Terminating an employee in San Marino requires careful adherence to legal procedures to avoid potential disputes and liabilities. San Marino's labor laws outline specific requirements for notice periods, severance pay, and permissible grounds for termination. Understanding these regulations is crucial for employers, especially those operating through an Employer of Record (EOR), to ensure compliance and fair treatment of employees. Navigating the termination process correctly minimizes the risk of wrongful dismissal claims and maintains a positive employer reputation.
This guide provides a comprehensive overview of the key aspects of employment termination in San Marino, focusing on the regulations and best practices relevant in 2025. It covers notice period requirements, severance pay calculations, grounds for termination, procedural steps, and employee protections.
Notice Period Requirements
The required notice period in San Marino varies based on the employee's job classification and length of service. The following table summarizes the minimum notice periods:
| Employee Category | Length of Service | Notice Period |
|---|---|---|
| White-Collar Workers | Up to 5 years | 1 month |
| 5 to 10 years | 2 months | |
| Over 10 years | 3 months | |
| Blue-Collar Workers | Up to 5 years | 15 days |
| 5 to 10 years | 30 days | |
| Over 10 years | 45 days |
It's important to note that collective bargaining agreements (CBAs) or individual employment contracts may stipulate longer notice periods than the statutory minimums. Employers must always adhere to the most favorable terms for the employee.
Severance Pay Calculations and Entitlements
Severance pay, known as indennità di anzianità, is mandatory in San Marino for employees terminated for reasons other than gross misconduct. The calculation is based on the employee's final salary and years of service.
The standard formula for calculating severance pay is as follows:
- For each year of service: One month's salary
For example, an employee with 7 years of service would be entitled to 7 months' salary as severance pay.
Severance pay must be paid to the employee at the time of termination. Failure to provide timely and accurate severance pay can result in legal penalties and claims.
Grounds for Termination
In San Marino, termination can be either with or without cause.
Termination with Cause (Just Cause):
- Gross misconduct
- Serious breach of contract
- Criminal activity related to employment
- Repeated unexcused absences
Termination without Cause (Objective Justification):
- Economic reasons (e.g., redundancy, restructuring)
- Technological changes
- Business closure
- Inability of the employee to perform their duties (provided reasonable accommodations have been considered)
It is crucial to properly document the reasons for termination, especially in cases of termination with cause. Insufficient documentation can lead to wrongful dismissal claims.
Procedural Requirements for Lawful Termination
To ensure a lawful termination in San Marino, employers must follow these procedural steps:
- Written Notice: Provide the employee with a written notice of termination, clearly stating the reasons for termination and the effective date.
- Consultation (if applicable): If the termination is due to economic reasons or restructuring, consult with employee representatives or trade unions as required by law or collective agreements.
- Payment of Final Dues: Pay all outstanding wages, accrued vacation time, and severance pay (if applicable) on or before the termination date.
- Certificate of Employment: Provide the employee with a certificate of employment (certificato di lavoro) outlining their job title, duration of employment, and a general description of their duties.
- Notification to Authorities: In certain cases, notify the relevant government authorities (e.g., labor office) about the termination.
Failure to adhere to these procedures can render the termination unlawful and expose the employer to legal liabilities.
Employee Protections Against Wrongful Dismissal
San Marino law provides several protections for employees against wrongful dismissal. Employees who believe they have been unfairly terminated can file a claim with the labor court.
Common grounds for wrongful dismissal claims include:
- Termination without just cause or objective justification
- Discrimination
- Retaliation for reporting illegal activities
- Failure to follow proper termination procedures
If the labor court finds that the termination was wrongful, the employer may be ordered to reinstate the employee, pay compensation for lost wages, and/or pay damages for emotional distress.
To minimize the risk of wrongful dismissal claims, employers should:
- Maintain thorough documentation of employee performance and any disciplinary actions.
- Ensure that termination decisions are based on objective and justifiable reasons.
- Follow all legal procedures meticulously.
- Seek legal advice when in doubt.
