Business termination

How to properly dismiss an employee with notice

In this guide, we will explain how and when to dismiss employees under Grand Duchy law, when the immediate dismissal rule applies and when the procedure must be carried out with prior notice, as well as which employees are entitled to severance pay.

Last time updated

In Luxembourg, an employer can dismiss a person immediately for serious misconduct, or gradually and with notice in all other cases. The second scenario is more common and less severe than immediate dismissal for serious offences, so in this guide we will look specifically at cases of dismissal with notice.

Use filters and customize your guide to suit you
Each choice displays a new version of the guide
Select the number of employees in the company:
less than 15 employees
from 15 to 149 employees
150 employees and more
Prepare for the end of an employment relationship
Give notice of termination
Prepare for the end of an employment relationship
Give notice of termination

Review the employee's work contract, the terms of the probationary period, the specified notice period for terminating the employment relationship, and other termination provisions.

Key terms relating to dismissal
Possible reasons for dismissal
Dismissal on trial period

After the interview, the employer has the right to decide whether to dismiss the employee or not. If it is decided to proceed with the dismissal procedure, the employer must send notices.

For companies with less than 15 employees, it is sufficient to send a notice of dismissal only to the employee, even if it is for economic reasons. Companies with 15 or more employees must also notify the Economic Committee of the Ministry of the Economy.

The employer must notify the employee of the termination, and must do so in writing in one of two legal ways:

The letter must meet the following requirements

  • State that the employee is being terminated with notice;
  • Outline the notice period to which the employee is entitled based on length of service;
  • Indicate the period of release from employment, if applicable to this termination;
  • Send the notice to the employee's home address. If the employee changes his or her address during employment without notifying the employer, and the letter is received at the original address, the notice will be considered valid.

The notice of termination letter should be written in language that the employee can understand.

Example of a notice of termination of employment
Example of a notice of termination of employment

The employer is not obliged to state the reasons for dismissal in the notice, but the employee may submit a request for clarification. To do so, the employee must submit the request in writing:

The employer must respond to the employee in accordance with the following requirements if the employer receives such a request:

    When notifying an employee, there are a few important things to know:

    Start of notice period
    Length of the notice period
    Release from work
    Time off to look for another job and unused vacation leave
    Severance pay

    Handle the termination of an employee's employment with due professionalism, taking into account the impact on the employee's future career and well-being. Keep all important documents related to the process, including meeting minutes, letters, correspondence, etc. In this way, by complying with legal requirements, you will be able to properly terminate an employee in Luxembourg, minimize legal risks and ensure the transparency of the process for all parties involved.


    Frequently Asked Questions (FAQ)

    How to give notice to an employee in Luxembourg

    What is the notice period in Luxembourg

    Who is entitled to severance pay in Luxembourg

    Send feedback

    We took photos from these sources: The Jopwell Collection для Unsplash

    Authors: Maria, Kadriia
    Was this article helpful?
    Very helpful!
    I didn’t get it.
    This is outdated.