Italy
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- Capital City
Rome
- Currency
Euro (€, EUR)
- Languages
Italian
- Population size
60,317,116
Employment termination in Italy
Termination process
Italian employers can in general terminate an employment contract in the following ways:
Urgent dismissal of the employee without notice for just cause, for example in case of theft or any other serious misconduct; or
Ordinary dismissal with notice based a subjective reason, involving breaches of of the employee's legal and contractual duties
Notice period
Except for fixed term contracts, notice periods are decided on and governed by collective bargaining agreements and vary with period of service.
Severance pay
Upon termination of the employment relationship, the employee receives the so called TFR (Trattamento di fine rapporto), which is a part of workers' wages whose payment is deferred upon termination of the employment relationship. The employee can choose to receive it at the end of the employment or have it monthly deducted to a personal pension fund.
Probation periods
The statutory probationary periods in Italy are 45-60 days for employees not assigned to management functions and six months for all other employees. Applicable probation periods are usually mentioned in the national collective bargaining agreement the employer is working under.