Gross misconduct: no notice, no severance — and, in principle, no unemployment benefit

Updated July 2026

📄 Can I be dismissed without notice in Luxembourg?

With conditions

Quick answer

Yes, but only for gross misconduct — conduct that makes continuing the employment relationship "definitively and immediately impossible". The employer has only one month from the day they learned of it to invoke it; after that, it is time-barred. Here sits the most expensive myth in Luxembourg employment law: "I'll draw unemployment benefit while I fight it." Wrong — dismissal with immediate effect for gross misconduct in principle removes the right to full unemployment benefit. You must sue in the labour court, then apply in summary proceedings for compensation that is merely provisional — and repay every cent to the Employment Fund if you lose on the merits.

📋 The rules

Outside gross misconduct, notice follows length of service: under 5 years = 2 months; 5 to 10 years = 4 months; 10 years or more = 6 months. It starts on the 15th of the month if the letter goes out before the 15th, otherwise on the 1st of the following month.
Severance pay: owed only from 5 years of service — 1 month (5-10 years), 2 months (10-15), 3 months (15-20), 6 months (20-25), 9 months (25-30), 12 months (30 years and over). It is neither taxable nor subject to social contributions.
Gross misconduct: no severance pay, no notice, no compensation in lieu. Only untaken leave and the time-savings account balance remain due.
One-month cut-off from the day the employer learns of the facts (suspended if the employee falls ill; set aside where criminal proceedings begin within the month). In companies with 150 employees or more: a prior interview is mandatory, with notification no earlier than the next day and no later than 8 days after.
Probation period: it must be in writing by the start date, and no termination is possible during the first 2 weeks except for gross misconduct. Thereafter fixed notice applies (3 days for a 3-week trial, 15 days for 2-3 months, 1 month for 8-12 months). A 12-month probation is only lawful if gross monthly pay is at least €5,318.41.

🔓 Exceptions

Staff delegates (full members and substitutes), equality delegates and health and safety delegates: dismissal is VOID throughout the 5-year mandate, for 6 months afterwards, and for 3 months before elections once a candidacy is filed. A prior suspension is mandatory.
Companies with fewer than 20 employees may elect, in the dismissal letter itself, not to pay severance and to extend the notice period instead — up to 18 months for 30 years of service.
Incapacity for work: protection against dismissal for 26 weeks. During probation, illness extends the trial by the same duration, capped at one month. In case of pregnancy, no termination is possible between delivery of the certificate and the end of the protection period.

⚠️ Penalties & fines

For the employer, a dismissal held to be unfair means damages set by the labour court plus severance pay owed retroactively; skipping the prior interview in a company of 150 or more costs up to one month's salary for formal irregularity. For the employee the hidden bill is brutal: gross misconduct closes the door at ADEM, forfeits severance worth up to 12 months' salary, and exposes you to repaying continuing-training costs (100% of the current and previous financial year, 60% of the second, 30% of the third).

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Do I get unemployment benefit after dismissal for gross misconduct?

In principle no: dismissal with immediate effect removes the right to full unemployment benefit. You can obtain provisional compensation in summary proceedings, but you must repay it all if you lose on the merits.

How long do I have to challenge a dismissal in Luxembourg?

You have 3 months to bring a claim before the labour court. A written complaint to your employer interrupts that period and opens a fresh one of a full year — a simple reflex that rescues many cases.

Are damages capped at 6 months' salary?

Several private legal websites say so, but no official source confirms any statutory cap. It is the labour court that freely assesses the loss suffered, with no published scale to rely on.

Can my employer invoke misconduct from six months ago?

Not normally: they have one month from the day they became aware of the facts. Old misconduct can only be raised in support of fresh misconduct, or where criminal proceedings began within that month.

Do I also lose my untaken leave for gross misconduct?

No: untaken leave and the time-savings account balance remain due even in the event of dismissal for gross misconduct. They are the only sums that survive this kind of termination.

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