Dismissal of employees in Italy
Dismissal of employees in ItalyUpdated on Monday 18th April 2016
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A foreign entrepreneur who wants to dismiss a part of his employees must know the main local regulations and laws related to this field.
Firstly, the foreign investors must respect the provisions of the Italian Constitution and the Civil Code and then there are certain laws to be obeyed: 604/1966, 108/1990, 300/1970, 223/1991 etc. 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.
Types of dismissals in Italy
There are four types of dismissals in Italy and every foreign entrepreneur who has Italian employees must decide which type suits best to his intentions:
- individual dismissals without the legal need of presenting a valid reason;
- individual dismissal with a solid reason;
- individual dismissal for a justified reason;
- collective dismissal.
The first type of dismissal is used for employees who can retire and who don’t want to work anymore at the same employee. The second type 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 and the last type is for the dismissal of many employees.
The solid reason for a dismissal (the so called “giusta causa” in Italian) is a serious problem created by a certain employee who can not continue to work at the same company. This could happen also as a result of the misconduct of the employee, for example a theft or insubordination.
The notice before the dismissal
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, also in writing, for the dismissal. The notice will be given to the employee 15 days before dismissal or more – up to 12 months, according to the seniority of the employee 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.
If you need more information about the dismissal of employees and you want legal assistance, you may contact our law office in Italy. Our Italian attorneys will offer you legal advice so you can dismiss your employees according to the Italian regulations and laws.