Luxembourg labor law: Termination of employment guide

February 3, 2022 |


If you work in Luxembourg, here is a guide to assist you if you need to terminate your employment contract.

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The Labor Code, which took effect in September 2006, consolidated all existing employment regulations in Luxembourg. A thorough guide to terminating employment contracts in Luxembourg is available here.

Luxembourg dismissal

The employer may terminate the employment contract for a legitimate and serious reason related to the employee’s ability or behavior, or due to the company’s, establishment’s, or department’s operational necessities.

If the organization employs more than 150 people, the employer must first call the employee in for a meeting. After that, the company must give a written notice of dismissal by registered mail. Finally, if the employee wants it, it must provide the grounds for the dismissal. Employers must submit it via registered mail within one month of receiving notice.

After providing notice, the working connection terminates after a notice period of two to six months, depending on the duration of service of the employee.

In the event of extreme wrongdoing, an employer may also terminate a contract immediately. The event in question must be explicitly stated in the notification of dismissal or redundancy in such situations.

Luxembourg resignation

An employee with a permanent employment contract has the option to terminate the relationship at any time. To do so, he or she needs to write a registered letter cancelling the contract. The signature of the employer on a copy of the letter of resignation serves as an acknowledgement of receipt of the resignation notice.

After the employee has given notice of resignation, the working relationship will conclude at the conclusion of the notice period, which can range from one to three months depending on the employee’s length of service (half of this period for dismissal).

During the trial time, you can withdraw.

The employment contract can include a trial period of two weeks to six months. During this time, any party (employer/employee) may withdraw from the contract without providing reasonable cause beyond the two-week trial period (for which severe grounds must exist), notifying the other party by registered mail.

When the trial period is described in weeks, the amount of notice required is one day every week of the trial period, and four days per month when the trial period is described in months. The notice period is 15 to 24 days long.

A fixed-term contract comes to an end

When a fixed-term contract expires, the working relationship ends automatically.

Expiration date is set automatically

The employee’s employment contract ends when they are no longer eligible for a sickness benefit, which is after 52 weeks of incapacity for work paid by the Caisse Nationale de Santé (National Sickness Insurance Fund) over a 104-week reference period.

Defend against dismissal

Sick employees who comply with their requirements of informing their employer for a period of 26 weeks are protected by the Labor Code from being fired. After that time of protection has expired, the employer has the right to fire the employee for legitimate, valid, and severe grounds.


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