Dismissal of employees in Italy

Dismissal of employees in Italy

Hiring staff

If you have decided to set up a business in Italy then you will have to hire or dismiss your employees. For that reason you must know the main local regulations and laws related to this field.

Types of dismissals

Foreign entrepreneurs must respect the provisions of the Italian Constitution and the Civil Code as well as obey certain laws. The restrictions related to dismissals are not applied to employees that are close to the pension age and for those who are on their probation period.

There are 4 types of dismissals in Italy and every foreign entrepreneur who has Italian employees must decide which type suits best to his intentions.

  1. Individual dismissals without the legal need of presenting a valid reason.
  2. Individual dismissal with a solid reason.
  3. Individual dismissal for a justified reason.
  4. Collective dismissal.

The first type is used for employees who can retire and who don’t want to work anymore at the same employer. The second one can be applied for employees at the beginning of their contract and who are during their probation period. The third type is used especially for managers or related positions. The last one is for the dismissal of many employees.

Reasons for dismissals

The solid reason for a dismissal is a serious problem created by a certain employee who cannot continue to work at the same company. This could happen also as a result of the misconduct of the employee like theft or insubordination.

Dismissal requirements

The dismissal of employees must be done in writing and a notice announcing the dismissal must be presented to the employee. The employer should offer a reason for the dismissal which should be also in writing. The notice should be given to employee 15 days before dismissal or more (up to 12 months) according to the seniority and position in company.

The employers who don’t offer a notice to the employees, who are to be dismissed, are required to pay them an indemnity that is the salary due to the employee for the period of notice.

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