Business termination

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.

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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.

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Make sure that the violation that has occurred is a serious offense
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Make sure that the violation that has occurred is a serious offense
Send a notice of termination

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.

In assessing the level of misconduct, the employer must take into account the total of the factors that affect the professional behavior of the employee:
Education level (general, higher, etc.)
Professional experience
Social status
Other relevant factors
Key terms and conditions for termination of employment
Possible reasons for dismissal
Possible compensation of the parties

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:

By certified mail, return receipt requested
By personally delivering the letter with the employee's signature

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

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We took photos from these sources: Vitaly Gariev on Unsplash

Authors: Maria, Kadriia
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