European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Art.L.166-1 Court of Appeal, 8e, No. 74/25, n° CAL-2022-00650 du rôle, 12 June 2025
Subject to rules applicable to collective dismissals as stipulated by the Labour Code, employers must dismiss 7 employees within 30 days, or 15 employees within 90 days, for reasons that are not related to the employee's behaviour, but for economic reasons or in the framework of recovery, reorganisation, restructuring measures resulting in job losses, liquidation, bankruptcy.
The layoffs must concern at least four dismissals for reasons not related to employees’ behaviour. All other contract terminations by the employer (for reasons not related to employee’s behaviour) on the initiative of the employer, such as voluntary departures, redeployment, early retirement, etc. are considered as redundancies in calculating the threshold.
Public sector employees are excluded from the regulation on collective dismissals.
A court ruling in June 2025 clarified the interpretation of the collective agreement, stressing that objective interpretation prevails. A signatory union may ask for interpretation action on an in-place collective agreement, asking the court to rule abstractly on ambiguous clauses. The court guided objective interpretation, including first references to the collective agreement text, then to related legislation, and last, to the social purpose. The court also ruled that the previous application does not amount to acquiescence or acceptance.
Eurofound (2015), Luxembourg: Definition of collective dismissal, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/definition-of-collective-dismissal/luxembourg
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Eurofound’s ERM restructuring legislation database offers an overview of key restructuring-related regulations in the EU Member States and Norway. Its content is continuously updated to reflect any changes made by national legislators in response to, for instance, policy shifts, legal ...
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This working paper offers a comprehensive methodological overview of the European Restructuring Monitor (ERM) databases. Even though the methodology has not changed over time, new categories have been added, and the way it has been used by researchers and policymakers ...
