The charity Caritas is to be completely restructured as a result of an ongoing embezzlement case worth over 60 million euros, with the majority of existing staff likely to be re-deployed.

Of the 390 staff members with Luxembourg-based contacts, just 20-30 people will not form part of the Caritas restructure, according to a statement issued by the OGBL trade union on Monday. A crisis committee was appointed to oversee the restructure, which was planned as a result of a major internal embezzlement scandal and misuse of charity funds.

The employees at risk of losing their jobs due to the restructure work in the international field and manage missions abroad from Luxembourg. The union has demanded solutions or a social plan for the staff members affected.

One staff grievance raised at the meeting is he fact that current management employees are unlikely to be carried over. The OGBL's Smail Suljic said the crisis committee understood there was no space for management in the new iteration of Caritas.

Salaries for the month of September were said to be guaranteed, while staff will be paid by the new entity from October onwards. The new version of Caritas is likely to be established very quickly, the OGBL said.

Earlier this month Prime Minister Luc Frieden confirmed the new version of Caritas would be established by October, after the government halted the charity's funding when news of the embezzlement case broke in July.