Whether you expect it or not, redundancy is never good news. Stress, anxiety and questions can make you feel out of sorts. Nevertheless, redundancy must follow clearly defined rules: here are the steps and remedies for defending your rights effectively.

Types of dismissals

In Luxembourg, there are two types of dismissal: with or without notice, the latter being used only in cases of serious misconduct. The most common form of dismissal is with notice, for economic, organisational or behavioural reasons. This is what this article will focus on.

Severance and notice period

In all cases, you must be notified of redundancy in writing, either by hand-delivered letter or by recorded delivery. If your employer employs at least 150 people, he is obliged to invite you to a pre-redundancy interview, which you may attend with someone else. This interview is an opportunity for your employer to set out the proposed reasons for your dismissal, and for you to respond.

Next comes the letter of dismissal itself, which must state that you are being dismissed with notice. If your employer exempts you from serving your notice period, this will also be mentioned in the letter of dismissal.

The notice period begins on the 15th of the current month, if the letter of dismissal is sent before the 15th; on the 1st day of the following month, if the letter is sent between the 15th and the last day of the month.

If you have been with your employer for 5 years or more, your employer must pay you severance pay of between 1 month (5 years' seniority) and 12 months (over 30 years). You will find more details in the table below:

Companies with fewer than 20 employees may pay severance pay or extend your notice period. Your employer must state his choice in the letter of dismissal.

Request for motives

As your employer is not obliged to inform you of the reasons for your dismissal in the letter of dismissal, you have 1 month from the date of receipt of the letter of dismissal to request this. Please note that this request must be made by registered post. Your employer is then required to state precisely, within one month, the reason(s) for dismissal. If your employer fails to provide written reasons within one month, the dismissal is unfair and you may be entitled to damages.

Cross-border commuters

Under European regulations, it is your country of residence that pays your unemployment benefit. To claim your unemployment benefit in France, Germany or Belgium, you will need to ask your employer to complete the « Certificat de travail – Cessation des relations de travail  »form, which you will then provide to ADEM. ADEM will fill in the U1 form and forward it to the competent institution in your country of residence. This form summarises the periods of insurance and employment completed on Luxembourg territory and will enable you to obtain your unemployment benefit.

Recourse options

If you consider the dismissal unfair, you can take your case to the Employment Tribunal within 3 months of being notified. It is advisable to consult your trade union or a specialist lawyer to assess your chances of success. Dismissals that are unjustified, discriminatory or in breach of legal protection (pregnancy, illness, mandate as staff representative, etc.) may entitle you to damages, or even reinstatement in certain cases.

About ALEBA

ALEBA has been defending the rights of employees in Luxembourg for over 100 years. With a vision resolutely focused on social protection, ALEBA works tirelessly to improve working conditions and ensure lasting job security.