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Italy: Termination of employment

Original author: Massimo Pallini
Updating author: Giacomo Matto

Summary

  • A minimum notice period must be given for the termination of employment contracts. (See Notice periods)
  • During employment, employers must set aside an annual amount equivalent to around 7.5% of the employee's pay, to be paid to the employee on termination as an "end of service allowance". (See Severance pay)
  • Employers can dismiss an employee only for a "just cause" or a "justifiable reason". (See Unfair dismissal - general)
  • If an employee's job is eliminated due to a business decision, the employer may dismiss the employee on organisational grounds. (See Unfair dismissal - organisational grounds)
  • Individual misconduct by employees that causes a breach of the employment contract justifies dismissal. (See Unfair dismissal - conduct-related grounds)
  • There are various rules regarding dismissals on the ground of redundancy. (See Redundancy rights)