Italian labor trends: employee turnover costs and dismissal rulings

An analysis by Valtellina Lavoro indicates that employee resignations impose significant financial burdens on companies. The cost of replacing a worker, which includes recruitment, training, and lost productivity, is estimated to range between 30% and 50% of the employee's gross annual salary (RAL). For a worker earning €35,000, this represents a loss of €10,500 to €17,500.

Separately, the Italian Supreme Court (Cassazione) has upheld the legality of dismissal for cause in cases where employees engage in secondary employment during official working hours. In a specific 2024 ruling involving a railway employee, the court confirmed that using company resources and time to manage external businesses—such as a travel agency and a bed and breakfast—constitutes a breach of the duty of loyalty required by Article 2105 of the Civil Code.