Remote’s guide to employing in

Luxembourg
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Make employment in Luxembourg easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Luxembourg, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
  • Capital City

    Luxembourg City

  • Currency

    Euro (€, EUR)

  • Languages

    Luxembourgish, German, and French

  • Population size

    626,108

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
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Employment termination in Luxembourg

Termination process

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

Notice period

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

Severance pay

Without the appropriate termination notice, employees are entitled to receive a severance package equivalent to one month’s salary 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.