Settlement Agreement Luxembourg

Finally, it is important to know that a transaction agreement, if concluded in the context of a termination with immediate effect, is valid for the state, but is not applicable. As a result, the reimbursement of unemployment benefits automatically falls to the worker and not to the employer. This may deter the worker from settling in and encourage them to take legal action or, on the other hand, encourage them to negotiate higher compensation to take into account the reimbursement of these benefits. Under labour law, for example.B. in the event of a dismissal dispute, a settlement agreement remains interesting considering that, depending on the age of the worker, the longest seniority in the company (or group) and the effort to create a new job, the amounts currently awarded by an employment tribunal for moral damages are between 500 and 25,000 euros during the reference period on which the calculation is based. material damage, between EUR 500 and EUR 25,000. , in exceptional cases, up to 36 months. Contrary to what employers and workers think, the procedure with respect to the state is not closed after the signing of the transaction contract. During the conciliation process, the ONC will attempt to negotiate an agreement between the parties to the dispute. Conciliation ends when a collective agreement is concluded or it is unanimously decided that the conciliation has failed. If an agreement has not been reached 16 weeks after the first conciliation meeting, any party to the dispute may declare the conciliation to fail.

If the conciliation fails, the ONC makes a statement on the issues still in dispute. Parties may, in the course of a proceeding or prior to the appearance of a dispute, find common ground with reciprocal concessions definitively ending the ongoing or ongoing litigation. In practice, out-of-court settlement of disputes is the most common. In labour law, the comparison is a contract entered into by the employer and the worker to put an end to all disputes (most often related to the termination of an employment relationship) and to enter into reciprocal concessions and agreements. Once the parties have reached an agreement, they can no longer appeal to the labour tribunal to clarify the issues raised in comparison. In addition, the transaction agreement must be interpreted strictly and deals only with the points it specifically addresses. The parties can only take legal action to compel the other party to comply with the terms of the transaction agreement.