Payroll and Benefits Guide San Marino

Termination Process

Termination of employment in San Marino is regulated primarily by the Labour Code and collective bargaining agreements (CBAs). Employers are permitted to end an employment contract only where there are valid and demonstrable reasons. These generally fall into three categories:

• Economic reasons, such as redundancies, reorganizations, or the employer’s financial difficulties.

• Personal reasons, such as incapacity, persistent poor performance, or inability to perform the essential duties of the role.

• Disciplinary or misconduct reasons, which may be classified as minor, serious, or gross misconduct. In cases of serious or gross misconduct, dismissal may be immediate, but the employee must still be granted due process.

The procedure for termination requires that the employer clearly communicate the reasons for dismissal in writing. Employees must be informed of the grounds for the decision and are entitled to respond or present their defense, often with trade union or employee representative support. Collective bargaining agreements may stipulate additional procedural safeguards, especially for unionized roles.

If a termination is deemed unfair — for example, if there was no valid reason, if the procedure was not followed, or if discriminatory grounds were involved — the employee has the right to challenge the dismissal before the labour tribunal. Possible remedies include monetary compensation or, in some cases, reinstatement to the previous role.

Notice Period

In San Marino, the length of notice depends on seniority and collective bargaining agreements (CBAs). As a general guide, the statutory minimums are 1 month after at least 6 months of service and 2 months after at least 2 years of service, while many CBAs extend this to around 3 months for managerial staff. Notice may be worked or replaced by pay in lieu, depending on agreement.

Severance Pay

Employees dismissed without serious or gross misconduct are entitled to statutory severance. The standard calculation is ¼ month’s salary per year of service for the first 10 years, increasing to ⅓ month per year of service beyond 10 years. The amount is based on the most favorable average of the employee’s last 3 months or 12 months’ salary.

Probation

Probation periods in San Marino vary by category of worker, unless a CBA or contract specifies shorter terms. The maximum initial probation periods are 2 months for workers and clerks, 3 months for supervisors and technicians, and 4 months for managers. Probation may be renewed once if expressly allowed in the contract or collective agreement.