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

Italy - Severance pay and redundancy payment


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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 overall salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an employment contract ends 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.

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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 overall salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an employment contract ends 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.

+ show references

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 overall salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an employment contract ends 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.