Global Compliance Desk – Luxembourg

Luxembourg: New Rules Regarding Public Holidays

The Luxembourg Parliament recently approved a new Bill 8266 clarifying employee holiday entitlements when two paid public holidays fall on the same day. The Bill 8266 is expected to enter into effect before May 2024.

Historical Background – In 2019, Luxembourg introduced a new public holiday on 9 May to celebrate Europe Day, bringing the number of public holidays to 11. During the introduction of this new holiday, the legislature did not consider the consequences of what would happen if the holiday coincided with another public holiday. 

In 2024, the date of Europe Day shall coincide with Ascension Day on May 9, 2024. In this context, the Bill of Law 8266 (“New Law”) was submitted to Parliament to clarify and outline rules for situations where two public holidays fall on the same day. The new Law shall provide the following rules in case of two public holidays falling on the same day –

General rule when two public holidays fall on the same date – According to the New Law, if two public holidays fall on the same day, the employee concerned is entitled to one time off in lieu, which must be granted within the 3 months following the date of the public holiday in question.

Impact when two public holidays fall on the same working day – The Law provides for three different scenarios:

• • • Two public holidays fall on a working day on which the employee would normally work – In this scenario, the employee will be entitled to one day off in lieu, in addition to remuneration corresponding to the number of hours that they would normally have worked. The day off in lieu must be granted within three months, from the day following the public holiday in question. In the case of Europe Day and Ascension falling on the same day this year, the day off in lieu would fall on May 10, 2024 (1 day off in lieu + remuneration corresponding to the number of hours that would normally have been worked).
    • Two public holidays fall on a working day on which the employee would not normally work – In this scenario, the employee will be entitled to two days off in lieu, which must be granted in the three months following the day after the public holiday in question. However, if this is not possible due to business needs, these additional days of leave must be granted by 31 December of the year in question (excluding special rules that are applicable in the case of public holidays in November or December).
    • Two public holidays fall on a working day on which the employee would work for 4 hours or fewer – In this scenario, the employee will be entitled to two half days off in lieu, which must be granted in the three months following the day after the public holiday in question, and to the remuneration that they would have earned if they had worked normally on that day (1/2 day off in lieu + 1/2 day off in lieu for the 2nd public holiday + remuneration corresponding to the number of hours that would normally be worked). 

Impact for an employee who has to work on the day of the two coinciding public holidays – The Law states that employees who have to work on the date of the two public holidays will be entitled to a day off in lieu, as well as remuneration and legally mandated increases (1 day off in lieu + remuneration corresponding to the number of hours that would normally be worked + remuneration corresponding to the number of hours effectively worked on the public holiday + 100% increase in the normal hourly pay or the average of hours worked on the day).

Compensation instead of Time Off in Lieu – If an employee fails to use their paid time off within the allotted timeframe, employers are not required to provide financial compensation instead of the paid time off.   

Next steps: Employers should monitor the implementation timeline of the Bill and review their internal leave policies to ensure compliance with the new public holidays’ rules once passed.