What is the TFR and when must it be paid?
The TFR (trattamento di fine rapporto) is effectively deferred salary — a portion of earnings set aside each year and paid as a lump sum when the employment ends, whether through dismissal, resignation, retirement or agreement.
By law, the TFR must be paid at the end of the employment relationship. The employer does not have a legal right to spread payment over time unilaterally.
When can the TFR be paid in instalments?
Only in two circumstances:
- The employee explicitly agrees to instalment payment in writing
- The employer is in a verified state of financial difficulty — in which case specific rules apply and the INPS Guarantee Fund may intervene
An employer who pays in instalments without the employee's consent — or who simply delays payment without a lawful reason — is committing a breach of contract and is liable for interest and damages.
The INPS Guarantee Fund: your backstop if the employer can't pay
If the employer is insolvent (bankruptcy, compulsory liquidation, debt restructuring), the employee can apply to the INPS Fondo di Garanzia to recover the TFR directly. The state pays the employee and then seeks recovery from the employer's estate in the insolvency proceedings.
The application must be submitted to INPS with documentation of the insolvency procedure and evidence of the TFR entitlement.
What to do if your TFR is not being paid
First, send the employer a formal written demand (diffida). If no payment follows, you can file a labour court claim — TFR claims are handled on an expedited basis (rito sommario). You can also ask a trade union or patronato for free assistance. Interest accrues on unpaid TFR from the date it became due.