How to Terminate Employees in Italy

Updated April 28^th 2025

All About Terminating Employees in Italy

Understand how to terminate employees in Italy and how Justworks EOR can help simplify the process.

How an EOR Can Help with Employee Termination

Hiring in Italy is a great step forward, but what if your business needs change and you need to let an employee go? Italy’s labor laws offer strong protections for employees, meaning terminations must be handled with care. Justworks simplifies the process, providing expert guidance to ensure smooth transitions while you focus on growing your business.

Terminating an Employee in Italy

Under Italian law, the two main types of dismissal are dismissal for just cause, which applies to gross misconduct, and dismissal for a justified reason.

Dismissal Based on Gross Misconduct

Dismissal Based on a Justified Reason

Prohibited Dismissal

Notice Periods

Severance Pay

How TFR is Calculated

TFR Payment and Pension Contributions

Employer Requirements for TFR

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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