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> DIALOGUE - home > Employment protection legislation database - EPLex > Italy

Italy - Severance pay and redundancy payment


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Severance pay:
Remarks:
  • However, there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
    It is calculated according to the formula of a year's salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an Italian employee leaves his or her job for whatever reason, and is based on length of service with the company.
    The TFR payment scheme has been reformed. Since 2007, the employer's contributions for the TFR have been transferred to either a state pension fund or private complementary pension funds.

    Notes / Remarks
    No severance pay as such. However there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
    It is calculated according to the formula of a year's salary divided by 13.5, plus 1.5 per cent for each year's service plus compensation for inflation and is payable whenever an Italian employee leaves his or her job for whatever reason or in advance if so required by the employee and under special circumstances.
    The TFR payment scheme has been reformed. Since 2007, the employee can choose between leaving the employer's contributions within the enterprise or transferring them to either a state pension fund or private complementary pension funds.

    + show references

    Severance pay:
    Remarks:
    • However, there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
      It is calculated according to the formula of a year¿s salary divided by 13.5, plus 1.5 per cent for each year¿s service plus compensation for inflation. It is payable whenever an Italian employee leaves his or her job for whatever reason, and is based on length of service with the company.
      The TFR payment scheme has been reformed. Since 2007, the employer's contributions for the TFR have been transferred to either a state pension fund or private complementary pension funds.

      Redundancy payment:

      Remarks:
      • .

      Notes / Remarks
      No severance pay as such. However there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
      It is calculated according to the formula of a year's salary divided by 13.5, plus 1.5 per cent for each year's service plus compensation for inflation and is payable whenever an Italian employee leaves his or her job for whatever reason or in advance if so required by the employee and under special circumstances.
      The TFR payment scheme has been reformed. Since 2007, the employee can choose between leaving the employer's contributions within the enterprise or transferring them to either a state pension fund or private complementary pension funds.