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.166-2, Art.L.511-27
An employer who intends to dismiss at least 7 employees over a period of 30 days or at least 15 employees over a period of 90 days for reasons not related to employees' conduct must follow the procedure set up for informing public authorities about collective redundancies.
In the first instance, the employer must inform the national public employment agency [ADEM] (http://www.guichet.public.lu/entreprises/en/organismes/adem/index.html) and employees' representatives or the employees themselves if the company regularly employs fewer than 15 employees. Before proceeding with dismissals, the employer must begin negotiations with the employees' representatives in order to establish a redundancy plan. In order to do this, the employer must notify employees' representatives of the employee's intention to implement a collective redundancy and provide them with the following information in writing preferably before the start of negotiations, or at the latest at the start of negotiations:
The employer must send a copy of the document addressed to the employees' representatives to ADEM at the latest when negotiations begin. ADEM, on its part, will forward a copy to the national Labour and Mine Inspectorate (Inspection du travail et des mines, ITM). The employer must also provide employees' representatives or, should there be no employees' representative, the employees themselves, with a copy of the notification sent to ADEM. Employees' representatives may also report their observations to ADEM, which will forward a copy to the labour inspectorate.
In addition, if the company regularly employs 15 employees or more, the employer must notify each individual dismissal for economic reasons to the Conjuncture Committee (Comité de Conjoncture). The notification must be sent at the latest when employees receive notification of their period of notice. The Committee can then invite the social partners to negotiate on a job retention plan which must at least explore the scope for avoiding redundancies, mitigating their consequences, taking steps to assist redeployment, and providing the provision of financial compensation.
The Conjuncture Committee consists of four representatives of the government, four from the employers and four from the trade unions. It is under the authority and coordination of the Ministry for Economy. In 2021, the National Conciliation Office (Office National de Conciliation, ONC) has deliberated in 4 cases with companies and staff representatives that could not reach a consensus as regards social plans or collective bargaining agreements ([Ministry of Work and Employment, Annual Report 2021)] (https://gouvernement.lu/dam-assets/fr/publications/rapport-activite/minist-travail-emploi/2021-rapport-activite/rapport-dactivite-mteess-2021-final.pdf)
Eurofound (2015), Luxembourg: Public authorities information and consultation on dismissals, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/public-authorities-information-and-consultation-on-dismissals/luxembourg
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