As the new academic year draws near, many students are preparing to enter the world of work for their first professional experience. For employers, it’s an opportunity to pass on their expertise… but hosting an intern also requires compliance with a few essential rules.
Here is a simplified overview to help you welcome an intern with peace of mind.
What types of internships are there?
There are two categories of internships:
Mandatory internships required by an educational institution
The internships referred to in this section are part of the curriculum of an educational institution, whether based in Luxembourg or abroad. They do not include mandatory internships relating to vocational training, career guidance, or access to regulated professions.
This type of internship requires a tripartite agreement signed by the educational institution, the intern (or their legal guardian if the intern is a minor), and the host company.
Practical internships aimed at gaining professional expertise
Intended to provide hands-on experience, these internships may be arranged directly by and between a company and a pupil or student. A bipartite internship agreement is then signed by the two parties.
A person is considered a pupil or student if they:
- are enrolled in a Luxembourgish or foreign educational institution and regularly attend a course of study;
- hold a Luxembourgish secondary school leaving certificate or its equivalent;
- have successfully completed a first cycle of higher or university education.
In the latter two cases, the entire duration of the internship must fall within 12 months following the end of the last school enrolment that led to earning one of the diplomas mentioned. In point of fact, the aim of these non-mandatory internships is to help graduates transition into the job market and thus gain initial professional experience.
The duration of practical internships must not exceed 6 months within a 24-month period with the same internship supervisor.
Safeguards have been introduced to prevent excessive use of interns and thus prevent internships from becoming a form of undeclared work. Accordingly, the number of practical internships running simultaneously in a single company is limited to 10% of the company’s workforce. In companies with fewer than ten employees, only one internship is permitted at a time.
These restrictions do not apply during the period from 1 July to 30 September inclusive.
What about interns from third countries?
If interns from outside the European Economic Area and Switzerland are hired for an internship in Luxembourg and do not yet have a Luxembourgish social security number, they must obtain one. To do this, the intern or internship supervisor must contact the General Directorate of Immigration (part of the Ministry of Foreign Affairs) by email.
The Directorate will issue the social security number, which will then be automatically forwarded to the Joint Social Security Centre.
Depending on the intern’s personal situation, additional steps may be required, such as applying for a residence or work permit.
What about social security affiliation?
Affiliation to Luxembourg’s social security system depends on the nature of the internship considered.
For mandatory internships
If the intern does a mandatory internship that lasts no more than 3 months, he or she will only be covered by occupational accident insurance. If the internship exceeds 3 months, the intern will be affiliated to all branches of social security and will contribute accordingly, based on a minimum contribution equal to the statutory minimum wage.
The intern will not be affiliated with the Joint Social Security Centre in the following cases:
- the intern does an internship prescribed by a Luxembourg-based institution;
- the intern is legally resident in Luxembourg;
- the intern does an internship prescribed by a foreign educational institution while being covered for accident risk in their country of residence, either through school-provided insurance or under the social security scheme of the country of residence.
For practical internships
In the case of a practical internship, if the internship lasts no more than 3 months, the intern will only be covered by occupational accident insurance. If the internship exceeds 3 months, the intern will be affiliated to all branches of social security and will contribute accordingly, based on a minimum contribution equal to the statutory minimum wage.
How should interns be remunerated?
Regardless of the type of internship, the minimum remuneration payable to the intern depends on the duration of the internship.
It should also be noted that the case of a part-time internship agreement, the maximum duration is calculated in hours, and the compensation outlined below must be prorated accordingly.
For mandatory internship:
| Duration of internship | Minimum remuneration (based on index 968.04) |
|---|---|
| Less than 4 weeks | No mandatory remuneration |
| As of 4 weeks or more | 30% of the unqualified social minimum wage (€811.12) |
Conversely, the law allows for an exemption from the obligation to pay compensation if the educational institution explicitly prohibits remuneration in the internship agreement and makes compliance with this prohibition a condition for recognising the internship.
In such cases, the pupil or student must submit the internship agreement to the Minister responsible for Labour for certification prior to the start of the internship. This certification serves as a formal exemption from the obligation to remunerate the intern.
For practical internships:
| Duration of internship | Minimum remuneration (based on index 968.04) |
|---|---|
| Less than 4 weeks | No mandatory remuneration |
| Between 4 and 12 weeks inclusive | 40% of social minimum wage for unskilled workers* (€1,081.49) |
| Between more than 12 and 26 weeks inclusive | 75% of social minimum wage for unskilled workers* (€2,027.80) |
*For interns who have successfully completed a first cycle of higher or university education, the reference wage is the social minimum wage for skilled workers.
Key points to keep in mind
What an internship agreement must include
Every internship agreement must include the following details without fail:
- Tasks assigned to the intern;
- Start and end dates of the internship, and the maximum weekly hours of attendance by the intern;
- Terms for authorised absences, particularly for attending job interviews;
- Remuneration for the intern, if any;
- Appointment of a mentor;
- Possible benefits available to the intern;
- Social protection scheme applicable to the intern, especially accident insurance;
- Terms for unilateral or mutual termination of the agreement prior to the end of the internship.
Purpose of the internship
Internships must serve an informative, guidance, and vocational training purpose. Interns must not be assigned tasks requiring performance equivalent to that of a salaried employee. Moreover, they must not be used to replace permanent staff, cover for temporarily absent employees, or respond to temporary increases in workload.
A mentor to advise and guide the intern
Each intern must be assigned a mentor responsible for integrating them into the company, providing regular supervision, answering questions, offering guidance and advice and, where the internship lasts 4 weeks or more, conducting a detailed and critical evaluation at the end of the internship.
Maintaining a register of internships
The host organisation must maintain a register of internships, which may be consulted at any time by staff representatives and must be made available to the Labour and Mines Inspectorate upon request.
Rights to be respected
Legal provisions concerning working hours, weekly rest, public holidays, annual leave, sexual harassment, health and safety at work, and the employment of young workers also apply to interns.
In practice, a medical examination request must be submitted to the occupational health service before the internship begins. Furthermore, any accrued but unused leave at the end of the internship must be compensated in the form of a payment.