Easily manage employment in Luxembourg

Employee contracts can be terminated if a reasonable just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences. That aside, notice should be provided in advance – provided both parties agree to it.

The required notice period in Luxembourg also depends on the length of employment:

• Less than 5 years of employment: 2 months’ notice
• 5-10 years of employment: 4 months’ notice
• 10+ years of employment: 6 months’ notice

Without the appropriate termination notice, employees are entitled to receive a severance package equivalent to one month’s pay multiplied by the number of years the worker has stayed with the employer, up to 25 years.

• Less than 5 years-: No severance pay
• 5-10 years: 4 months’ severance pay or the notice period can be extended by 5 months for employers with less than 20 employees
• 10-15 years: 2 months’ severance pay or the notice period can be extended by 8 months for employees with less than 20 employees
• 15-20 years: 3 months’ severance pay or the notice period can be extended by 9 months for employers with less than 20 employees
• 20-25 years: 6 months’ severance pay or the notice period can be extended by 12 months for employers with less than 20 employees
• 25-30 years: 9 months’ severance pay or the notice period can be extended by 15 months
• 30+ years: 12 months’ severance pay or the notice period can be extended by 18 months.