Luxembourg - Redeployment of employees: what's new for employers ?

In 2016, the Luxembourg legislator reformed the redeployment procedure applicable in the Grand Duchy of Luxembourg (“procédure de reclassement” in French). The reform has, however, not achieved its objectives and has received a lot of criticisms from all involved parties.

To address its flaws and make it more efficient, while also improving the financial situation of redeployed employees and to simplify the redeployment process, a new law of 24 July 2020 has been enacted, which entered into force on 1 October 2020.