Employment & Labor Law
Unfair dismissal in Luxembourg: substantiating your loss and compensation claim
Establishing that a dismissal was unfair and obtaining the amount claimed are related but distinct questions. Compensation must be substantiated by the harm and its connection to the termination. A calculation based solely on length of service or an amount obtained by someone else is not enough.
Separate the amounts claimed
Present outstanding wages, leave pay, any notice compensation, severance pay and damages separately. Their conditions differ. This separation clarifies the basis of each claim and prevents the same loss being counted twice.
In its judgment of 14 December 2023, the Court of Appeal recalls that compensation for financial loss requires a causal connection with dismissal and that the employee must establish efforts to find another job. It distinguishes this loss from non-material harm. [1]
Document income losses month by month
Prepare payslips before departure, the final statement, benefits received and any earnings from new employment. For each disputed month, state the period covered and nature of the amount. Gross and net amounts must not be added without a consistent method.
The compensable period is not automatically the entire period of unemployment. Case law assesses a reference period according to the circumstances, particularly job-search efforts and the employment situation. [2] The calculation must therefore be explained, not merely presented as a total.
Keep evidence of job searching
Maintain a record of applications showing date, role, company, response and any interview. Attach evidence enabling those steps to be verified. A list created afterwards is less useful without any accompanying correspondence.
- Applications and acknowledgements of receipt.
- Exchanges with recruiters and interview invitations.
- Steps taken with the competent employment service.
- Training or actions undertaken to find another position.
- Offers received and documented reasons for difficulty accepting them.
Example: two months without applications require a different explanation depending on whether no steps were taken or documented incapacity prevented certain actions. Present facts and documents without assuming how the court will treat them.
Describe non-material harm precisely
Describe the personal and professional consequences of termination: worries, circumstances of the announcement, the harm experienced and necessary steps. Support points that can be documented with relevant evidence. Exaggeration is unnecessary, as is confusing understandable emotion with legal proof of harm.
The claim must remain consistent with the chronology. A medical document may illuminate certain consequences; it does not automatically make every difficulty attributable to dismissal.
Check deadlines and the effect of a proposed agreement
Guichet describes the ordinary three-month deadline for a compensation action, its starting point depending on the situation and the effects of a written complaint. [3] Have the deadline calculated without waiting for every amount to be finalised.
If a settlement is proposed, compare the offer with contemplated claims and waiver commitments. KM Legal can review evidence, prepare a reasoned calculation and discuss settlement options without promising a fixed outcome.
Frequently asked questions
Is there an automatic amount for each year of service?
Severance pay must be distinguished from damages for unfair dismissal. The latter require assessment of the harm.
Should I continue documenting my job search after filing a court claim?
Yes. Subsequent steps and income may help update and substantiate the claim.
Contact KM Legal to discuss your situation
Sources and references
Sources consulted on 6 November 2026.
- Court of Appeal — 14 December 2023, CAL-2021-00524 (2023 ZIP archive)
- Justice — Employment law bulletin 2019–2021, loss and harm
- Guichet — Challenging dismissal before the Labour Court
Further reading
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