“Using up the rights to sick pay therefore implies automatic termination of the employee’s employment contract,” confirms the Chamber of Employees. Photo: Shutterstock

“Using up the rights to sick pay therefore implies automatic termination of the employee’s employment contract,” confirms the Chamber of Employees. Photo: Shutterstock

Employees who fall seriously ill are rarely responsible for their own illness. In Luxembourg, however, the law stipulates a 78-week limit during which an employee on sick leave has his or her salary covered by the National Health Fund (CNS). In 2024, 540 employees had exhausted their rights.

In France, the payment of sick leave benefits is capped at 360 days per period of three consecutive years. But in Luxembourg, the National Health Fund (CNS) covers the salary of a person on sick leave for a maximum of 78 weeks over a reference period of 104 weeks. This means that entitlement to sick pay is limited to 78 weeks, even if the inability to work extends beyond this period.

Some people who fall seriously ill and are medically unable to return to work after these 78 weeks therefore find that they have exhausted their entitlements. “The employee’s contract of employment is automatically terminated on the day on which he or she exhausts his or her entitlement to the sick pay granted to him or her in accordance with the provisions of the Social Security Code, i.e,. after 78 weeks of incapacity to work during a reference period of 104 weeks,” says the Chamber of Employees. “Using up the rights to sick pay therefore implies automatic termination of the employee’s employment contract.”

67.5% receive replacement income

Questioned by MP (Piraten) on the subject and the number of employees affected in recent years, health and social security minister  (CSV) initially stated that “the employer is obliged to pay the normal salary until the end of the month in which the 77th day of incapacity for work occurs during a reference period. By the Act of 10 August 2018 amending the Labour Code and the Social Security Code, this reference period was extended from 12 to 18 months with effect from 1 January 2019.”

Since the law was changed, the number of employees no longer entitled to “sick pay” has fallen considerably. In 2018, 1,056 employees were affected and since 2019, an average of 312 employees have been affected. “It should be added that since then there has been a steady increase, with 540 people affected by the end of 2024,” the minister adds in her parliamentary reply. This compares with 407 in 2023, an increase of 32.68%.

Goergen also asked about the situation of these employees six months after they lost their entitlements. It turns out that 67.5% receive a “replacement income”: around one-quarter (24.3%) receive a disability pension, 17.4% receive “unemployment benefits excluding outplacement,” 13.8% receive “unemployment and outplacement benefits,” 8.1% receive an accident pension, and 3.9% benefit from an old-age pension. The minister also points out that 16% of these employees do not live or work in Luxembourg and do not receive any replacement income or social security.

This article was originally published in .

Related articles