On Monday 16 March 2026, Luxembourg trade union ALEBA released a statement regarding a judgment delivered on Thursday 5 March 2026 by the Court of Cassation of the Grand Duchy of Luxembourg which overturned a ruling by the High Council of Social Security (CSSS) in 2025.
In its statement, ALEBA said it was “delighted to announce a remarkable victory” before the Court of Cassation and emphasised that successes before the court are extremely rare.
The trade union said that by accepting the pleas based on a breach of the law, the Court of Cassation ruled in favour of ALEBA on the merits, thereby establishing a legal position of considerable significance for all employees undergoing redeployment in Luxembourg.
According to ALEBA, the case involved one of ALEBA’s members, an employee of a local bank, and the National Employment Agency (ADEM). At the time of her dismissal, the employee had benefited from a four-year notice period, extended under the collective agreement applicable to the banking sector as well as a company agreement concluded in good faith within her organisation. As she was undergoing internal redeployment at the time of dismissal, she continued to receive financial redeployment compensation throughout the duration of this notice period.
However, after noting that the statutory notice period had been extended by agreement, ADEM decided to cease payment of the compensation beyond the statutory notice period and to seek repayment of the sums already paid. ADEM argued that the artificial extension of the employment contract beyond the statutory notice period would unduly allow the employee to receive compensation at the State’s expense.
ALEBA successfully challenged ADEM’s reasoning before the Special Review Committee set up within ADEM, and then before the Social Security Arbitration Council, to which ADEM had referred the case following this initial victory. ADEM subsequently lodged an appeal before the CSSS, which, in a ruling dated 31 March 2025, found against our member.
Determined to defend its member’s rights to the very end, ALEBA then lodged an appeal in cassation. The Court of Cassation ultimately ruled in its favour, overturning the judgment of the CSSS.
The trade union said: “This outcome, achieved after five years of proceedings and numerous hearings, represents an exceptional result of which ALEBA is proud.”
ALEBA highlighted the following elements of the judgement:
• for employees undergoing redeployment: the decision confirms that employees benefiting from a notice period extended by a collective agreement or company agreement are entitled to continued redeployment compensation for the entire duration of that notice period;
• for employers: companies that conclude agreements in favour of their employees, in compliance with collective agreements, cannot be suspected of attempting to defraud the State. Good faith in collective bargaining is thus recognised and protected;
• for legal certainty: by ruling on a breach of the law, the Court of Cassation provides welcome clarification on the interaction between collectively agreed employment law and the statutory regime governing redeployment compensation.
“This victory in cassation is the result of five years of relentless work, carried out behind the scenes in the service of a member who placed her trust in us. It is a victory for her, for all employees undergoing redeployment and for social dialogue in Luxembourg,” said Roberto Mendolia, President of ALEBA.
