Paid leave, sick leave and TFR: the essentials for domestic work employers (Italy)
In Italy, domestic work employment includes three important “technical” areas: paid annual leave, sick leave, and TFR (severance pay). They are often misunderstood by foreign employers, but the logic is simple: document clearly, pay correctly, and keep records.
If you are setting up or managing a domestic work contract, you may also want to read our guide on hiring a domestic worker in Italy and our guide on how to pay wages correctly and keep proof of payment .
Paid leave is planned and paid. Sick leave must be managed with proper communication and documentation. TFR is a deferred amount that accumulates every year and is paid at the end of employment.
1Paid annual leave (ferie): what it means
Paid annual leave is a worker’s right to rest while continuing to receive salary. It must be planned and recorded. In domestic work, planning is particularly important because the employer’s home must still function.
- Agree on leave dates in advance whenever possible.
- Record the leave period in your payroll / records.
- Pay the correct salary components during leave (as required by the domestic work rules).
- Keep written confirmation (even a simple message) to avoid misunderstandings later.
2Sick leave (malattia): what the employer must do
Sick leave is different from paid leave: it is not planned. The important points for the employer are: communication, documentation, and correct payroll management.
A common mistake is handling sick leave “informally”. If later there is a dispute, the employer must be able to prove dates, payments, and correct management.
Practical rules (technical but simple)
- Ask the worker to inform you as soon as possible.
- Record the period of illness (start and end dates).
- Manage salary according to the applicable rules (duration, percentages, obligations may depend on circumstances).
- Keep any medical or formal communication available (where legally required / provided).
3TFR (severance pay): the concept many foreigners miss
TFR (Trattamento di Fine Rapporto) is a deferred amount that accumulates during employment. It is not a bonus and it is not optional. Think of it as a yearly accrual that belongs to the worker and is usually paid when the employment ends.
- TFR accrues every year during employment.
- It is based on salary components defined by domestic work rules.
- It must be recorded and calculated correctly.
- It is normally paid at the end of employment, unless specific advance payments are allowed and properly documented.
TFR becomes especially important when the employment relationship ends. For the final calculation and documentation, see our guide on ending a domestic work contract in Italy: notice and final settlement .
4Documentation: your strongest protection
Domestic work is personal and trust-based, but documentation is essential. The safest approach for employers is traditional and disciplined: write down agreements, keep payslips, and store proofs.
| Item | What to keep |
|---|---|
| Paid leave | Dates agreed + payroll record showing leave period. |
| Sick leave | Dates, worker communication, payroll handling, any formal medical proof when provided. |
| TFR | Annual calculation record and final settlement proof when employment ends. |
Salary records and contribution records should stay together. For contribution payments, read our guide on INPS contributions for domestic workers: how payments work .
5Common mistakes (and how to avoid them)
- No records: agreements are verbal and later disputed.
- Wrong payroll assumptions: treating leave or sick leave like normal workdays.
- TFR ignored: employer discovers it only at the end and faces an unexpected cost.
Keep a small “employment folder” (digital or paper): payslips, communications, leave dates, sick periods, contribution proofs, and a simple TFR record. In domestic work, order prevents conflict.
If the worker is a caregiver, organisation also depends on the employment model. See our guide on live-in vs live-out caregiver in Italy .
6Conclusion
Paid leave, sick leave and TFR are not complicated when you keep the logic clear: plan leave, manage sick leave with documentation, and record TFR as an annual accrual. Employers who stay organised avoid most problems.
7Related guides
- Hiring a domestic worker in Italy: the essentials
- How to pay wages correctly and keep proof of payment
- Ending a domestic work contract in Italy: notice and final settlement
- INPS contributions for domestic workers: how payments work
- Minimum wages for domestic workers in Italy: official figures only
- Live-in vs live-out caregiver in Italy: costs and what to choose