Termination

Terminating employment, notice periods, termination payments and rights to references.

Luxembourg :: Protected employees

An employee is protected against summary dismissal (licenciement avec effet immédiat) and dismissal with notice (licenciement avec préavis), even for gross misconduct, for the duration of sick leave, provided they informed the employer of the illness on the very first day of absence, and provided the employee presents a medical certificate within three days of their absence …

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Luxembourg :: Unfair dismissal

An employee who believes that their dismissal has been unlawful or that their employer has not followed correct procedures may apply to a court with a claim for unfair dismissal …

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Luxembourg :: Discipline and termination

Disciplinary Action Employers should ensure that employees are given a reasonable opportunity to state their case when a disciplinary meeting takes place …

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Luxembourg :: Severance pay

A dismissed employee, except in the case of gross misconduct, is entitled to a severance allowance if they have at least five years’ service within the organisation: Less than 5 years:  No severance payment 5 to 9 years:  1 month’s gross salary 10 to 14 years:  2 months’ gross salary 15 to 19 years:  3 months’ gross salary 20 to 24 years:  6 months’ gross salary 25 to 29 years:  9 months’ gross salary 30 years or more:  12 months’ gross salary In order not to make a severance payment, an organisation employing less than 20 workers can inform the employee in the dismissal letter that the severance payment is replaced by an extension of the notice period: Length of service:  Extension of the notice period to: 5 years: 5 months 10 years:  8 months 15 years:  9 months 20 years: 12 months 25 years: 15 months 30 years:  18 months Article 115-9 LIR: The tax-free limit for severance payments (including those agreed through a collective agreement) and compensation for abusive breach of an employment contract are subject to tax-free limits equal to twelve times the minimum salary for non-qualified wage earners …

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Luxembourg :: Notice periods

The minimum statutory notice period is two months for less than five years’ service, four months for five to ten years’ service and six months when the service period exceeds ten years …

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Luxembourg :: Collective redundancy

A dismissal is deemed to be collective, and therefore subject to prior consultation with employee representatives, if 7 or more employees are to be dismissed over a period of 30 days, or if 15 or more are to be dismissed over a period of 90 days …

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