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Promotion is a common practice implemented in most companies, but what is the legal procedure to follow for its application?
The promotion procedure
According to Luxembourg labour law, any modification that is “neutral or favourable to the employee […] may be applied without notice and without the employee’s consent”. A promotion may therefore be imposed unilaterally by the employer. The employee must nevertheless be informed of the modification by registered letter or by a letter delivered by hand. The law also stipulates that an interview must take place in companies with more than 150 employees.
Of course, the employer cannot unilaterally modify the contract if the change is unfavourable to the employee. This includes, for example, a pay reduction, a non-compete clause, an increase in working hours, or even a demotion to a position below the employee’s level of competence.
If an employee refuses a promotion imposed by the employer, they may leave the company while retaining the same rights as in the event of dismissal. Their departure will not be considered a resignation, and they will therefore be entitled to greater protection.
Find out more about dismissal in Luxembourg in our dedicated article.
Modification of the employment contract
A promotion involves a modification of the employee’s employment contract. It must therefore be formalised through a written amendment to the contract. This amendment must be signed by both parties and drawn up in two copies. The employee’s copy must be handed over no later than the date on which the modifications take effect.
If the employee refuses to sign the amendment, the changes will still be applied. Similarly, if they refuse to comply with the new conditions, they may face disciplinary action or even dismissal, as this would be interpreted as a refusal to work.
Conditions for promotion
A promotion most often results from an explicit decision by the employer, who assigns their employee to a new position when they deem them ready for the new role.
However, some contracts include an automatic promotion clause, which takes effect after a certain period or once a specific objective has been achieved. This allows new employees to have a clearer view of their future and reduces the degree of subjectivity associated with spontaneous promotions, which may be perceived as unfair.
Every promotion must nevertheless be based on objective and verifiable criteria. If the employer cannot provide such justification, they risk facing a challenge on the grounds of discrimination or unequal treatment.
It is therefore evident that a promotion often occurs after having gained a certain level of experience within the same company.
Find more information about employment legislation in Luxembourg on our blog.
