Dismissal in Luxembourg: procedures, benefits and notice

Losing your job is never an easy step, especially when you don't know what your rights or the obligations of your employer are. In Luxembourg, the legislation strictly regulates dismissal, whether with notice or for serious misconduct.. For each person concerned, it is important to know the rules to be respected, as well as the information to be provided or received, depending on the reason given.

‍

What is the notice period? What are the conditions for obtaining a severance package? What is the duration of the period to be respected before the implementation of the dismissal? And in the event of an unfair dismissal, what steps should you take to assert your rights?

‍

This guide helps you understand your rights. We will see the possible remedies, how notice works, as well as the consequences on your salary or your contract, depending on your seniority. Whether you are still working, recently dismissed, or simply looking for information, it will allow you to act clearly and on time.

‍

What you need to remember:

‍

• Dismissal in Luxembourg is governed by the Labor Code.
• The length of notice depends on the length of service of the employee
• Severance pay can be obtained under certain conditions
• In the event of unfair dismissal, it is possible to file a dispute

‍

The different types of dismissal in Luxembourg

‍

Dismissal with notice

‍

Dismissal with notice is the most common form in Luxembourg. It concerns the majority of terminations of permanent employment contracts (CDI). The employer terminates the contract while respecting a notice period, whose duration varies according to the length of service of the employee. During this period, the employee continues to carry out his activity or may, under conditions, be exempt from effective work.

‍

• The notice period generally begins upon receipt of the dismissal letter, or on the 1st day of the following month.
• The employee benefits from leave to search for work, paid and supervised by law.
• Written notification is mandatory, with an explanation of the reasons if the employee requests it.

‍

If the procedure is not followed, dismissal may be considered abusive. The employee can then assert his rights before the competent courts.

‍

It is therefore important to know the precise rules governing dismissal with notice, both for the employer and for the employee, in order to ensure fair treatment.

‍

Dismissal with immediate effect (serious misconduct)

‍

Dismissal with immediate effect is an exceptional measure, reserved for cases of serious misconduct committed by the employee or the employer. Here, no notice period is applied: the breakup is immediate and the contract ends as soon as the dismissal is notified.

‍

• It must be based on serious facts that make it impossible to continue the employment contract, even temporarily.
• The employer must invite the employee to a preliminary interview within a strict period of 8 days.

‍

Then, a reasoned registered letter must be sent within 8 days after the interview.

‍

A dismissal for serious misconduct rarely gives rise to a severance package.and nor unemployment benefits, with some exceptions. However, if the employee disputes the facts, he may file an appeal before the labour court.

‍

Rupture in CDI or CDD: differences in treatment

‍

The legal treatment of a dismissal depends on the type of employment contract: CDI or CDD. The applicable rules are not the same, especially in terms of notice, compensation and the possibility of early termination.

‍

On a permanent contract, the employer can dismiss with or without notice depending on the case (classic dismissal or for serious misconduct). An employee may also resign at any time, subject to compliance with the notice period.

‍

On a fixed-term contract, The anticipated breakup is only possible in certain specific situations: agreement of both parties, serious misconduct, force majeure, or permanent employment. Apart from these cases, an employer who terminates a fixed-term contract in an abusive manner is liable to pay the employee's compensation for the remaining duration of the contract.

‍

Here is a summary table:

‍

‍

The dismissal procedure explained

‍

Preliminary interview

‍

Before proceeding with a dismissal, in some cases, the employer must invite the employee to a preliminary interview. This step becomes mandatory when the company has more than 150 employees.

‍

The objective is to inform the employee of the planned decision and to give him the opportunity to explain himself. The invitation must be sent in writing (often by registered letter) and specify:

• The purpose of the leave (breach of contract)
• Date, time and location of the interview

‍

The employee can be accompanied by a person of his choice. The employer is not required to give reasons for his decision during the interview, but he must respect the procedure, otherwise the dismissal will be unfair.

‍

Even below the threshold of 150 employees, this interview is still recommended to respect the rights of the employee and to avoid any subsequent dispute.

Notification in writing

‍

The notification of dismissal must always be formalized in writing. This requirement applies to all types of employment contracts, whether it is a dismissal with notice or a dismissal with immediate effect.

‍

The dismissal letter must:

• Be written in a language understood by the employee
• Specify the duration of the notice, the end date of the contract
• Indicate the delivery of the work certificate

‍

In case of serious misconduct, it must be sent within 8 days after the prior interview. Shipment is generally made by registered letter with acknowledgement of receipt.

‍

A formal error or incomplete content may result in the invalidity of the procedure. The employee then has the option of contesting the validity of the dismissal before the competent court.

Communication of the reasons for dismissal

‍

In Luxembourg, the employer is not obliged to give immediate reasons for a dismissal, unless the employee makes a written request within one month of receiving the notification.

‍

The employer must then respond within one month following the request. This response must contain the real and precise reasons for the breach of contract.

‍

The aim is to:

• Allow the employee to know the exact reasons for his dismissal;
• Verify whether it is well-founded or abusive;
• Prepare for a possible legal appeal.

‍

A dismissal without valid reasons or without a response from the employer may be called into question and result in compensation.

This step is therefore important to protect the rights of the employee and to ensure fair treatment.

‍

Role of the Economic Committee

‍

The Economic Committee plays an important role in collective or economic redundancy procedures in Luxembourg. It intervenes when the company encounters difficulties related to employment, the economic situation, or restructuring.

‍

An employer who plans to reorganize his activity with consequences on employment must submit a form and a reasoned file to the Committee. It is composed of representatives of the government, trade unions, and employers.

‍

The committee assesses:

• The economic situation of the company,
• The justifiable nature of the dismissals,
• The accompanying measures proposed.
  
  

His opinion is advisory, but it is a condition for the granting of certain financial aid or social arrangements. The employee can therefore indirectly benefit from this body if an alternative solution is found to avoid or limit dismissals.

‍

Your rights as an employee in Luxembourg

‍

Protection against dismissal

‍

The Luxembourg Labour Code provides for cases where an employee benefits from reinforced protection against dismissal, in order to secure his personal or professional situation.

‍

Employee with incapacity for work

‍

An employee who is sick cannot be fired for the duration of his incapacity for work, provided that he presents a valid medical certificate sent on time. This protection lasts as long as possible 26 consecutive weeks.

‍

The staff representative

‍

Members of the staff delegation enjoy special protection. They can only be dismissed with the prior authorization of the Labour Inspectorate (ITM), even in the event of serious misconduct. This protection also applies to election candidates.

‍

The pregnant woman

‍

A pregnant employee is protected against dismissal, from the moment the pregnancy is known to the employer until 12 weeks after giving birth. This protection also covers the period of maternity leave.

‍

Employee on parental leave

‍

During parental leave, the employer cannot proceed with a dismissal. This period is considered as a suspension of the contract, and any breach during this period is automatically void.

‍

These protections allow employees in sensitive situations to benefit from a clear legal framework, and to act in the event of unfair dismissal.

‍

The calculation of the notice and its execution

‍

The length of notice varies according to the length of service of the employee. It is set by the Labor Code in a strict legal framework for contracts of indefinite duration (CDI). An employer who wants to fire a worker must respect these deadlines.

• Under 5 years: 2 months
• Between 5 and 10 years: 4 months
• Over 10 years: 6 months

‍

The starting point for the notice generally corresponds to the 1st day of the month following the receipt of the dismissal letter. During this notice period, the employee remains under contract and continues to receive his salary, unless he is exempt from work.

The employer may in fact notify an exemption from work, but must specify the clear and unequivocal reasons for doing so. At the same time, The employee is entitled to leave for job search, which is 6 paid working days, to be distributed freely over the entire period of notice.

‍

These rights apply to all employees, including cross-border workers, and offer time to adapt to find a new job in more serene conditions.

‍

Severance benefits

‍

An employee dismissed with notice may qualify for Severance pay, provided that they have sufficient seniority within the company. This compensation is intended to compensate for the breach of contract within a protective framework defined by law.

‍

Here are the minimum amounts according to the number of years of service:

• 5 to 10 years: 1 month of gross salary
• 10 to 15 years: 2 months
• 5 to 20 years: 3 months
• 20 to 25 years: 6 months
• 25 to 30 years: 9 months
• Over 30 years: 12 months

‍

In companies with less than 20 employees, internal commissions can adapt the payment methods, but the rights remain the same. This benefit is not taxable in most cases, provided that the legal thresholds are respected.

‍

Any refusal or omission of payment may be the subject of a complaint by the employee.. He may also be summoned before the competent authorities to assert his rights, whether he is a resident or a cross-border worker.

‍

What to do in case of dismissal in Luxembourg?

‍

A dismissal, even if it is legally regulated, can cause many questions, especially if you are a cross-border worker or if the professional relationship has been stable for several years. Solutions exist for defend your interests and assert your rights to benefits. Here is how to react in concrete terms:

‍

Your first actions to take

‍

As soon as the dismissal is announced, it is essential to adopt a structured approach. Whether you are a resident or a cross-border worker, certain steps must be followed without delay:

• A careful reading of the dismissal letter makes it possible to verify the date, the duration of the notice, the reasons given, and the rights related to the compensation or the work certificate;
• The written request for reasons for dismissal, when they are not provided, is an employee's right to exercise within one month;
• A contract with ADEM ensures the opening of unemployment rights and access to the first benefits;
• A rigorous classification of all employment-related documents (contract, pay slips, email exchanges) provides a solid basis for any complaint.

‍

A quick reaction makes it possible to avoid mistakes, especially in the hypotheses of questionable dismissal. Even in the event of an emotional shock, maintaining an active posture is a decisive advantage in asserting one's rights within a legal framework.

‍

How can an unjustified dismissal be contested?

‍

Dismissal may be unjustified for various reasons The employee then has the right to initiate a dispute process:

• Precise data relating to the contract (duration, position held, history of exchanges) make it possible to lay the foundations for a solid remedy;
• The seriousness of the breakup may be questioned if no prior interview has taken place or if the notice is absent or inconsistent;
• A well-structured dispute letter, mentioning the facts and supporting documents, makes it possible to formalize the employee's position.

‍

Referral to the labour court remains the key legal step. The judge decides whether the breakup was legitimate, and may award compensation if the dismissal is deemed unfair.

‍

Even as a cross-border worker, an employee can contesting a dismissal if his contract depends on Luxembourg law. It is the function exercised in Luxembourg that determines the applicable legislation, not the national residence.

‍

A well-prepared claim, supported by the right documents, makes all the difference in the event of a dispute.

‍

Who can you contact for support?

‍

Getting fired can quickly become complex, especially if the information is unclear or if the process seems intimidating. Fortunately, several structures can support the employee in this situation:

• The labour inspectorate (ITM) is a first reliable source of information, in particular on compliance with the procedure;
• Trade unions offer legal support and assist employees in their procedures, including before the competent courts;
• Some professional commissions or specialized chambers guide employees according to their function or sector of activity.

‍

Additional support can also come from:

• A lawyer specialized in employment law, in particular in the event of litigation or unjustified termination;
• From ADEM, which guides job seekers, including cross-border workers, to applicable aids and available offers.

‍

Social benefit or compensation schemes exist, depending on the case. It is therefore important to be well informed and not to be left alone in front of the procedure.

‍

A dismissal always raises questions : reasons expressed, length of work, right to compensation, access to unemployment... Luxembourg law offers a clear framework, but it is still necessary to understand the rules and the steps to be followed.

‍

A poorly initiated breakup can backfire on the employer. It's not just what's said that matters, but how and when it's done. In case of doubt, it is best to find out and check what the contract and the law provide. Above all, do not hesitate to contact the right people.

‍

As a resident or cross-border employee, you have the opportunity to be supported at each stage and to bounce back in good conditions.

‍

Are you already looking for a new opportunity? Consult the job offers in Luxembourg.

‍

Frequently asked questions

‍

Is dismissal without cause legal in Luxembourg?

Yes, but only if the employee does not ask for the justification. If requested in writing within a month, the employer is obliged to mention the reasons for the dismissal.

‍

What is the length of notice in case of dismissal in Luxembourg?

It varies according to seniority: 2 months (less than 5 years), 4 months (between 5 and 10 years), 6 months (over 10 years).

‍

Are you entitled to unemployment after a dismissal for serious misconduct?

Not automatically. ADEM may refuse the right to unemployment benefits if the employee's behaviour justifies the exclusion.

‍