Unfair Dismissal in the UK vs Dismissal Rules in Italy: Qualifying Periods, Reasons and Remedies

The biggest legal shock for a UK company hiring in Italy is dismissal. In Great Britain, an employee has normally needed two years’ service before claiming ordinary unfair dismissal, and that is about to change. In Italy there has never been a qualifying period: once probation ends, every dismissal needs a lawful reason from the first day.

The UK position today and from 2027  

Under Part X of the Employment Rights Act 1996, an employee needs a qualifying period of continuous service to claim ordinary unfair dismissal. Gov.uk still states two years (one year in Northern Ireland) for dismissals today. Some reasons, such as pregnancy, whistleblowing or asserting a statutory right, are automatically unfair from day one, and discrimination claims need no service.

The Employment Rights Act 2025 reduces the qualifying period to six months. The Commencement No. 4 Regulations 2026 (SI 2026/559) bring section 25 into force on 1 January 2027, so an employee who started before 1 July 2026 will be protected from that date. Section 25 also removes the statutory cap on the compensatory award from the same date. The Act was amended during its passage: the original “day one” right was replaced by the six-month period. The time limit for tribunal claims is also moving from three to six months.

Once the right applies, the employer must show a potentially fair reason (capability, conduct, redundancy, statutory restriction or some other substantial reason) and act reasonably, usually following the Acas Code of Practice .

The Italian position: a reason, always  

Italian law (Law 604/1966) recognises three grounds for dismissing a permanent employee after probation:

• Giusta causa (just cause) under article 2119 of the civil code: conduct so serious that the relationship cannot continue even for the notice period. Dismissal is immediate, without notice.
• Giustificato motivo soggettivo (justified subjective reason): a significant breach of contractual duties, less serious than just cause. Notice applies.
• Giustificato motivo oggettivo (justified objective reason): reasons linked to the business, such as a role being eliminated. Notice applies, and the employer must show it could not redeploy the person to another available role (the “repêchage” duty developed by the courts).

The dismissal must be in writing and state the reasons (article 2 of Law 604/1966). Poor fit, a change of manager or “we want someone different” is not a reason.

The disciplinary procedure  

For conduct dismissals, article 7 of the Workers’ Statute (Law 300/1970) requires a formal procedure: a specific written charge, a period of at least five days for the employee to respond (orally, with a union representative if they wish, or in writing), and only then a decision. The disciplinary code must be posted where staff can see it, and the CCNL often adds its own steps and time limits. Skipping the procedure can make the dismissal unlawful even when the conduct was real. This resembles the Acas process in spirit but is stricter in form.

Remedies: the Jobs Act and “tutele crescenti”  

For employees hired on permanent contracts from 7 March 2015, Legislative Decree 23/2015 (the Jobs Act) applies. The default remedy for an unjustified dismissal is compensation, not reinstatement. For employers above the size thresholds (more than 15 employees in a unit or municipality, or more than 60 in total), the indemnity is a minimum of 6 and a maximum of 36 months of reference pay (art. 3). The original formula of two months per year of service was struck down by the Constitutional Court (rulings 194/2018 and 150/2020): the judge now sets the amount within the range weighing seniority, company size, the parties’ conduct and other factors.

Reinstatement remains for void dismissals (discriminatory, retaliatory, during maternity protection, or oral) and for disciplinary cases where the alleged fact did not exist. For employers at or below those thresholds the amounts are halved (art. 9), so the range is 3 to 18 months: Constitutional Court ruling 118/2025 struck down the former six-month cap.

Employees hired before 7 March 2015 remain under the older regime of article 18 of the Workers’ Statute, which gives judges more room to order reinstatement.

Time limits to challenge  

An Italian employee must challenge a dismissal in writing within 60 days and then file in court (or request conciliation or arbitration) within a further 180 days (article 6 of Law 604/1966). In the UK, the employee must start Acas early conciliation before the tribunal deadline.

Side by side  

What UK managers should do differently  

• Treat probation as the only low-risk exit window, and decide before it ends. See our probation guide .
• Document performance issues from the start, with dates and specific examples.
• Never dismiss orally or by a quick call. The letter, its reasons and timing matter.
• Consider a mutual agreement signed in a protected forum (for example before the labour office or in union conciliation), which is the Italian equivalent of a settlement agreement.

Performance management under Italian rules  

UK performance improvement plans translate reasonably well, but the purpose shifts. In the UK a PIP builds the evidence for a capability dismissal. In Italy, poor performance can support a dismissal only when it amounts to a significant and attributable breach of the employee’s duties, which courts examine closely; mere disappointment with results is rarely enough. A well-run Italian process sets measurable objectives, gives the tools and time to meet them, records feedback in writing and, if conduct is involved, follows the article 7 procedure. Often its real value is to support a negotiated exit rather than a contested dismissal.

Common mistakes UK managers make  

• Waiting until month five of a six-month probation to raise concerns.
• Using “restructuring” as a label for a performance problem; courts look at the real reason.
• Announcing a dismissal in a video call before the letter is ready.
• Assuming a small team means no protection; smaller employers face lower compensation, not none.
• Forgetting that dismissal during maternity protection or illness within the comporto is void.

What this means if you hire through an EOR  

The EOR is the legal employer, so it runs any disciplinary procedure and issues any dismissal letter, under Italian law and the CCNL. Your role is to give accurate, documented facts early. A UK habit of “let’s just exit them before two years” does not translate: budget for notice, possible compensation and, where it makes sense, a negotiated exit.

Related guides for UK companies  

• Notice periods and PILON vs Italian notice
• Redundancy pay vs TFR and collective dismissals
• Written statement vs Italian contract and CCNL
• Italy vs UK overview and Italian employment contracts

General information, not legal advice. Planning a hire or an exit? Talk to us or check costs in the calculator .