Luxembourg employers, don’t forget the March 31 deadline regarding paid leave!

In Luxembourg, March 31 stands as the deadline for implementing collective leave scheme within your company, as well as the expiration date for any unused employee leave. 

Implementation of Collective Leave Closures

If you wish to establish collective leave closures, you must determine the closure period in advance with the staff delegation (or employees, if applicable) and notify all staff of this collective leave period before March 31.

Once set, these closure periods can be included in the leave schedule to ensure transparency and predictability for employees.

Unused leave expiration

According to the Labour Code, annual leave must generally be granted and taken within the calendar year. However, any untaken leave at the end of the year due to business needs or the preferences of other employees may be exceptionally carried over until March 31 of the following year.

After this deadline, unused leave is permanently lost unless exceptions apply. Notably, leave can be carried over beyond March 31 (illness, employee started working during the year). Of course, more favourable rules may apply within the company.

Our teams are available to answer any questions and assist you if needed.

Contact us for any assistance!