Employment law in San Marino
Employment law in San Marino is governed by a combination of national legislation and principles derived from Italian law, as the country shares many legal and cultural ties with Italy. However, San Marino has its own independent legal system, and the Labour Code (Codice del Lavoro) plays a central role in regulating employment matters. San Marino is also a member of international organizations such as the International Labour Organization (ILO), which influences some aspects of employment law.
Key Aspects of Employment Law in San Marino:
Employment Contracts:
Types of Contracts: Employment contracts in San Marino can be fixed-term or indefinite-term. The indefinite-term contract is the most common for permanent employment, while fixed-term contracts are typically used for temporary or seasonal work.
Written Agreement: The Labour Code requires that employment contracts be written and should clearly specify the duration (for fixed-term contracts), job description, salary, working hours, and any other relevant terms. Although verbal agreements are valid, written contracts help avoid disputes.
Probation Period: Employees may be hired with a probationary period. During this period, either party can terminate the employment with a shorter notice period. The length of the probation period can vary, but it is typically up to 3 months.
Working Hours and Rest:
Standard Working Hours: The standard workweek in San Marino is generally 40 hours, typically spread over 5 days (8 hours per day). Some sectors may have different workweek structures.
Overtime: Overtime is allowed in certain circumstances, particularly when employees work beyond the established 40-hour workweek. Overtime should be compensated, and employees are entitled to a higher rate (usually 1.25 or 1.5 times their standard hourly wage).
Rest and Breaks: Employees working more than 6 hours per day are entitled to a break of at least 30 minutes. Workers are also entitled to 1 day off per week, typically Sunday, unless otherwise agreed upon.
Minimum Wage:
No Official Minimum Wage: San Marino does not have a national minimum wage law. Instead, wages are generally determined by collective bargaining agreements (CBA) or individual employment contracts, particularly in sectors with trade unions. These agreements set the minimum pay levels for employees in specific industries or positions.
Wages: It is common for employers to provide compensation that aligns with the general living standards of the country and the collective agreements in place.
Paid Leave:
Annual Leave: Employees are entitled to at least 4 weeks (20 working days) of paid annual leave. In some cases, employees may be entitled to more leave depending on the terms of their contract or collective agreements.
Public Holidays: San Marino recognizes various public holidays, and employees are entitled to paid leave on these days. If employees work on a public holiday, they should be compensated with additional pay (usually double time or an alternative day off).
Sick Leave: Employees are entitled to sick leave, typically paid by the social security system. The length of sick leave and payment levels depend on the employee's contribution to the social security system, and typically, employees may be entitled to 50% to 75% of their regular salary after a certain waiting period.
Maternity and Parental Leave:
Maternity Leave: Female employees are entitled to 20 weeks of maternity leave (which is typically divided into 8 weeks before and 12 weeks after the birth). The leave is paid at a rate of 80% of the regular salary and is covered by the national social security system.
Parental Leave: While there is no specific statutory parental leave for fathers, some employers may offer paid or unpaid parental leave based on collective agreements or individual contracts.
Termination of Employment:
Dismissal: Employment can be terminated for reasons such as misconduct, poor performance, redundancy, or economic necessity. Employers must follow proper procedures, provide a valid reason, and adhere to the notice periods outlined in the employment contract.
Notice Period: The notice period for termination of employment depends on the length of the employee’s service:
Up to 1 year: 1 month’s notice
More than 1 year: 2 months’ notice
Severance Pay: Employees who are dismissed for reasons other than misconduct or voluntary resignation may be entitled to severance pay, which is calculated based on length of service and salary. The severance amount may vary according to the collective bargaining agreements in place.
Social Security and Benefits:
Social Security Contributions: Both employers and employees are required to contribute to San Marino’s social security system, which covers pensions, healthcare, unemployment benefits, and other social benefits.
Health Insurance: Employees in San Marino are generally covered by the national health insurance system. Employees and employers contribute to this system through payroll deductions, ensuring access to public healthcare services.
Pensions: San Marino’s social security system also provides for old-age pensions, which employees can access when they reach the statutory retirement age. Contributions to the pension system are deducted from employees’ wages.
Employee Rights and Protection:
Anti-Discrimination: Discrimination in the workplace is prohibited based on gender, race, ethnicity, religion, disability, or other protected characteristics. Employees are entitled to equal pay for equal work and protection against harassment and unequal treatment.
Health and Safety: Employers are required to ensure a safe and healthy working environment for employees. The law mandates that workplaces adhere to health and safety standards, and employees have the right to work in environments that do not pose health risks. Employees can refuse unsafe work without penalty.
Trade Unions: Employees in San Marino have the right to form and join trade unions. Unions play an important role in representing employees, negotiating collective agreements, and advocating for workers' rights.
Workplace Disputes:
Dispute Resolution: Disputes between employers and employees are typically resolved through mediation or arbitration. If the dispute cannot be resolved informally, it may be taken to the Labour Court for a legal ruling.
Labour Court: San Marino has a Labour Court that handles employment-related disputes, including wrongful dismissal, unpaid wages, or violations of employment rights.
Foreign Workers:
Work Permits: Foreign nationals wishing to work in San Marino must obtain a work permit. Employers must apply for a work permit on behalf of the foreign worker. San Marino’s system for work permits is closely aligned with Italy’s immigration and labor policies.
Employment Rights: Foreign workers in San Marino are entitled to the same basic rights and protections as local workers, including the right to fair pay, working conditions, and social security benefits.
Conclusion:
Employment law in San Marino is based on a strong framework designed to protect the rights of employees while balancing the needs of employers. The Labour Code provides for fair working conditions, including minimum leave, protections against discrimination, and regulations regarding dismissal, overtime, and wages. San Marino also has strong social security systems that cover pensions, healthcare, and other benefits for employees.
Employers and employees should ensure that they understand the provisions of the Labour Code and any applicable collective bargaining agreements to avoid disputes and ensure compliance with the law.
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