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

CSSF FAQ regarding the use of DLT in Tokenised Funds

On 2 October 2026, the CSSF published an FAQ on how Distributed Ledger Technology (DLT) may be used to issue, hold and transfer units or shares of Luxembourg investment funds. UCI administrators acting as registrar agent may keep the register of registered units on DLT, and for dematerialised units they…

IFLR1000 2027 – Renewed recognition of our expertise

Linari Law Firm has been recognised in the IFLR1000 2027 edition, marking its eleventh consecutive year in this leading guide to financial and corporate law firms. The firm is rated in four practice areas: Investment Funds, Banking, Capital Markets and M&A. This consistent recognition reflects the firm’s approach of close…

Team Building in Mallorca

From 2 to 5 October, the Linari Law Firm team travelled to Port Adriano for a team building weekend in Mallorca, joined by their partners. The programme combined wine tastings, harbour walks and long dinners exploring Mallorcan cuisine. As a boutique law firm, Linari sees its close-knit relationships as its…

New CSSF eDesk Notification Requirements for Redemption Suspensions (LMT Rules)

From 21 September 2026, the CSSF requires certain Luxembourg funds — UCIs, SIFs and SICARs governed by the amended Law of 17 December 2010 — to notify the activation and deactivation of redemption suspensions exclusively through the "LMT activation" module on the CSSF eDesk platform. The measure forms part of…

Luxembourg Business Register: Enforcement phase begins

The Luxembourg Business Register has entered a new enforcement phase targeting companies with incomplete or outdated information in the RCS or RBE. Non-compliance may become visible on public register extracts and can ultimately result in financial penalties and administrative strike-off. Companies should ensure that their annual accounts, registered office details…

A sovereign bond on DLT: Luxembourg sets its sights on a European first

On 16 September, Luxembourg Finance Minister Gilles Roth announced the country's intention to issue a sovereign bond on distributed ledger technology (DLT). The Minister framed it as a European first for a sovereign bond of benchmark size — and potentially a world first, depending on its final size, maturity, distribution…
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