An employer who dismisses an employee enjoying increasing protections can make a settlement offer at the time of the administrative proceedings or when dealings with trade unions and authorities within 60 days from dismissal, for the sole purpose of avoiding lawsuits. The settlement offer would be in the amount of one month’s salary as per the last reference salary for the calculation of the employee severance indemnity, for each year of service provided, and however in the amount of not less than 2 and not more than 18 month’s salary. This amount does not constitute taxable income for tax purposes and it is not subjected to social security contributions. The employer, within 65 days from employment termination, shall also issue a supplementary notification regardless of whether or not the settlement took place, under penalty of a fine (from 100 to 500 euros).
