Monaco: Resignation & Termination

 

(As of 09.2025)

For Resignation:
For Monaco is 1m and if you are "cadre" (manager) is 1.5m
or if you have a contract CDI that has a clause then its as per that otherwise the general rule.

For Termination:
https://legimonaco.mc/tnc/loi/1963/03-16-729/
In brief,

Length of Service	Minimum Notice Period
Less than 6 months	1 week
6 months to less than 2 years	1 month
2 years or more	2 months

The notice period begins the day after the notification of termination is received. During the notice period, the employee is generally entitled to time off to seek new employment, typically two hours per day, without loss of pay.

For any dismissal, the employer may choose whether the employee works during the notice period.

In either case, employee is entitled to receive the same salary, including any benefits. Thus, in case of exemption from work during the prior notice delay, the employee will be paid in lieu of notice.

Severance pay (2025) (Total calculated amount not to exceed 6M of salary)
Dismissal indemnity is payable unless the dismissal is for gross misconduct (see below). The amount payable is mainly set by the collective bargaining agreement, but must not be less than the French legal dismissal indemnity (25% of the monthly gross salary until ten years of seniority and one third of the monthly salary as of the tenth‘s year).
Indemnity is also payable for unused accrued paid holidays and for the notice period if the employer chooses to release the employee from performing it.

Example 12y:
- The 2-month notice period begins on the 1st presentation of the dismissal letter by mail.
- If delivered by hand: the letter must be dated and signed and the notice must be given. Starts the next day

At the end of the notice period, make available to the employee:

> The last payslip with the payment of the remaining paid leave
+ payment _des severance pay (BASIS: Average of 12 last equal months OR the last 3 months: Whichever is the most favorable to the employee;

Formula:
1/4 (0.25) of the gross monthly salary per year of seniority up to 10 years of seniority, and
1/3 (0.33) of the gross monthly salary for each year of seniority …

For a 10K salary is ~12K gross

so 12K/0.25 = 3000 * 10y = 30K

then 12K/0.33 = 3960 * 2y (from 5y+2y) = 7.9K

Total to be about 37.9K severance pay + 2 months salary for the last 2 months notice + any paid vacation not taken

Termination With Cause

Termination with cause typically refers to dismissal for reasons related to the employee's conduct or performance. This includes:

Serious Misconduct (Faute Grave): Behavior that makes the continuation of the employment relationship impossible, even during the notice period. Examples might include theft, insubordination, violence, or serious breaches of company policy. Termination for serious misconduct usually allows for immediate dismissal without notice period or severance pay.

Gross Misconduct (Faute Lourde): Similar to serious misconduct but implies an intention to harm the employer. This is less common but also justifies immediate dismissal without notice or severance.

Insufficient Performance: Repeated failure to meet job requirements despite warnings and opportunities for improvement. This typically requires documented evidence of performance issues and corrective actions taken by the employer.

Termination Without Cause

Termination without cause occurs for reasons unrelated to the employee's fault. Common grounds include:

Economic Reasons (Redundancy): Termination due to the company's economic difficulties, restructuring, or technological changes leading to the elimination of positions. Specific procedures and criteria apply to collective redundancies.

Suppression of Position: The role is no longer necessary due to organizational changes.

Inaptitude: The employee is unable to perform their job duties due to illness or disability, provided reasonable accommodations cannot be made.

Terminations without cause require adherence to notice period requirements and payment of severance pay if the employee meets the service threshold.