- Luxembourg
- Practical Information
- Education and Training
- Health and Social Services
- Partners
(+352) 43 83 33
Outpass menu
> Settling in Luxembourg > Working > Dismissal
Dismissal
It is important to differentiate between two types of dismissal: “dismissal with notice” and “dismissal with immediate effect” (commonly called “dismissal for gross misconduct”).
Dismissal with notice
“Dismissal with notice” is understood as the decision by the employer to terminate the employment relationship with an employee after expiry of a period called “notice”. This notice period varies according to the employee’s length of service. During the notice period, the employee must continue to perform his or her work, unless the employer exempts him or her from such obligation. Several grounds may lead to dismissal with notice: the insufficient quality or quantity of the work provided by the employee, the employee’s behaviour or economic reasons (eg. when the company has financial difficulties).
The employer must however follow a certain procedure to carry out a dismissal. For the dismissal to be lawful, the employee must be notified in a written letter (registered post or hand delivered with signature of a confirmation of receipt). An employee who receives a dismissal letter has one month to ask his or her employer for the grounds of the dismissal. In a company employing over 150 employees, the employer must also invite the employee to an interview before making the decision to dismiss him or her.
Dismissed employees who have been in service for at least five years are entitled to a “departure allowance”, that is, a certain sum which is paid to them when the notice period ends and which varies according to their salary and length of service.
A dismissed employee who considers that his dismissal is unfair can bring his employer before an industrial tribunal. He or she has three months from the date of notification of the dismissal, or from receipt of the letter indicating the grounds for dismissal, to bring legal action. This period may be extended to one year if the dismissed employee sends his employer a request letter (see standard letters).
When an employee wishes to contest a dismissal, it is highly recommended to contact a lawyer or the trade union. For information: People with modest financial resources may receive legal aid if they call upon a lawyer.
Dismissal with immediate effect
“Dismissal with immediate effect” is understood as the employer’s decision to terminate the employment relationship with an employee who has committed serious misconduct. As its name indicates, this dismissal is effective immediately without the requirement for a notice period.
Gross misconduct is misconduct that makes it immediately and definitively impossible to maintain an employment relationship. The employer must pronounce the dismissal with immediate effect no later than one month after becoming aware of the fault. The employee must be notified of the dismissal in a written letter (registered post or hand delivered with signature of a confirmation of receipt). Furthermore, the explanatory letter must state precisely and in detail the misconduct of which the employee is accused. If this is not the case, the dismissal is unfair.
Following gross misconduct, the employer can initially also pronounce a forced suspension awaiting dismissal, that is, exempt the employee from being present at the workplace. It then has a period of eight days to send him or her the letter of dismissal with immediate effect.
In the event of dismissal with immediate effect, the dismissed employee does not receive the departure allowance. Moreover, her or she cannot receive unemployment benefit. The industrial tribunal can however issue a special authorisation to receive unemployment benefits provisionally if the dismissed employee intends to take action against the employer. This sample case is however subject to very specific conditions.
A dismissed employee who considers that his dismissal is unfair can bring his employer before an industrial tribunal. He or she has a period of three months from the date of notification of the dismissal to take action. This period may be extended to one year if the dismissed employee sends his employer a request letter (see standard letters).
When an employee wishes to contest a dismissal, it is highly recommended to contact a lawyer or the trade union. For information: people with modest financial resources may receive legal aid if they call upon a lawyer.
Translated information:
