Luxembourg: Termination of employment

Updating authors: Patrick Ries, Julie Erbrech and Ambre Riley, Loyens & Loeff Luxembourg

Original author: Arendt & Medernach

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Summary

• Employment contracts may terminate in a variety of ways, including dismissal and resignation, with notice or, in some circumstances, without notice. (See General)
• Except in cases of summary termination for "grave reasons", employers and employees must observe statutory notice periods when terminating an employment contract. (See Notice periods)
• The employer or the employee may terminate the employment contract without notice on the grounds of "grave reasons" arising from acts or misconduct by the other party that make the continuation of the employment relationship immediately and definitively impossible. (See Immediate termination for grave reasons)
• A dismissal is potentially fair if it is based on "real and serious" reasons related to the operational needs of the undertaking, establishment or department concerned. (See Redundancy)
• When an employee reaches the age of 65, and is entitled to receive a state old-age pension, the employment contract terminates automatically by operation of the law. (See Retirement)
• Employees benefit from special protection from dismissal in certain situations and at certain times. (See Special protection from dismissal)
• Employers must observe certain statutory procedures before dismissing employees. (See Termination procedures)
• An employee on an open-ended contract who is dismissed after at least five years' continuous service with the employer is generally entitled to a severance payment. (See Severance payments)
• When employment ends, the employer must, on request, provide the employee with a certificate stating the start and end dates of employment, and the nature of the job performed. (See Certificate of employment)
• A dismissal is considered unfair if it is not based on "real and serious" reasons related to the employee's aptitude or conduct, or to the organisation's operational need, while dismissal in certain circumstances or for certain reasons is automatically unfair or deemed null and void. (See Unfair dismissal)