300 people in Luxembourg could be out of work in the near future

On 12 February 2025, the OGBL (Luxembourg's independent trade union) held an emergency meeting with the management of Protection Unit, after it was announced that the Luxembourg branch would cease operations.

The security firm, which employs more than 300 people, said on 5 February that it was applying to reorganise the business through a court-supervised asset transfer. The procedure is provided for in the law of 7 August 2023, which aims to preserve companies and modernise bankruptcy rules.

According to internal analyses, the Luxembourg Protection Unit was unprofitable and there was no prospect of retaining it. Management considered that the structural problems did not allow it to continue operations.

At the meeting, OGBL emphasised that workplace protection must be a priority and all company handover rules must be strictly enforced. This means that employees' rights and their current working conditions must be preserved.

In addition, the union secured an assurance that all workers would be paid in full for the transition period.

During the reorganisation process, OGBL promises to monitor the transparency of asset transfer to ensure maximum protection of labour rights.

The outcome of the Protection Unit case will be an important precedent in the application of the new bankruptcy law, which should protect employees and prevent mass layoffs when companies are in financial trouble.