What is a serious misconduct and how to dismiss an employee for that
In this guide, we explain what constitutes serious misconduct in the Grand Duchy and how to legally dismiss an employee for serious misconduct in the employment relationship.
Either the employer or the employee may terminate the employment contract immediately. In the event of serious misconduct, the party who has been the victim of the misconduct is considered to have suffered damage and has the right to take appropriate measures, and the party who has caused the damage must compensate for the damage.
Before terminating an employee, an employer must establish that the offense committed can be considered serious misconduct.
Serious misconduct is defined as any violation that makes it immediately impossible to continue employment.
There are a number of important points to consider when terminating an employee. If the employee is guilty of gross misconduct, the following principles apply:
The first and only reason: any offense that makes it immediately impossible to maintain the employment relationship. Examples of serious misconduct include theft, threats, and physical violence against the employer.
An employee is entitled to payment for unused vacation days at the time of termination
With the final paycheck, the employee must be paid in exchange for unused leave.
The employer has the right to claim reimbursement from the dismissed person for the cost of continuing education
Professional development expenses are reimbursable if the following conditions are met:
- Training courses (e.g. master's degree, MBA, etc.) were organized and included in the study plan;
- The employer has applied for co-financing of training courses;
- The expenses relate to the current year and the previous three years.
The refund amount may be:
- Up to 100% of current (conventionally called A1) and prior (A2) year expenditures;
- Up to 60% of costs in the year prior to year A2, conventionally referred to as A3;
- Up to 30% of costs in the year prior to the A3 year.
However, it is important to note that any amounts received by the employer for each fiscal year under the co-financing agreement, as well as the statutory allowance of 1,240 euros per fiscal year, must be deducted from these costs.
In order to avoid disputes and disagreements, the employer may specify the amounts to be reimbursed and the conditions for reimbursement of training expenses in the employment contract or in an attachment to the contract.
When the employer has decided to dismiss an employee, it sends a notice of dismissal. The employer is obliged to notify the employee of the dismissal and must do so in writing in one of two legal ways:
The letter must meet the following requirements:
- Clearly describe any serious misconduct of which the employee is accused;
- Write the text in a language the employee understands.
Sometimes, before dismissing an employee, the employer decides to suspend the employee with pay. In such a case, the employee is informed of the decision orally or in writing, and a notice of dismissal may follow at a later stage.
When deciding whether to suspend an employee with pay, the employer should keep in mind that in this scenario, dismissal is possible no earlier than the day after the suspension and no later than eight days after the suspension.
Frequently Asked Questions (FAQ)
What is serious misconduct in Luxembourg
How to dismiss an employee for serious misconduct in Luxembourg
Source: legilux.public.lu, guichet.public.lu
We took photos from these sources: Vitaly Gariev on Unsplash
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