END-OF-SERVICE ALLOWANCE

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ITALY
TRATTAMENTO DI FINE RAPPORTO
END-OF-SERVICE ALLOWANCE

Payment which has replaced the seniority allowance following the adoption of Law No. 297 of May 29, 1982.

In contrast to the system used for the seniority allowance, the method of calculating the end-of-service allowance is based not on the last level of pay multiplied by the number of years of service with the same employer, but on the sum total of portions of the employee's pay set aside every year in accordance with criteria laid down by the Law. These calculation criteria have neutralized the multiplying effect of seniority in fixing the allowance.


Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.