Reference letter in Luxembourg: legal framework and practice

Is there a practice reference letter system in Luxembourg?

Luxembourg legal provisions do not foresee a formal “reference letter” system in the sense of a discretionary, narrative letter of recommendation for an employee.

Instead, article L.125-6 of the Luxembourg Labour Code, establishes a legal obligation for the employers to issue an employment certificate (“certificat de travail”) upon termination of the employment contract; such letter is not issued automatically and is subject to the employee’s express request.

This right applies to all employees, irrespective of whether the employment ended by dismissal, resignation, or completion of a fixed-term contract. For fixed-term contracts, the certificate must be issued if requested at least eight days before the contract ends.

The employment certificate serves as an official record of the employment relationship, rather than a subjective recommendation, confirming:

• the employee’s entry date (including any trial period):
• the date on which the employment ended;
• the nature of the positions held;
• the periods during which those positions were occupied.

The certificate must not contain any negative or biased remarks. 

The employer may, at their discretion, issue a reference letter offering a more detailed assessment of the employee. Providing such a letter may also be part of the employer’s concessions in a settlement.

Background checks in recruitment

When recruiting in Luxembourg, it is important to be aware that the hiring process itself is not specifically regulated by labour law. However, established case law confirms that employers may request certain information from candidates, provided it is relevant to the position being offered and necessary to assess the candidate's suitability.

Traditionally, conducting formalised background checks has not been common practice in Luxembourg. However, this trend is evolving, with such checks becoming increasingly prevalent. It should be noted that, to date, the process is not specifically governed by specific and detailed legislation in Luxembourg.

Any type of employee screening to ensure the candidate's suitability for the position should be conducted prior to the acceptance of the employment offer as Luxembourg law does not provide for the possibility to condition the employment contract to a positive outcome of a future screening.

Can a new employer require a reference letter or other information?

Employers may ask candidates to present original documents or certified copies that are directly related to the job requirements—for example, reference letters or employment certificates as evidence of previous employment or professional qualifications, driving licences, or university diplomas. The scope of information requested must always remain proportionate to the responsibilities and nature of the role in question.

A careful balance must be struck between the employer's legitimate interest in verifying a candidate's qualifications and the candidate's right to privacy. Background checks should therefore be limited to information that is strictly necessary, directly connected to the job, and justified by the specific duties and working conditions. This principle is enshrined in the Law of 11 August 1982 on the protection of private life.

The recruitment process must also comply with anti-discrimination laws. Employers are prohibited from discriminating—directly or indirectly—on grounds such as origin, skin colour, race, religion, political opinions, beliefs, health, disability, gender, sexual orientation, or family situation. These protections are set out in the Labour Code (articles L.251-1 and following) and the Criminal Code (articles 454 and following).

Furthermore, all background checks must respect the provisions of the General Data Protection Regulation (GDPR), which has been applicable in Luxembourg since 25 May 2018. This means that the collection, processing, and storage of personal data during recruitment must be carried out lawfully and transparently.

Certain types of background checks—such as requests for criminal records or local credit checks—are subject to stricter legal requirements and are only permitted under specific circumstances. These checks are governed by additional regulations concerning how such sensitive information can be collected, processed, and retained.

Can a new employer contact previous employers?

In Luxembourg, nothing prohibits a prospective employer to contact a candidate's former employers, but certain rules must be followed and notably comply with the above. The candidate should be informed beforehand, and any information requested must be directly relevant to the job. Employers must respect privacy laws, including the GDPR, and previous employers should only share factual details that do not breach confidentiality undertakings or any former employee's rights.