiliated to all the Luxembourg regimes of the social insurance (health care, pension, care, and accident insurance), and all the social security contributions will have to be paid.

4. Income taxes

Income tax is due on the complete salary paid.

5. Remuneration

The remuneration corresponds to the social minimum salary paid to a non-qualified employee (cost of living index 794,54, valid on 01.01.2017) :

• 18 years old and older : hourly wage = 11,5525 Eur / monthly wage = 1.998,59 Eur
• Between 17 and 18 years old : hourly wage = 9,2420 Eur / monthly wage = 1.598,87 Eur
• Between 16 and 17 years old : hourly wage = 8,6644 Eur / monthly wage = 1.498,94 Eur

The salary paid cannot exceed 14 EUR per hour

6. Holidays, illness, legal holiday, Sunday work, overtime

• Holidays :

– Normal holiday is due (pro rata of legal holiday)
– Extraordinary holiday is due

• Illness :

– The “student employee” is paid according to the principle of salary continuation in case of incapacity to work

• Legal holiday :

– The adolescent (between 16 and 18 years old) is not allowed to work on a statutory holiday
– (except in case of ministerial authorisation *)

• Sunday work :

– The adolescent (between 16 and 18 years old) is not allowed to work on a Sunday
– (except in case of ministerial authorisation *)

*In case of force majeure, a ministerial authorisation has to be introduced

• Weekly rest :

For each 7-day period, the adolescent (between 16 and 18 years old) must benefit from a rest period of 2 consecutive days, including essentially Sunday.

7. Termination of the employment contract

Generally, a fix-term employment contract cannot be terminated, but expires on term.
A termination by mutual agreement and termination for serious misconduct are however possible.

8. Steps

• Establish a fix-term employment contract (in 2 copies: employee and employer)

• Affiliate the employee to the Luxembourg Social Security Department

9. Legal references

Luxembourg Labour Law
Art. L.122-1 – L.122-5
Art. L.151-1 à L.151-9
Art. L.341-1 à 341.3
Art. L.344-1 à 344-1

In addition to hiring students during or outside school holidays, each employer also has the possibility to hire trainees. There are 2 kinds of internships:
– the compulsory internship, being part of the student’s studies
– the voluntary internship
Any work performed as part of an internship must be considered as essentially educational, and cannot be confused with the occupation of a student during school holidays, which on the other hand implies the accomplishment of an actual work.

1. Contract – internship agreement

• Each employer has to sign an internship agreement with the school and the trainee, and not an employment contract.

• In case of a voluntary internship, an internship agreement must be signed between the employer and the trainee.

• There is no minimum or maximum duration of internships.

2. Remuneration

The employer does not have to pay an allowance to a trainee performing a voluntary or compulsory internship, unless the payment of compensation is provided in the internship agreement signed with the school.

However, the employer may pay an internship compensation to the trainee. The amount of this internship compensation may be determined by the employer, however, it must be reasonable and should cover all the expenses in relation to accommodation and/or meals incurred by the trainee. An excessively high compensation could lead to the requalification of the internship agreement to an employment contract.

3. Income taxes

2 cases are possible :

• Compulsory internship :

The employer has to apply for an exemption on income tax at the Luxembourg Tax Authorities for any internship allowance received during the first 6 months of employment.
However, the internship compensation will be taxable as of the 7th month of internship (for an internship where the duration will be greater than 6 months).

• Voluntary internship :

Any allowance paid during a voluntary internship is taxable, even as of the first day of the internship. Therefore, each concerned trainee will have to hand in a tax card to his employer.

4. Social insurance

3 cases are possible :

• No affiliation to Luxembourg Social Security Department necessary for :

– Resident trainees (remain covered by the school insurance or by the insurance of his parents)
– Non-resident trainees enrolled to an educational institution on Luxembourg territory (remain covered by their school social security cover)
– Non-resident trainees attending school abroad and covered by school accident insurance in their country of residence

• Affiliation to the Luxembourg accident insurance :

– Resident or non-resident trainees, who carry out a voluntary internship whose duration does not exceed 3 months
– Non-resident trainees attending an educational institution abroad, who perform a compulsory internship not exceeding 3 months, and who are not covered by the school accident insurance of their country of residence

• Affiliation to all branches of Luxembourg social security :

– Resident or non-resident trainees, who carry out a voluntary internship whose duration exceeds 3 months
– Non-resident trainees enrolled at an educational institution abroad, who perform a compulsory internship of more than 3 months, and who are not covered by the school accident insurance in their country of residence