ARTICLE
22 January 2024

New Law On Public Holidays

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Arendt & Medernach
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Together with our regulatory consultants and investor services experts, we bridge the gap between legal/tax advice and its implementation. We deliver best-in-class services along our clients’ business life cycles.

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In 2019, Luxembourg introduced a new public holiday on 9 May to celebrate Europe Day, bringing the number of public holidays to 11.
Luxembourg Employment and HR
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New rules for scenarios in which two public holidays fall on the same day come into force very soon.

In 2019, Luxembourg introduced a new public holiday on 9 May to celebrate Europe Day, bringing the number of public holidays to 11.

However, in 2024, the date of Europe Day coincides with Ascension. The law did not take this possibility into account at the time, thus creating a legal vacuum with regard to the employment law consequences (loss, transfer, damages or compensation for one of the public holidays?).                   

In this context and against the backdrop of the resulting legal uncertainty, bill of law 82661 was submitted to Parliament with the objective of clarifying and outlining rules for situations in which two public holidays fall on the same day.

The bill of law has just received a first positive vote on 16 January 2024 and should therefore be exempted from the second constitutional vote shortly. The resulting law will be published soon afterwards (the "Law").

The new Law provides as follows:

  • General rule when two public holidays fall on the same date
    If two public holidays fall on the same day, the employee concerned is entitled to time off in lieu, which must be granted in the three months following the date of the public holiday in question.
    (+1 day off in lieu)
  • 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, as from the day following the public holiday in question. In this case of Europe Day and Ascension falling on the same day this year, it would be from 10 May 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).
      (1 day off in lieu + 1 day off in lieu for the 2nd public holiday)
    • 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
    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 effectively worked on the day)

NB: it is not possible to receive financial compensation for a day off in lieu due in place of a public holiday. It must be taken in kind.

The Law will enter into force four days after its publication in the Luxembourg Official Journal.

Footnote 

1. Bill of law 8266 amending: 1° Book II, Title III, Chapter II, of the Labour Code; 2° Article 28-4 of the law of 16 April 1979 outlining the general status of civil servants, as amended.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
22 January 2024

New Law On Public Holidays

Luxembourg Employment and HR
Contributor

About Arendt

Arendt combines the entire value chain of services dedicated to Asset Managers, Banks, Insurers, Public Institutions and Private Clients operating in Luxembourg.

-Legal & Tax
-Regulatory & Consulting
-Investor Services

Legal & Tax

We assist clients in structuring and running their business from a legal and tax standpoint across Luxembourg. Our teams directly serve international clients or work in close collaboration with foreign partner law firms.

Together with our regulatory consultants and investor services experts, we bridge the gap between legal/tax advice and its implementation. We deliver best-in-class services along our clients’ business life cycles.

The 450 legal experts of Arendt & Medernach have a wealth of experience in a wide variety of specialisations. Together, they are able to advise on a complete range of 15 complementary practice areas, including Investment Management, Private Equity, Banking and Corporate Law.

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