Insurance

Period of validity of the Collective Agreement

Applicable from 1 January 2021 to 31 December 2023. Then tacitly renewed on an annual basis unless revoked by one of the parties. (Article 2)

Personal and material scope

Scope (Article 1)

This Agreement shall govern the relationships and general conditions of employment between insurance companies which are members of the ACA (Association des Compagnies d'Assurances et de Réassurances [Insurance and Reinsurance Association]) and their employees working permanently in the Grand Duchy of Luxembourg, with the exception of:

• Employees belonging to senior management as referred to in Article L.162-8 of the Code du Travail [Luxembourg Labour Code].
  For the purposes of this Chapter, ‘senior management’ refers to workers who receive remuneration that is significantly higher than that of employees covered by the Collective Agreement or scaled in another way, taking into account the time needed to perform their duties, if that remuneration is in return for the exercise of genuine effective management power or where the nature of the tasks involves well-defined authority, broad independence in the organization of work and substantial freedom in working hours and, in particular, the absence of restrictions on working hours.
  Each company shall inform the contracted employee of the consequences of moving to senior management status in writing.

• Apprentices whose status is governed by Article L.111-11 et seq. of the Code du Travail.

The Joint Committee may specify the details of the scope of this Collective Agreement.

Remuneration

The basic salary is the starting salary resulting from the application of the salary scales in the Collective Agreement, including training levels, length-of-service bonus, individual increases, former length-of-service levels, performance levels and performance-based increases, three-year progress guarantees and salary increases granted in the context of the renewal of the Collective Agreements plus 1/13 of the non-recurring performance bonuses paid to employees who have reached or exceeded the threshold.

The following shall not form part of the basic salary: lump-sum bonuses (such as June bonus, signing bonus, exceptional bonus, special bonus, one-off bonus, etc.)

The basic salary as defined above constitutes the basis for calculating the 13th month and overtime.

Starting salary (Article 14 B)

Each classification group corresponds to a guaranteed minimum starting salary for full-time work.

Progression

From the starting salary, employees will be entitled to the following increases:

• Between the starting salary and threshold 1: For each employee concerned, an increase in their basic salary, calculated at index 100, of EUR 18 (index 100) gross over a period of 3 years is guaranteed. All increases included in the basic salary shall be set off against this guarantee, except for the length-of-service bonus.
• From threshold 1 and up to threshold 2: a minimum annual performance amount of EUR 4 (index 100) gross to be granted to 67% of employees. There is also a guarantee of an increase in their basic salary calculated at index 100 of EUR 12 (index 100) gross over a period of 3 years. All increases included in the basic salary shall be set off against this guarantee.

Performance-related pay attributed to employees who have reached or exceeded threshold 2 will be distributed to these employees in the form of a non-recurrent annual bonus (payable in January).

Three-year guarantees are payable at the beginning of the year.

Overtime work/statutory and/or contractual revalorisation increases (Article 6bis B)

Fixed-hours and flexitime system

In accordance with the provisions of the Code du Travail.

However, if the compensatory rest period (Article L.211-27 of the Code du Travail) is not taken, the increase will be 50%.

Work Organisation Plan (WOP)

The first 2 hours classified as overtime in the event of failure by the employer to comply with the 3-day notice period to announce a change in working hours under a Work Organisation Plan (WOP) are compensated by 1 hour’s rest (i.e. 1 hour per hour worked), or in cash at the standard rate (i.e. paid at 100%).

Hours classified as overtime in the event of failure by the employer to comply with the 3-day notice period to announce a change in working hours under a Work Organisation Plan (WOP) and deviating by more than 2 hours from the initial timetable are compensated by 1 hour’s rest (i.e. 1.2 hours per hour worked), or in cash at the rate of 1 hour plus 20% (i.e. paid at 120%).

The employee shall in principle determine when the compensation is taken unless this is precluded by the employer’s needs or the justified wishes of other employees.

Overtime work. Working on Sundays and public holidays. Night work (Article 6quater)

Compensation possible at the request of the employee

Possible cumulation of revalorisation increases (examples in point 5 of Article 6quater)

Training bonus (Article 14 C)

Employees receive a training bonus at the end of induction training which is fixed as follows: EUR 5 gross (index 100) for all function groups; this bonus shall be included in the salary and shall not be withdrawn when calculating the three-year guarantee.

June bonus for the years 2021 to 2023 (in euro) (Article 14 D)

2021

A June bonus is paid with the remuneration for June 2021.

This bonus is payable to employees in service on 15 June 2021 whose employment contract has not been terminated by the employee or terminated by the employer for serious misconduct by that date. For employees working on a part-time basis, the amount shall be paid pro rata to the working hours over a reference period from 1 June 2020 to 31 May 2021.

Employees on parental leave on 15 June 2021 will be entitled to the bonus corresponding to their category.

Employees on parental leave will be entitled to the bonus corresponding to their category pro rata to the time for which their employment contract was fully effective in relation to the time when it was suspended for a reference period from 1 June 2020 to 31 May 2021.

2022

A June bonus is paid with the remuneration for June 2022.

This bonus is payable to employees in service on 15 June 2022 whose employment contract has not been terminated by the employee or terminated by the employer for serious misconduct by that date.

For employees working on a part-time basis, the amount shall be paid pro rata to the working hours over a reference period from 1 June 2021 to 31 May 2022. Employees on parental leave on 15 June 2022 will be entitled to the bonus corresponding to their category.

Employees on parental leave will be entitled to the bonus corresponding to their category in proportion to the time during which their employment contract was fully effective in relation to the time when it was suspended for a reference period from 1 June 2021 to 31 May 2022.

2023

A June bonus is paid with the remuneration for June 2023.

This bonus is payable to employees in service on 15 June 2023 whose employment contract has not been terminated by the employee or terminated by the employer for serious misconduct by that date. For employees working on a part-time basis, the amount shall be paid pro rata to the working hours over a reference period from 1 June 2022 to 31 May 2023.

Employees on parental leave on 15 June 2023 will be entitled to the bonus corresponding to their category.

Employees on parental leave will be entitled to the bonus corresponding to their category in proportion to the time during which their employment contract was fully effective in relation to the time when it was suspended for a reference period from 1 June 2022 to 31 May 2023.

Exceptional bonus (Article 14 E)

An exceptional ‘COVID-19’ bonus of EUR 500 gross is paid with the September 2021 salary to each employee in service whose employment contract was not terminated by 1 September of the payment year in question.

For employees working on a part-time basis, the amount of the exceptional bonus to be paid shall be calculated pro rata to the working hours over a reference period running from 1 September of the year preceding the payment year in question to 1 September of the payment year in question. In the case of newly hired employees, the exceptional bonus to be paid shall be calculated pro rata to the time worked by the employee over a reference period running from 1 September of the year preceding the payment year in question to 1 September of the payment year in question.

 

For employees who left the company before 1 September of the payment year in question, the exceptional bonus shall be pro rata to the working hours and the time worked between 1 January and the date of departure in the payment year in question.

This bonus is exceptional and is not an integral part of the salary or package. Its payment does not give rise to any acquired right on the part of employees benefiting therefrom.

Household allowance and length-of-service bonus (Article 15)

A monthly length-of-service bonus shall be introduced and paid under the following conditions:

The bonus shall be paid with effect from 1 January of the year following that in which the employee reached the required length of service. Employees receiving a household bonus on 31 December 2014 continue to receive a length-of-service bonus which may not be less than the amount received under the old household bonus.

The length-of-service bonus may change only within the limits defined above. It should be specified that the years of service referred to are those spent with the same employer. If fewer than 40 working hours are provided for in the employment contract, the length-of-service bonus shall be paid pro rata to the number of hours usually worked.

Thirteenth month allowance (Article 16)

Subject to the provisions of Article 12 (conditions for introductory period and vocational training), the employee will be entitled, at the end of the year, to a ‘thirteenth month’ allowance, the amount of which is equal to the basic salary which the employer owes the employee for December.

If the employee enters into service during the year, they will receive the thirteenth month allowance at the end of the year on a pro rata basis according to the working months worked since starting.

If the (probationary, permanent or fixed-term) contract is terminated either by the employee or by the employer, the employee will receive with their last salary the thirteenth month allowance on a pro rata basis according to the working months worked over the year.

Working time

Working hours and working time arrangements (Articles 6 and 6bis)

Fixed-hours system

• 8 hours/day and 40 hours/week spread over 5 working days
• Working hours in excess of normal working hours are considered overtime hours

Flexible working time system

• Where the hours are spread over 5 working days or less, the contracted working time may be extended by mutual agreement to 9 hours per day (without exceeding the total weekly working time).
• The employee may, however, be employed beyond those limits, provided that the average weekly working time, calculated over the relevant reference period, does not exceed either 40 hours or the normal maximum weekly working time set by agreement.

Flexitime or WOP may be introduced

Flexitime (Articles L.211-8 and L.211-9 of the Code du Travail)

The reference period may be set at 6 months.

The regulations governing flexitime for insurance companies will specify the required core working hours and minimum and maximum daily working hours.

Arrangement for time recovery by:

• hours per day
• half-days
• whole days
• grouped days.

As there are differences between insurance companies in terms of required core working hours, compensation per hour will have to comply with the companies’ regulations governing flexitime.

For compensation after half-days, the employee shall send a written request to their immediate supervisor using a form provided for that purpose. Reasons must be given for any refusal within a reasonable period not exceeding 5 working days.

The purpose of organising recovery is to bring, as far as possible, excesses and deficits in working hours to zero at the end of the reference period.

The company must put in place a system to accurately record the hours worked.
At the end of the period, an individual statement of hours worked is produced.

At the end of the reference period, the staff delegation receives summaries of overall statements per organisational unit.

If a structural and repetitive pattern is revealed, the need for an increase in staff will also be analysed by the company at the request of staff representatives. For a reference period of up to 1 month, the number of excess hours which may be carried over to the next reference period may under no circumstances exceed 4 hours. This carry-over will have to be settled in the next reference period at the latest.

Each company has the obligation to record, file and make available records of their employees’ working hours, sickness and leave upon their request.

Work Organisation Plans (WOPs) (Articles L.211-6 and L.211-7 of the Code du Travail)

Each employer shall draw up in good time, and no later than 5 clear days before the start of the reference period, a Work Organisation Plan, covering at least 1 month, indicating the company’s foreseeable activity over the course of the Work Organisation Plan.

Where the reference period is covered by multiple successive Work Organisation Plans, these must all be drawn up within the same time period before the start of the Work Organisation Plan (WOP) in question.

Without necessarily being name-specific, it must allow all employees and their immediate supervisors to unambiguously know the working hours applicable to them.

Any Work Organisation Plan to be drawn up on the basis of this paragraph shall contain the following information, failing which it will be null and void:

• the beginning and end of the reference period and the Work Organisation Plan (WOP);
• normal working hours allowing all employees to know the organisation of their work, i.e. working hours per day and per week and the start and end of the working day;
• business closing days, statutory and customary public holidays and individual or group holidays;
• the weekly rest period of 44 consecutive hours and, where applicable, the compensatory leave due if this rest period is not observed.

Any Work Organisation Plan (WOP) drawn up on this basis must be submitted in advance to the staff delegation for their opinion no later than 5 days before the Work Organisation Plan (WOP) comes into effect.

The Work Organisation Plan (WOP) must be communicated to all employees concerned within the time period provided by the most appropriate means.

If the staff delegation disagrees, an appeal may be lodged with the Inspection du Travail et des Mines (ITM) [Inspectorate of Labour and Mines]. If the disagreement is maintained as properly found by the Director of the ITM, the matter may be referred to the Office National de Conciliation [National Conciliation Office]. Such appeals and referrals shall not have any suspensive effect.

Characterisation of overtime work

Any overtime work is subject to the authorisations and procedures laid down in the company’s internal and statutory provisions.

The following shall be considered as overtime:

• Fixed-hours system: any work performed beyond the daily and weekly limits of normal working hours, provided that these hours have been worked at the request of the employer or their representative and in accordance with the company’s internal regulations.
• Flexible working time system: In the case of a reference period of less than or equal to 1 month: excess working hours exceeding the number of hours carried over to the reference period, and hours already carried over once.
• WOP: Except in cases of force majeure, any hours worked beyond the limits laid down in one or more Work Organisation Plans for the whole day, week or reference period shall be regarded as overtime work provided that these hours have been worked at the request of the employer or their representative and in accordance with the company’s internal regulations.

By way of derogation, work performed – within the maximum working time limits (10 hours per day and 48 hours per week) – over and above the limits laid down in the Work Organisation Plan (WOP), for the day, week or entire organisation plan, shall not be regarded as overtime work if, during application of the Work Organisation Plan (WOP), the plan has to be amended at the request of the employer and if this amendment is communicated to the employees concerned with a notice period of at least 3 days before the event.

If the amendment occurs at the initiative of the employer less than 3 days before the event and if that amendment does not lead to an increase in working hours as initially planned but merely to a change in working hours, working hours exceeding the initial timetable by more than 2 hours are compensated by 1.2 hours for each hour worked instead of 1.0 for the first 2 hours.

Any problems relating to the implementing arrangements set out above may be referred to the Joint Committee.

Transposition at company level and monitoring of flexible working time systems and right of appeal (Article 6bis IV and V)

These arrangements are laid down in the Collective Agreement.

Rest days (Article 8bis)

Employees are entitled to 9.5 rest days per year.

Implementing arrangements

• For reasons of service organisation, a rest day may be set collectively for the whole sector on the advice of the Joint Committee set up by Article 22 of this Agreement.
• In that case, it shall be set when the calendar of public holidays referred to in the last paragraph of Article 6ter is drawn up. Employees on duty on that date will benefit from that collective rest day. Where, because of service need, certain employees will not be able to take advantage of that free day on the scheduled date, they will be entitled to a compensatory rest day.
• Any rest days taken individually by employees are to be taken during periods of low activity.
• Additionally, the arrangements for rest days are those laid down for leave days.
• One or more rest days may be set collectively for the company or for units of the company, the staff delegation having been consulted. Employees must be notified of leave days set collectively by the company within the first quarter of the year at the latest.

Right to leave

Public holidays (Article 6ter)

Public holidays are provided for in accordance with the Code du Travail. In addition, they will not work on Christmas Eve.

Annual leave (Article 8)

All employees are entitled to paid recreational leave in accordance with Articles L.233-1 to L.233-20 of the Code du Travail.

Duration of annual leave:

• 26 days for employees under the age of 50
• 27 days for employees aged between 50 and 54 (application: anniversary year)
• 28 days for employees aged 55 and over (application: anniversary year)

Notice of requests for leave must be given within a maximum of 1 month.

If, for essential service reasons, granted leave has to be postponed, the employer will bear the cost of the change to the employee.

For the first year of service, leave is at a ratio of one twelfth for each whole working month.

Fractions of working months exceeding 15 calendar days shall be counted as full months of work.

Fractions of days of leave of more than half a day shall be considered as whole days.

Where the employment contract ends in the course of the year, the employee shall be entitled to one twelfth of their annual leave per whole month of work. Without prejudice to the legal or contractual provisions relating to notice of termination. Fractions of working months exceeding 15 calendar days shall be counted as full months of work.

Extraordinary leave (Article 9)

The arrangements for taking leave are in accordance with the provisions of the Code du Travail.

Termination of contract

Termination of contract (Article 5)

Notice periods and severance pay, where applicable, are governed by the Code du Travail.

However, in the event of streamlining, reorganisation or cessation of operations, statutory notice periods shall be extended to employees as follows:

In the event that an employee who is less than 12 months from reaching retirement or early retirement at the end of the notice period is laid off, that notice period shall be extended until this is reached.

Statutory severance pay will be as follows:

Interview prior to lay-off is guaranteed for every employee, regardless of the number of employees in the company.

Changes in the legal situation of the employer, collective lay-offs and accompanying measures following termination of the contract are provided for in the Collective Agreement.

Health, safety and hygiene

Working at an illuminated display screen/Underground work (Article 7)

The Collective Agreement provides for adjustments in hours when the employee performs work at an illuminated display screen or works underground in an environment without natural light.

Other points (including sector-specific provisions)

Hiring (Article 3)

The contract must comply with Article L.121-4 of the Code du Travail.

In addition to these provisions, it must specify:

• the nature of the employment and the characteristics of the work to be carried out
• the duration of the contract or an indication that it is for a fixed period or for an indefinite period
• the starting salary and function group in which the employee is classified and any ancillary remuneration within the meaning of Article L.221-1 of the Code du Travail
• the escape clauses or additional clauses agreed by the parties.
  • upon entry into the company, any person hired shall: receive a copy of the Collective Agreement in effect in electronic form or, failing that, in paper form
  • receive a description of their function and a training report
  • be informed of their rights and duties
  • be informed of the function of the staff delegation.

The President of the staff delegation will receive within 8 days a list of persons recruited, indicating the services to which they are assigned and the type of employment contract (fixed-term contract, permanent contract, part-time contract) and a list of temporary staff and trainees (with the exception of summer students).
Regarding external consultants, including employees made available to the company within the meaning of Article L.421-1 § 2, a list shall be provided each quarter to the President of the staff delegation.

Probationary period (Article 4)

The probationary period must comply with the provisions of Articles L.121-5 and L.122-11 of the Code du Travail.

Classification (Article 13)

The employees covered by the Agreement are divided into six function groups classified according to education and/or functions. The Collective Agreement also provides for cases of change of classification.

To assign staff to six function groups, the concept of education completed is used only as a basis for assessment at the beginning of the career, in the absence of the other factors making up the criterion for each of the function groups.

In the event of a change of employer from one insurance company to another, at least the same basic salary up to threshold 1 as that received in the same function group with their former employer will be guaranteed for the same function group.

Function groups detailed in the Collective Agreement. Covers the 6 groups, namely:

• Group 1 – Carrying out simple work
• Group 2 – Employee has acquired a good level of knowledge of the service in which they operate
• Group 3 – Functions of managing daily tasks or providing qualified assistance relating to the performance of administrative, technical or commercial tasks, requiring advanced professional training, subject to periodic checks.
• Group 4 – Functions including responsibility for managing an administrative, technical or commercial activity and/or supervising tasks of a small group of individual contributors, governed by general procedures and subject to occasional checks
• Group 5 – Autonomous and varied function, requiring qualification, initiative and responsibility. This group includes: qualified employees who, through their vocational training, are considered to be the leading employees of a service area, who are called upon to take initiatives, to replace the head of a service area.
• Group 6 – Functions including responsibility for coordinating, planning, organising and managing the work of individual contributors.