Legal & Tax

Employment Law

Providing expert and proactive employment law advice

Your Employment Law experts

Putz Jean-Luc

Partner

Leclerc-Aïn Gaëlle

Senior Associate

Meis Kim

Senior Associate

Introduction

Our Employment Law, Pensions & Benefits team expertly and proactively advises domestic and international institutional clients, assisting them with the full spectrum of labour and employment law matters. In addition to our international reach and a global approach, we have deep knowledge of the local regulatory landscape and advise most of Luxembourg’s largest employers on a wide variety of matters.

To ensure we provide expert and proactive employment law advice specifically tailored to our clients’ needs, our team can draw on expertise from other practice areas within the firm.

Our experience includes employment contracts; business immigration and expatriation; restructuring and reorganisation; industrial relations; collective redundancies and bargaining negotiations; equity and pension schemes; share option plans; restrictive covenants; data protection and privacy at work; social security law; anti-harassment; whistleblowing obligations and more.

All aspects of employment contracts, including termination

Our team advises clients across the employment lifecycle on a wide range of complex HR- and recruitment-related matters, including contracts linked to hiring and individual and collective dismissals, remuneration, restructuring, employment and pensions disputes, discrimination matters, and more.

Our expertise ensures that contractual agreements align with the necessary considerations for tax and social security compliance in an internal context when dealing with mobile employees.

We have the expertise needed to provide global, strategic advice on highly technical matters, including terminations due to redundancy, personal or professional reasons, as well as on dismissals. We are skilled in analysing the feasibility of terminations and the potential financial, reputational, tax and legal risks of each case. We assist with tasks like drafting warning letters and subsequent termination letters, and provide general guidance on the termination process and negotiations with relevant labour unions.

Business immigration and expatriation

We have a strong background in business immigration and expatriation law. We advise on all business immigration issues and procedures, including the nuances and principles specific to the Grandy Duchy of Luxembourg.

Based on our profound knowledge of local regulations, we offer a suite of solutions and practical advice to address cross-border issues so that our clients can implement the best strategies, achieve smooth workforce transitions, and maintain business resilience with legal certainty.

We also advise on mobile workers with respect to taxation, social security, teleworking and more. We can guide these employees through each step on the path to a compliant working relationship, including obtaining work permits, visas, study permits, permanent resident status and citizenship.

We leverage our extensive knowledge of both Luxembourg’s income tax and social security laws, as well as our excellent command of international tax and social regulations, to expertly guide employers through these ever-evolving landscapes. Our support ensures that they not only maintain compliance but also achieve cost savings.

Secondment

Secondment is a tool of the modern workplace that can serve the short-, medium- or long-term objectives of employers and staff alike. Secondments allow employees to work in different positions and learn new skills without losing their status within the organisation. For companies, secondments help to manage payroll, offer staff development opportunities and temporarily add or remove workforce to match fluctuating business needs in a dynamic environment.

However, when considering a secondment, internal and external mobility should be managed with extreme caution in order to preserve mutual trust, as well as legal and regulatory certainty for both parties. 

Our team has been lauded for its expertise in helping employers act strategically to preserve the balance between business needs and employee rights. We help implement precisely targeted measures, policies and agreements in full compliance with local and European regulations to guarantee the necessary minimum protections and favourable working conditions for all posted employees to align operational requirements and suitable staffing from a legal perspective. With our multidisciplinary expertise, we also guarantee the comprehensive management of all tax and social security aspects related to secondment. From initial setup to seamless implementation and accurate reporting, we ensure that every detail is properly handled.

Restructuring and reorganisation

We have a long and solid track record of advising on successful business restructuring and reorganisation projects. Our resources allow us to interact effectively at all levels, design a pragmatic approach for situations of any size and complexity, and quickly implement sustainable solutions.

Industrial relations

Our team has a unique body of experience advising on efficient and adapted industrial relations, which are crucial for business resilience and long-term prosperity. We help our clients strike a balance in their strategic relationships with employees, trade unions, employer organisations and public authorities.

Advising a very large domestic and international institutional client base from the banking, financial and industrial sectors allows us to understand their work environments, their needs, and the sensitive, technical and legal issues that affect them. We assist and help preserve industrial relations in all aspects related to employment law in day-to-day activities or in the most challenging situations, such as in the context of a politically sensitive shutdown of production activities or the merger and global restructuring of the activities of a company, where we provide assistance in negotiations with trade unions and employee representatives.

Collective redundancies

Collective redundancy procedures are complex, highly strategic and a real challenge for employers. Our specialised team has the vast experience, skills and resources needed to optimally advise on, manage, negotiate and implement these procedures. We assist in (1) preliminary and tactical discussions, (2) conduct negotiations with employees, (3) trade unions and employee representatives, (4) the whole collective dismissal procedure, (5) and the drafting of all related contractual documents.

Collective bargaining negotiations and litigation

We have considerable expertise assisting both local and international clients engaged in collective bargaining negotiations with trade unions and staff representatives, as well as negotiating contracts for special circumstances like strike resolution.

Our assistance includes risk assessment, strategic and practical recommendations, and identification of all arguments available to the client so that it can defend itself successfully while holding its position on a competitive market.

We also help in formatting collective agreements and assist in case of litigation.

Compensation and benefits schemes

With decades of experience advising a large and diversified client base, we understand the pressure on businesses and governing bodies to provide competitive compensation and benefits schemes, which are currently a key lever in the employer-employee dynamic.

We have helped many entrepreneurs, large multinational companies and global financial organisations design, develop and implement innovative benefits and tailor-made compensation programmes to stand out on the job market.

We provide strategic, board and shareholders level advice on the challenges around employment, compensation and benefits, as well as day-to-day support on the handling of complex issues arising from the management and administration of pension arrangements and all types of incentive schemes.

Tailor-made incentive schemes

Among the multitude of solutions for employee profit-sharing and benefit schemes, many businesses have opted for a policy granting key staff the right to a participation in company shares or value increase. This is one way to incentivise these employees to build their careers with the company and offer a performance reward apart from conventional remuneration.

From our experience assisting many local and international businesses in a wide range of industries and sectors, our team is able to identify the most appropriate, cost-effective and efficient ways for clients to retain and motivate talent while safeguarding the company’s financial, reputational and tax interests. We assist in designing and implementing Long-term Incentive Plans (LTIP), Management Incentive Plans (MIP), Company Share Option Plans (CSOP) or other sophisticated types of discretionary option plan.

Implementing an incentive mechanism triggers numerous legal questions from very different sets of laws. Our experienced team is here to advise on a wide range of long- and short-term incentive plans, and to assist in their implementation, adaptation, and review.

Pension schemes

We provide expert advice and sophisticated solutions to the most complex issues faced by our clients with respect to pension schemes, for all categories of employee.

Our team advises on the options, conditions, and implementation of complementary pension schemes for specific staff groups, and on how to make existing pension schemes for senior leadership more efficient. At the same time, we ensure legal and regulatory compliance and help preserve companies’ competitiveness and attractiveness to skilled workers.

Restrictive covenants

Restrictive covenants are important in employment contracts, as they can protect a business during employment and once an employment relationship has been terminated.

Our team helps companies design and properly apply restrictive clauses, ensuring that they are realistic and justified. This protects the business without unduly burdening employees, preventing disputes as well as operational and reputational damage.

Data protection and privacy at work

Our team is highly qualified to deal with issues of personnel data privacy in companies. We advise on all aspects of regulatory compliance in data processing and help employers navigate sensitive and complex cases in employee data management that raise tough questions in different areas, such as employer obligations.

Social security law

We have deep knowledge of the scope and challenges of social security laws (both local and international) as they impact businesses and employees. Our experts advise companies on the rules and problems in this complex and constantly changing area of law and can support them throughout all employment relationship procedures, from employee onboarding to employment contract termination. We also help them draft and implement sophisticated HR policies that let businesses successfully avoid penalties – and in the event of litigation, we represent them in the social security and labour courts.

Litigation and dispute resolution related to employment law

Conflict in the workplace is disruptive and can be harmful to everyone involved. When disputes arise, we find appropriate solutions that pave the way to ensuring the client’s business continuity. If a conflict becomes drawn out, for instance following fruitless negotiations, our team is well equipped to conduct dispute resolution and has a proven track record of representing clients in court for all types of claims.

Our team offers:

  • Guidance to clients in challenging situations, evaluation of potential financial, legal and reputational risk, assistance in negotiations and preparation of supporting documents
  • Particular expertise in negotiating out-of-court settlements, arriving at consensus and helping clients identify clear, long-term solutions
  • Hands-on assistance in internal investigations

We represent employers in all employment-related litigation, including defending them against claims of unfair dismissal or discrimination.

Litigation & Dispute Resolution

ESG aspects

ESG and sustainability

ESG considerations have dramatically altered the labour and employment landscape. More than just a new bundle of regulatory challenges, ESG has become a tool for businesses to retain talent, stay ahead of the competition, build a more efficient and positive workplace and reduce the risk of employment litigation.

To help our clients achieve their ESG ambitions in terms of regulatory, social, governance or business strategy, our Employment Law, Pensions & Benefits team provides expert advice on the following aspects: 

  • Employer obligations with respect to health, safety and working environment
  • Fighting moral harassment (find out more here_)
  • Assisting employers with their whistleblowing obligations (find out more here_)
  • Implementing corporate governance that is efficient, compliant, transparent, and inclusive
  • Designing and implementing fair and flexible workplace policies
  • Investigations to handle disputes, claims of inappropriate behaviour, discrimination, or moral harassment
  • Training needs for employers and staff on topics in ESG, workplace behaviour, diversity, and inclusion
  • Remuneration aspects linked to ESG regulations

Company works rules

Our experts advise companies on the drafting, implementation and amendment of regulations and policies that eliminate uncertainty, prevent conflict, and build a constructive working environment.

We advise on all types of working rules and policies, including:

  • Anti-harassment and whistleblowing
  • Codes of conduct
  • Employee disciplinary action policies
  • Equal opportunity policies
  • Ethics policies
  • Remote work policies
  • Remuneration, compensation, and benefits policies
  • Work schedule, holiday, and time-off policies
  • Workplace health, safety, and security policies

European employment law

Our team helps local and international clients meet the challenges of the modern workplace. This includes providing expert advice on all EU labour and employment law issues impacting our clients, from advisory and litigation perspectives.
Through Luxembourg’s central position in the European economy and our clients’ exposure to the globalised economy, we have gained invaluable experience acting for clients at the EU’s Court of Justice and General Court, ensuring that their interests are well represented to institutional decision-makers.

EU Financial &
Competition Law

Employment training sessions

Due to high demand notably from Luxembourg entrepreneurs on employment law issues, especially in response to regulatory changes, our specialised team has organised many training sessions and interactive seminars for our clients through Arendt Institute. During this training, we share our in-depth knowledge of the latest regulations and their implications, and work with HR professionals to develop efficient strategies for navigation and compliance with the various applicable rules. These training sessions are suitable for all employment law professionals wishing to strengthen their skills in this area.

Due diligence on employment law issues

Arendt is a leading expert in assisting clients with complex, high-profile M&A transactions. Employment law due diligence plays a key role in the decision-making process that precedes sales, acquisitions and mergers of businesses, and the outcome of such diligence has a significant impact on many aspects of these transactions, including pricing, timing and feasibility.

Our experts have deep knowledge around all employment law issues arising in the due diligence context. We provide expert strategic advice on parties’ potential liability under national and EU employment laws, and on the corresponding litigation risks. Among other solutions, we routinely help clients implement pre-transactional remediation action to prevent such risks.