Notice Periods and Resignations in Italy: FAQ for Foreign Employers

Hiring in Italy is the easy part for many foreign companies. Letting someone go, or seeing them resign, is where surprises appear. This FAQ covers how people leave jobs in Italy and what you need to plan for.

Do Italian employees have to give notice when they resign?  

Yes. An employee who resigns must give notice. The length is not set by the company. It comes from the national collective agreement (CCNL) that applies to the role. The agreement usually sets longer notice for higher job levels and for people with more years of service.

Your employment contract cannot freely replace these rules. If you want to know the exact notice for a given hire, check the agreement that covers the sector and the job level.

Who decides which collective agreement applies?  

The sector and the type of work decide. A software engineer, a sales manager and a warehouse worker may fall under different agreements. Each agreement sets pay floors, leave, notice and other terms. Pick the right one before you hire, because it affects every exit later.

How does an employee hand in a resignation?  

Resignation must be submitted through an official online procedure. A letter or an email to the employer is not enough on its own. The employee files the resignation on a government platform, and the employer receives it. This rule exists to prevent forced or backdated resignations.

If your team is abroad, tell them about this early. Many managers expect a simple email and are surprised that it has no legal effect.

Can the employee leave before the notice period ends?  

Only if you agree. You can release the employee early. In that case the notice is shortened by mutual consent, and it is wise to put this in writing.

If the employee leaves without working the notice and without your agreement, the company can claim an indemnity for the missing notice. In practice, this is often deducted from final pay, within the limits the law allows.

Can the company pay instead of letting the employee work the notice?  

Yes, in many cases. The party who ends the relationship early can pay an indemnity in place of the notice. It is calculated on pay for the missing notice time. For the employer, this is a common tool when a departing employee has access to sensitive data or clients.

Can an employer dismiss an employee freely?  

No. Italy does not allow dismissal at will. A dismissal needs a valid reason. The reason can relate to the employee’s conduct, to serious misconduct, or to genuine business needs. The process has formal steps, and mistakes can lead to reinstatement or compensation.

For a foreign company used to simple exits, this is the biggest difference. Plan any termination with local advice before you act.

Is there a probation period?  

Many contracts include a probation period. During probation, either side can usually end the relationship with less formality. The probation must be agreed in writing from the start. If it is missing from the signed contract, it does not exist.

What does the employee receive when they leave?  

Final pay is more than the last salary. Expect these items:

• Salary up to the last day worked.
• Pay for leave not yet taken.
• Any pro rata share of extra monthly pay set by the collective agreement.
• The accrued severance pay, known as TFR.

TFR builds up during employment. It is paid when the relationship ends, whatever the reason. Your payroll must track it correctly from the first month, because it can become a large amount over time.

What happens if the employee is also a manager with special terms?  

Executives often fall under a different agreement with their own rules on notice and dismissal. Their notice can be longer and their protection different. Do not assume the standard rules apply. Review the executive agreement before you sign.

What paperwork follows an exit?  

The company must report the end of the relationship to the authorities within the set deadlines. It must also close the payroll and social security position and issue final tax documents. Missing a filing can create fines, so these steps should have an owner.

What should foreign companies do before hiring?  

• Identify the correct collective agreement.
• Write the notice and probation terms clearly in the contract.
• Brief managers abroad on the online resignation procedure.
• Set aside budget for TFR and unused leave.
• Get local advice before any dismissal.

How can an Employer of Record help?  

An Employer of Record (EOR) becomes the legal employer in Italy. It applies the right collective agreement, handles the resignation procedure, calculates final pay and files the exit paperwork. You keep day-to-day control of the work. The EOR carries the local employment compliance.

This lets you hire in Italy without building a local entity first, and exit cases are handled by people who do this daily.

Find the country site for your market or request a quote to see how an EOR in Italy would work for your team.