The main pieces of legislation relating to labour law in Monaco are as follows :

• Act no. 729 of 16 March 1963 concerning employment contracts,
• Act no. 739 of 16 March 1963 concerning salaries;
• Act no. 845 of 27 June 1968 concerning termination or severance pay for employees
• Ordinance-Law no. 677 of 2 December 1959 as amended by Act no. 1067 of 28 December 1983 concerning working hours,
• Act no. 629 of 17 July 1957 regulating the conditions for recruitment and dismissal in the Principality.

Other sources of labour law include the Collective Labour Agreements that bind the employer organisations and trade unions that sign up to them, but which can, pursuant to article 22 of Act no. 416 of 7 June 1945, be extended and made binding by Ministerial Decree, on all employers and firms that belong to the areas of professional activity included in its scope.

The legislation relating to labour law is not codified. Legislation in this area is less tightly regulated than in France and consensus prevails at the point at which someone is hired: this is considered valid as long as the parties have reached even a verbal agreement on the key elements, the actual work, working hours and compensation.

Before hiring a foreign employee, however, the employer must obtain a work permit from the Department of Employment. In addition, hiring priority for access to private-sector jobs is given to nationals and then to certain categories of resident and the Department of Employment must ensure compliance with these rules before issuing a work permit.

Disputes relating to the termination of an employment contract fall within the exclusive jurisdiction of the Employment Tribunal, which is made up of equal numbers of representatives from employer organisations and trade unions, but is chaired by a professional judge, the Justice of the Peace. There is extensive case law relating to this type of dispute.

Our team of specialists is on hand to advise you throughout the life of an employment contract, from negotiating recruitment terms and support during its performance, right through to the end of the contract, regardless of the type of termination concerned.