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A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance but instead due to economic cycles or the company's need to restructure itself, the firm itself going out of business, or a change in the function of the employer (for example, a certain ...
art 2, establishes the scope and says short fixed term, probationary or casual workers may be excluded; art 3, defines termination as at the initiative of the employer; art 4, says the employer must have a valid reason for termination based on "the capacity or conduct of the worker or based on the operational requirements of the undertaking, establishment or service"
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Severance pay in Luxembourg upon termination of a work contract becomes due after five years' service with a single employer, provided the employee is not entitled to an old-age pension and the termination is due to redundancy, unfair dismissal, or covered in a collective labor agreement. [32]
The redundancy compensation payment for employees depends on the length of time an employee has worked for an employer which excludes unpaid leave. If an employer can't afford the redundancy payment they are supposed to give their employee, once making them redundant, or they find their employee another job that is suitable for the employee.
The Claeys Formula is used in Belgium by the practitioners of social law to evaluate the notice period that has to be respected when an employee is dismissed.This formula derives from a statistical analysis of the case law and takes into account three variables: length of service, age and remuneration.
You are not entitled to redundancy if you have simply reached retiring age (s.156). And nothing prevents the employer from making a dismissal for misconduct or capability, as outlined under the fairness provisions for dismissal (s.98). The amount of redundancy is based on a length of service calculation and age.