LINARI LAW

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

PREVIOUS NEXT

Related posts

Browse All

Luxembourg Parliament Adopts Bill No. 8628 Implementing AIFMD II

Luxembourg Parliament has adopted Bill No. 8628, transposing EU Directive 2024/927 (AIFMD II) into national law, effective 16 April 2026. The update allows AIFs to originate loans, strengthens liquidity management, and tightens delegation and transparency requirements for AIFMs. It also improves cross-border marketing, supervisory cooperation, and introduces a depository passport…

Luxembourg 2026: Regulatory Acceleration, a business opportunity

Luxembourg’s 2026 regulatory landscape is accelerating, driven by Pillar Two, AIFMD II, ELTIF 2.0, MiCA and company law reform. The shift reflects a broader EU move toward governance-driven supervision, increased transparency and substance requirements. For multinational groups and fund structures, this means minimum tax monitoring, enhanced reporting and stronger board…

CSSF Circular 25/901: reinforced guidance for Luxembourg funds — and a benchmark for RAIFs

CSSF Circular 25/901, effective 19 December 2025, consolidates and updates prudential guidance for SIFs, SICARs and Part II UCIs in Luxembourg. It introduces clearer standards on risk-spreading, borrowing limits, ramp-up periods and look-through requirements, aligned with investor profiles. Although RAIFs are not directly in scope, the Circular is expected to…

CSSF updates its FAQ on Crypto-Assets for Undertakings for Collective Investment

The CSSF has published Version 7 of its FAQ on Crypto-Assets for Undertakings for Collective Investment following the entry into force of MiCAR. The update clarifies how UCITS and AIFs may obtain crypto-asset exposure, including NAV limits, governance, risk management, and disclosure requirements. It introduces enhanced authorisation requirements for AIFMs…

CARRIED INTEREST OVERHAUL (Luxembourg)

Luxembourg has introduced a new carried interest regime effective 1 January 2026, providing clarity and preferential taxation for fund managers. Contractual carried interest is taxed at a reduced rate, while equity-linked carry can be fully exempt under certain conditions. Eligibility extends to employees, directors, partners, and advisors, with deal-by-deal carry…

Career opportunity: WE ARE HIRING!

We are currently seeking a administrative assistant to join our team.
Browse All

A LEGACY OF LAW. A FUTURE OF INNOVATION.
25 years of legal excellence – the journey continues.

Contact Info

+352 27 11 60 10

UP