Italian dismissal law is protective and layered, with remedies that depend on when the employee was hired and how large the employer is.
Hiring
The permanent contract is the default; fixed-term contracts are limited and generally need a justifying reason beyond an initial period.
Cause and form
A dismissal requires just cause (giusta causa) or a justified reason (giustificato motivo), in writing and with reasons. A formal procedure applies, and collective dismissals follow their own rules.
Remedies and the size threshold
Under the Jobs Act framework, remedies for an unlawful dismissal turn on the hire date and whether the employer is above the size threshold — ranging from reinstatement to a graduated indemnity, an area reshaped by Constitutional Court rulings.
The TFR
Separately, employees accrue severance pay (TFR, trattamento di fine rapporto) throughout employment, paid out when the relationship ends for any reason.
For foreign employers
The size threshold and the changing remedies make this an area to check before acting. A verified Italian colleague can assess exposure and manage the dismissal.
Remedies are evolving through case law — confirm with admitted Italian counsel.