The rules on severance pay in detail
In all cases of termination of an employment contract and for resignation or dismissal for serious cause, the employee is entitled to an employment termination payment (‘Trattamento di Fine Rapporto’ or ‘TFR’). This is a sum already accrued by the organisation. This payment is calculated by dividing the annual remuneration by 13.5 for each year of service, which is equal to 7.4% of the annual gross salary. Since 2007 employees have been entitled to request the employer to transfer the TFR accrued to public or private pension funds. Entitlement to TFR begins when the employment starts. There is no qualifying period.
Author: Toffoletto De Luca Tamajo e Soci
Date: December 2019