How to end a domestic work contract in Italy: resignation, dismissal, notice and final settlement
Ending a domestic work contract in Italy is not just “stop working tomorrow”. Even for a caregiver or a cleaner, there are rules about notice, final payslip, unused leave, and TFR (severance pay). This guide explains the correct process, in a technical but clear way.
A proper termination includes: notice (or indemnity in lieu) + final settlement + documentation. When in doubt, do it formally and keep records.
1Two different cases: resignation vs dismissal
Termination can happen in two main ways:
- Resignation: the worker decides to leave.
- Dismissal: the employer decides to end the contract.
Even when the relationship is informal and family-based, domestic work is still employment. The best approach is traditional: clarity, written communication, and proper settlement.
2Notice period (or indemnity in lieu)
In domestic work contracts, termination usually requires a notice period. If notice is not given (or cannot be fully worked), the party who ends the contract may owe an indemnity in lieu of notice.
- Notice rules depend on the specific contract situation (level, hours, live-in or live-out, length of service).
- Notice should be communicated clearly (written is recommended).
- If notice is not respected, payroll must reflect the indemnity correctly.
3The final settlement: what must be paid
When employment ends, the employer must prepare the final settlement (liquidazione / busta paga finale) including all amounts due up to the last day.
| Item | What it means |
|---|---|
| Last salary | All workdays up to the last day, including regular pay items. |
| Unused paid leave | Any accrued leave not taken must be paid according to the rules. |
| Unused holiday entitlements | If applicable, remaining paid holidays are settled (as per domestic work discipline). |
| Notice indemnity | Only if notice is not respected (fully or partially). |
| TFR | Severance pay accumulated over the years, paid at the end of employment. |
The final settlement is not “one extra payment”. It is the correct closure of the employment relationship: salary, entitlements, and accumulated items.
4Documentation: what to do (and what to keep)
Employers should keep documentation to avoid later disputes. Even in a family setting, this is the professional approach.
- Written notice / termination communication (email or message is already useful).
- Final payslip and settlement calculation.
- Proof of payment (bank transfer or signed receipt).
- Summary of leave taken and leave accrued.
5Special cases (when you must be careful)
Immediate termination (“just cause”)
In serious situations, termination may be immediate (without notice). This is a sensitive area and should be handled with maximum caution and evidence. When in doubt, seek professional advice before acting.
Live-in caregivers and housing
With live-in employment, termination impacts not only work but also living arrangements. It is important to manage timing and communication respectfully and clearly.
The employer pays the last salary but forgets TFR or unused leave. Later the worker asks for it, and the employer has no clear records. This is why a formal settlement is essential.
6Conclusion
Ending a domestic work contract in Italy should be done properly: clear notice, correct final settlement, and documented payments. A traditional organised approach prevents conflict and protects both employer and worker.