• Under Article 2120 of the Italian Civil Code, employees are entitled to TFR (Trattamento di Fine Rapporto) upon termination, regardless of reason including resignation.

• TFR accrues during employment at a rate of approximately 1/13.5 of annual salary ( 7.4%), then adjusted annually for inflation with 1.5% plus 75% of the CPI.

• TFR must be paid upon termination, though exact deadlines vary per Collective Bargaining Agreement (CCNL), typically within 30 to 45 days.

• Unused vacation leave

• Final salary for days worked up to resignation

• Pro-rata 13th/14th month payments, if applicable per CCNL

Just Cause (Giusta Causa): Serious misconduct that renders continuation of the employment relationship impossible (e.g., theft, violence, gross insubordination).

• Justified Reason (Giustificato Motivo):

  • Subjective: Breach of contractual obligations (e.g., poor performance, repeated noncompliance).

  • Objective: Business-related reasons (e.g., redundancy, restructuring, economic need).

• Just Cause: Must be documented in writing; though notice is not required, proper justification is mandatory.

• Justified Reason: Requires written notice stating the reason, as mandated by Article 2118 of the Civil Code.

• Just Cause: No notice period; dismissal is immediate.

• Justified Reason: Notice period is stipulated by the applicable CCNL, varying based on seniority and position.

• Regardless of dismissal reason,even in cases of just cause, the employee is still entitled to their accrued TFR (Trattamento di Fine Rapporto).

• TFR is calculated based on annual compensation divided by 13.5 (7.4 - 7.5%), including non-recurring bonuses, revalued annually with indexation.

• Unused vacation or leave must be compensated at the time of termination.

• Pro-rata supplementary payments (e.g., 13th or 14th month salary) must be paid if they were part of the contractual or CCNL terms.

MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent.

The agreement must be in writing and signed by both the employer and the employee. After signing, the employer submits a mandatory electronic notification to the Italian labor authorities through the UNILAV system within 5 days.

TFR (Trattamento di Fine Rapporto) is always payable, even under mutual termination, and employees retain the right to receive their accumulated TFR.

Must be included in the agreement:

• Unused vacation and leave days must be compensated.

• Pro-rata supplementary payments (e.g., 13th/14th months) if applicable under contract or CCNL.

Neither party needs to give notice unless the individual contract or applicable CCNL explicitly requires it. The contract automatically ends on the agreed-upon expiry date.

The employee is always entitled to the accrued TFR (Trattamento di Fine Rapporto) upon termination, regardless of how the contract ends.

• Unused vacation/time off must be compensated.
• Any pro-rata supplementary payments (such as 13th or 14th month salary), if part of the CCNL or contract, must be settled.

TFR (Trattamento di Fine Rapporto) and other owed benefits are typically paid at the end of employment or as per CCNL terms (e.g., within 30 - 45 days).

If payments are delayed, the employee can send a formal notice (diffida). Should that be ignored, they may seek judicial recovery, which can include late payment interest.