FTC regulated: Yes

Valid reasons for FTC use: objective and material reasons

Remarks

Art. 10 LP provides for a limited list of 9 cases when FTC can be concluded. The list includes amongst others temporary replacement of a permanent worker, urgent and abnormal pressure of work and seasonal work.

Maximum number of successive FTCs: no limitation

Remarks

No statutory limitation found in the legislation reviewed.

Maximum cumulative duration of successive FTCs: no limitation

Remarks

No statutory limitation found in the legislation reviewed.

Maximum probationary (trial) period (in months): 2 months

Remarks

Art. 11 (3) LP.

Obligation to provide reasons to the employee: Yes

Remarks

Art. 34 (1) LP.

Valid grounds (justified dismissal): worker's conduct, worker's capacity, economic reasons

Remarks

Art. 26 (1) LP.
The LP defines limited grounds relating to the worker's conduct for resorting to termination without notice (art. 27 (1) LP). In addition, the grounds for termination with notice (relating to the worker's capacity or operational requirements) are listed in article 28 (1) and (2) LP).

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, filing a complaint against the employer, race, colour, sex, religion, political opinion, social origin, nationality/national origin, trade union membership and activities, ethnic origin

Remarks

Art. 26 (2) LP.

Workers enjoying special protection: pregnant women and/or women on maternity leave

Remarks

Art. 87 (5) LP: Prohibition to dismiss women workers during pregnancy and maternity leave (up 4 months after childbirth) except in case of serious misconduct (summary dismissal) and as a "last resort" in case of economic dismissal.

Notification to the worker to be dismissed: written

Remarks

Art. 34 (1) LP.

Notice period:

Remarks

Art. 35 1) LP:
The notice period varies according to the length of service or the ground for dismissal, as follows:
- 1 month if the length of service does not exceed 1 year;
- 2 months if the length of service is between 1 and 9 years;
- 3 months if the length of service exceeds 9 years;
OR:
- 2 months when the contract is terminated due to reduction of the workforce.

Note: The notice period for terminating a fixed-term contract shall be agreed upon by the parties (art. 35 2) LP).

tenure ≥ 6 months:

  • All: 1 months.
  • All: 2 months.

tenure ≥ 9 months:

  • All: 1 months.
  • All: 2 months.

tenure ≥ 2 years:

  • All: 2 months.
  • All: 2 months.

tenure ≥ 4 years:

  • All: 2 months.
  • All: 2 months.

tenure ≥ 5 years:

  • All: 2 months.
  • All: 2 months.

tenure ≥ 10 years:

  • All: 3 months.
  • All: 2 months.

tenure ≥ 20 years:

  • All: 3 months.
  • All: 2 months.

Pay in lieu of notice: Yes

Remarks

See art. 44 (under the section concerning "Effects of the unlawful termination of contract of employment): non-compliance by the employer with the notice requirements shall only result in the payment by the employer of wages in lieu of the notice period.

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): "Reduction of workers" for economic reasons affecting at least:
1) 10 % of the workers; or
2) 5 workers over a period of 10 days in undertakings employing between 15 and 50 workers.

Remarks

Art. 29 (1) LP.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Art. 29 (3) LP.

Notification to the public administration: No

Notification to workers' representatives: Yes

Remarks

Art. 29 (3) LP.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks

Art. 29 (3) LP: workers with skills and a higher rate of productivity have priority to retain their posts. In case of equal skills and effectiveness, the workers to be affected must be in the following order: those with the shortest length of service, those with fewer dependents, disabled workers, worker's representatives and pregnant women.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: No

Severance pay:

Remarks

Art. 40 (1) &(2) LP:
Severance pay amounts to:
- 30 times the average daily pay of the last week of service for the first year of service. (For less than one year of service, severance pay should be calculated in proportion of the period of service),
- If the worker has served for more than a year, severance pay shall be increased by 1/3 of the previous sum (that is 10 days' wages) for every additional year of service, within a limit of a total amount of 12 months' wages.

[In addition to these amount, the worker is entitled to 30 days' wages in case of constructive dismissal: art. 41 LP]

tenure ≥ 6 months: 0.5 months

tenure ≥ 9 months: 0.8 months

tenure ≥ 1 year: 1 months

tenure ≥ 4 years: 2 months

tenure ≥ 5 years: 2.3 months

tenure ≥ 10 years: 4 months

tenure ≥ 20 years: 7.3 months

Redundancy payment:

Remarks

Art. 40 (3) LP: Severance pay + specific additional payment of 60 days' wages (2 months) in case of a collective dismissal on economic grounds ("reduction of workers") or closing down of the undertaking.

tenure ≥ 6 months: 2.5 months

tenure ≥ 9 months: 2.8 months

tenure ≥ 1 year: 3 months

tenure ≥ 2 years: 3.3 months

tenure ≥ 4 years: 4 months

tenure ≥ 5 years: 4.3 months

tenure ≥ 10 years: 6 months

tenure ≥ 20 years: 9.3 months

Notes / Remarks

Notes

1) Individual dismissal (including for economic reasons): severance pay
2) Collective dismissal for economic reasons: redundancy payment

Compensation for unfair dismissal - free determination by court: No

Remarks

Art. 43(4) LP.

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): * Contract of an indefinite period:
180 times the daily pay (6 months' wages) and a sum equal to the remuneration for the appropriate notice period.
* Fixed-term contract:
A sum equal to the wages the worker would have earned until the lawful end of his contract provided it does not exceed 180 days' wages.

Remarks

Art. 43(4) LP.

Reinstatement available: Yes

Remarks

Art. 43 LP.
Reinstatement is mandatory in case of unfair dismissal. However, when dismissal is unlawful, the court may award compensation in lieu of reinstatement if it believes that the continuation of the employment relationship will give rise to serious difficulties.

Preliminary mandatory conciliation: No

Competent court(s) / tribunal(s): labour court

Remarks

The labour division of the regional first instance court has jurisdiction over claims related to termination of employment: art. 138 1) a) LP.

Existing arbitration: No

Length of procedure: 60day(s) (statutory)

Remarks

The legislation foresees statutory time frames for adjudicating the case (Art. 138 and 139 LP)
* First instance court decision: 60 days from the date the complaint was registered.
* Appeal should be lodged within 30 days from the first instance decision and the appeal decision should be delivered within 60 days from the date of the appeal.