LINARI LAW

Sick leave and immediate dismissal: a clear line from the Court of Appeal

The Luxembourg Court of Appeal ruled on May 22, 2025 in a case concerning an immediate dismissal during an employee’s sick leave. (Arrêt N° 61/25, Numéro CAL-2024-00359 du role.)

The decision provides important clarification on (i) the scope of protection against dismissal during medical incapacity, (ii) the formal requirements for such protection, and (iii) the legal characterization of fault justifying termination

The case involved an employee who had been on certified medical leave since April 2022.

Although she duly submitted multiple medical certificates for prior absences, she failed to ensure the timely reception of a new certificate extending her incapacity as of July 25, 2022.

The certificate was only received by the employer on July 28, i.e., on the fourth day of the extension, whereas Article L.121-6 of the Labour Code requires that the employer be in possession of such a document within three days.

The Court held that the date of receipt—not the date of sending—is decisive and that, as a result, the employee was not protected against dismissal due to her illness.

However, the Court found that the employer was not justified in terminating the employment contract with immediate effect.

Although the employee’s failure to meet the legal deadline for transmitting the medical certificate constituted a fault, it did not rise to the level of “grave misconduct” (“faute grave”) necessary for immediate dismissal under Article L.124-10.

The Court emphasized that absence due to illness—once documented—is not inherently wrongful and that the employee had otherwise consistently complied with her prior notice obligations. Therefore, the dismissal was ruled abusive.

The Court awarded the employee compensation in the form of a notice period indemnity equivalent to two months’ salary and moral damages of €1,500. However, it rejected the claim for material damages, as the employee failed to demonstrate active job-seeking efforts or a direct causal link between the dismissal and her financial loss beyond the pre-dismissal period already covered by the notice indemnity.

Feel free to reach out to our team to discuss your projects or to request more information about our services.

PREVIOUS NEXT

Related posts

Browse All

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.

Luxembourg holding structures and effective place of management: French courts confirm substance over form

In a decision dated 8 January 2026, the Versailles Administrative Court of Appeal upheld the French tax authorities' position that a Luxembourg company, despite having a registered office in Luxembourg, was subject to French corporate tax and VAT due to its effective place of management being in France. The company,…

Sandrine Deldemme-Egloff has been promoted to Counsel at Linari Law Firm

Linari Law Firm has promoted Sandrine Deldemme-Egloff to Counsel, recognizing her legal expertise and dedication. With over 10 years of experience, she specializes in business, corporate, and employment law, as well as dispute resolution and arbitration. Sandrine joined the firm in 2021 and has made significant contributions, handling complex matters…

Major tax reform: Bill introducing a single tax class ‘U’ officially filed

Luxembourg has officially launched a major personal tax reform with the filing of Bill 8676 introducing a single Tax Class U. The reform replaces existing tax classes while guaranteeing that no taxpayer is worse off, supported by a long transitional regime for current joint taxation households. Automatic transfers, opt-in flexibility,…
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