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Severance pay (buonuscita)! What is it?
Severance pay is the amount added to other Termination of Employment Benefits (TFR) payments that the employer pays to the employee to avoid claims related to:
- the conclusion of an employment relationship (eg in the case of work “in black”);
- the implementation of labor relations (for example, in the event of a difference in pay related to the actual work performed and labor duties provided for in the official classification of national collective agreements for the corresponding labor category);
- termination of employment (for example, unjustified dismissal or dismissal for a valid objective reason).
Severance pay, when to ask / to pay it?
Compensation paid by the employer to the employee is aimed at preventing possible litigation: it eliminates the risks of a possible negative court decision for the employer, while the employee receives quick fulfillment of his claims.
The amount of compensation upon dismissal depends on three factors:
1- What norms of the law were violated during labor relations?
2- What are the consequences of violations of the law?
3- What are the risks that may arise if checked by the competent authorities?
All these aspects are technical in nature, and only a qualified specialist can accurately determine the size of the severance pay. In fact, this assessment is similar to the surgeon’s prognosis regarding the success of the operation, when the patient and his family ask the specialist to tell about the expected result and clarify the details. In legal terms, this is the same.
At the same time, the main two factors for assessing the amount of compensation are (1) the fact of unlawful dismissal and (2) the amount of labor duties that does not correspond to the labor category according to the official classification.
Dismissal for no reason and Dismissal for a reasonable objective reason.
Dismissal may be legal, i.e. in accordance with the requirements of applicable law, or illegal, i.e. with violating regulatory requirements of the law.
If you want to know more about “dismissal for no reason,” click on this link.
If you want to know more about “dismissal for a reasonable objective reason”, please click on this link.
Employment classifications
Employment classifications are established in accordance with the official classification of the collective agreement applicable in accordance with the labor duties of the employee.
The employee’s job responsibilities are set by the employer.
The assigned labor duties depend on the level of complexity of the work and training of the employee, therefore, the collective agreement establishes various levels and sizes of wages.
If the employer entrusted the employee with more complex tasks than those stipulated by the contract according to the category of such employee, in this case the employee has the right to an increase in his salary.
At the end of the employment relationship, the employee has the right to demand repayment of the debt arising in connection with this underpayment.
Classification Levels According to National Collective Trade Agreements
An example for collective agreement for trade workers is described here.
Please contact Bonato Law Firm if you have any further questions.
