Know your rights: Collective redundancy:
As rumors circulate that one of Luxembourg’s largest employers may proceed with a wave of layoffs, employees need to understand the protections and steps available under Luxembourg law.
A collective dismissal happens if the employer plans to terminate:
- at least 7 employees over 30 days, or
- at least 15 employees over 90 days,
and for reasons not related to the individual performance or conduct of employees (e.g., economic reasons, restructuring, reorganization, or liquidation).
The employer must inform ADEM (the Employment Development Agency) and, when applicable, the employee representatives or the employees themselves.
A social plan is negotiated to mitigate the impact — this may include redeployment, retraining, or compensation measures.
The social plan is implemented according to the negotiated terms.
In some cases, the employer can request tax exemptions for voluntary departure or redundancy indemnities.
In companies with staff delegates, the process is carried out with the delegation.
In companies with fewer than 15 employees, negotiations occur directly between employer and employees.
If a company is legally required to have a staff delegation does not yet have one, elections must be held before any collective redundancy procedure can start.
Your rights as an employee:
- Right to information: You must be informed about the reasons for the redundancy, the number of employees affected, and the timeline.
- Right to consultation: Employees have a right to be represented in negotiations through staff delegates or directly in small companies (<15 employees).
- Right to a social plan: Measures to reduce the impact, such as financial compensation, redeployment, or training, must be offered.
- Right to compensation and notice: You are entitled to statutory notice periods and minimum severance, with possible additional benefits in the social plan.
- Right to contest: If procedures are not respected, you can challenge the dismissal before the Luxembourg labor court.
- Right to individual consideration: Even in collective processes, your seniority, contract, and personal situation (e.g., residence permit) are taken into account.
- Right to support and transition: You can access outplacement, retraining, and other measures provided in the social plan.
Linari Law Firm is of course available should you need any assistance regarding labour law, dispute resolution and more specifically if you are concerned by a collective redundancy.
Artwork by Rosc-Art
