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ARTICLE · 21 APRIL 2025

Employment And Labour Law Comparative Guide

Yes, an employer does need a reason to lawfully terminate an employment relationship, unless the employer terminates the relationship during a validly agreed trial period (in which case no specific reason is required).

LuxembourgEmployment and HR

1. Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?

Yes, an employer does need a reason to lawfully terminate an employment relationship, unless the employer terminates the relationship during a validly agreed trial period (in which case no specific reason is required).

A dismissal with notice requires a reason that is based either on the considered employee's personal behaviour or performances, or on so-called economic reasons (e.g., restructuration or strategic decision to abolish the employee's position).

A dismissal with immediate effect requires a serious misconduct of the employee, which must make it immediately and definitely impossible to pursue the employment relationship.

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