If you’re working in Luxembourg, here’s a guide to help you if you need to end an employment contract in Luxembourg.
The Labour Code, which came into effect in September 2006, unified all Luxembourg’s previous employment legislation. Here’s a comprehensive guide to ending employment contracts in Luxembourg.
Dismissal in Luxembourg
The employer may end the employment contract for a genuine and serious reason linked to the worker’s aptitude or behaviour or due to the operational needs of the company, establishment or department.
If the company has more than 150 employees, the employee must be called in for a discussion prior to dismissal. The company must then send written notice of dismissal by registered post and, finally, it must give the reasons for dismissal if the employee so requests by registered letter no later than one month after being given notice.
Once notice has been given, the working relationship will cease at the end of the notice period of between two and six months, depending on the employee’s length of service: (five years or less: two months’ notice; five to 10 years: four months’ notice; 10 years or more: six months’ notice).
The employee may also be dismissed immediately in the event of serious misconduct, i.e., ‘any event or offence that makes it immediately and definitively impossible to maintain the working relationship’. In such cases, the notice of dismissal or redundancy must clearly state the event in question.
Resignation in Luxembourg
Under a permanent employment contract, the employee is free to end the working relationship. To do so, s/he should send a letter terminating the contract by registered post. The employer’s signature on the copy of the letter of resignation will also act as acknowledgement of receipt of the notice of resignation.
Once notice of resignation has been given, the working relationship will cease at the end of the notice period of between one and three months, depending on the employee’s length of service (half of this period for dismissal).
An employee may, like the employer, withdraw from the employment contract without giving notice should there be serious grounds for doing so (such as non-payment of wages).
Withdrawal during the trial period
A trial period of between two weeks and six months can be included in the employment contract. During this period, each of the parties (employer/employee) may withdraw from the contract, without providing just cause beyond the minimum trial period of two weeks (for which there must be serious grounds), notifying the other party by registered post.
The amount of notice that must be given is one day per week of the trial period when the latter is described in weeks, and four days per month when it is described in months. The notice period is between 15 and 24 days.
End of a fixed-term contract
The working relationship ends automatically at the end of a fixed-term contract. A fixed-term contract (CDD) may only be terminated before its expiry on serious grounds.
The employee’s work contract expires on the date that (s)he is no longer entitled to sickness benefit granted pursuant to the Social Security code, i.e., after 52 weeks’ incapacity for work paid by the Caisse Nationale de Santé (National Sickness Insurance Fund), during a reference period of 104 weeks.
Protection against dismissal
The Labour Code provides protection against dismissal of sick employees who have fulfilled their obligations to inform their employer during a consecutive period of 26 weeks. Beyond that period of protection, the employer may dismiss the employee for genuine, real and serious reasons.