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.
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.
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. |
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.
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.