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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Monaco refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Employees in Monaco are typically paid monthly. However, there are some employers who may choose to pay their employees weekly or biweekly. The payment frequency is usually specified in the employee's contract of employment.

The Labour Code of Monaco does not specify a payment frequency, so it is up to the employer to decide how often to pay their employees.

There is no statutory requirement to pay the 13th or 14th month's salary.

The national minimum wage (SMIC) is set at € 11.52gross.

All employees are entitled to overtime pay should they work beyond 39 hours a week following the employer’s request.

This overtime, which is calculated by calendar week, entitles the employee to the following wage increases:

• 25% for the first eight hours, and
• 50% for any subsequent hours.

It is not specifically regulated by law. However, there are a number of general principles that businesses should follow when collecting and storing data.

Monaco law provides a list of people benefiting from employment priority status. They are, in order of priority:

1. Individuals of Monaco nationality;
2. Children or spouses of individuals of Monaco nationality;
3. Residents of the Principality of Monaco; and
4. Residents of the surrounding communes (Cap d’Ail, La Turbie, Beausoleil, and Roquebrune-Cap-Martin) who have already been employed in Monaco.

As a consequence, every job offer must be submitted to the Employment Office, which will then put forward the suitable candidates who have priority status in terms of employment in Monaco. 

Employers are allowed to hire candidates with no priority status after receiving priority candidates if the latter does not comply with the company’s needs.

• Personal Details(Name, Surname, address, Date of Birth) 

• Education Certificates  

• Proof of Identity 

• Proof of Residence 

• Work Permit  

• Medical Certificate 

• CV 

• Bank Account Details 

The Employer may also ask for a Drug test or background check document.

The duration of a probationary period is limited by law to three months. The parties are allowed to contract for a shorter duration, with renewal as the case may be, subject to the maximum limit of three months.

National Holidays

• January 1 - New Year’s Day
• January 27 - Saint Dévote's Day
• April 13 - Easter Monday
• May 1 - Labor Day
• May 21 - Ascension Day
• June 1 - Whit Monday
• June 11 - Corpus Christi
• August 15 - Assumption of Mary
• November 2 - All Saints' Day
• November 19 - National Day of Monaco
• December 8 - Feast of the Immaculate Conception
• December 25 - Christmas Day

The employee has the right to 2.5 working days of paid leave per month of actual work completed. The period of the leave must not exceed 30 days.

The law does not provide a right to sick leave; however, it protects employees during sick leave, as the illness cannot be a valid ground for dismissal, and provides rules for sick pay.

Active employees are entitled to benefits from daily allowances from the Social Security Department (CCSS) during sick leave. The amount of the daily sickness benefit is, in most cases, equal to half the average gross daily salary received by the employee over the 12 previous months within a limit fixed annually.

In addition, according to the Monaco National Collective Agreement Convention and after two years of seniority, employees must receive a replacement income, which is paid by the employer.

This compensation represents 90% of the gross salary with a deduction of the daily sickness pay by the CCSS, which results in approximately a difference of 40% of the salary paid by the employer.

This payment is subject to providing a medical statement within 48 hours and confirmation of the employee’s benefit health assurance by the CCSS.

This compensation for the employee runs:

From the first day of absence if it is owing to an accident at work or an occupational disease, excluding commuting accidents; from the fourth day of absence when the condition on which it was based resulted in both hospitalization of any duration and a stoppage of work of at least three weeks, and from the 11th day of absence in all other cases.

The maternity leave policy in Monaco is governed by the Labour Code of Monaco. The law provides for 16 weeks of maternity leave for all employees, regardless of their length of service.

Maternity leave can be taken before or after the birth of the child. The employee must give their employer at least one month's notice of their intention to take maternity leave.

The maternity leave is paid by the state. The amount of paid maternity leave is equal to 80% of the employee's salary.

The employer is not allowed to dismiss an employee during their maternity leave.

The specific benefits available to pregnant women and new mothers in Monaco may vary depending on their employment status and other factors. It is important to check with the relevant authorities for more information.

Here are some additional things to keep in mind about maternity leave in Monaco:

• The maternity leave can be extended in certain circumstances, such as if the child is born prematurely or if the mother has complications during childbirth.
• The maternity leave can be taken part-time if the employer agrees.
• The maternity leave can be transferred to the father if the mother is not able to take it.

If you are an employee in Monaco who is pregnant or who has recently given birth, you should be aware of the maternity leave policy and the other benefits that are available to you. You should also check with your employer to see what additional benefits they may offer.

Sundays and public holidays included, the leave period covered is:

• 12 days in the case of a single birth,
• 19 days in the case of multiple births or if the household already has two dependent children as defined in the legislation on family benefits.

Leave may be taken in part or in its entirety but cannot be split.

Commencement of the leave

The father is free to choose the start date of the paternity leave at any time from the birth to the newborn's four-month birthday. This deadline can be extended in the event that the child is hospitalized.

Sundays and public holidays included, the leave period covered is:

• A maximum of 8 weeks for the adoption of a single child,
• A maximum of 10 weeks if the household already has two dependent children, or in the case of multiple adoptions.

Adoption leave can be split between both parents.

In this case, the parents can receive the benefits separately or concurrently, provided that the total number of days for which they receive the benefits does not exceed the leave period above.

Commencement of the leave

The start date for the adoption leave must coincide with the child's arrival at the household or, where applicable, be within seven days prior to this arrival.

In the case where the leave period is shared between both parents, the leave start date cannot be prior to the child's arrival in the household or the seven days preceding this arrival. It can however be after the child's arrival if the overall adoption leave, shared between both parents, satisfies the conditions for the start and duration of the leave.

• Marriage Leave:

  An employee is entitled to paid leave of:

  • Four days for his/her wedding
  • One day for the wedding of his/her son or daughter
• Bereavement Leave:

  An employee is entitled to two days' paid leave in the event of:

  • The death of his/her spouse
  • The death of one of his/her children
  • The death of one of his/her parents
  • The death of one of his/her brothers or sisters
  • The death of one of his/her grandparents
  • The death of one of his/her grandchildren

  An employee who has worked for the company for at least three months is also entitled to one day's leave in the event of the death of his/her parent-in-law.

The notice period in Monaco is determined by the length of service of the employee. The following are the notice periods that apply in Monaco:

• Less than six months: No notice period is required.
• Six months to less than two years: one month's notice is required.
• 2 years or more: 2 months' notice is required.

The notice period can be longer if it is specified in the employee's contract of employment. If an employee fails to give the required notice period, they may be liable to pay their employer damages.

The employer is also required to give notice to an employee who is being terminated. The notice period is the same as the notice period that would be required from the employee. However, the employer can choose to pay the employee in lieu of notice.

The amount of severance pay that an employee is entitled to in Monaco depends on their length of service. The following are the severance pay rates that are set by the Labour Code of Monaco: 

• Less than six months: No severance pay is due.
• Six months to less than two years: one month's salary per year of service. 
• Two years or more: 1.5  months salary per year of service.

The severance pay is calculated based on the employee's last monthly salary. If the employee was on probationary leave, the severance pay is calculated based on the salary that they would have received if they had been hired permanently. 

The severance pay is paid to the employee on the termination of their employment. If the employee is dismissed for gross misconduct, they are not entitled to severance pay. 

The Labour Code of Monaco also provides for additional severance pay for employees who are over the age of 50 or who have been with the same employer for more than ten years. In these cases, the employee is entitled to an additional month's salary for each year of service over the age of 50 or over ten years. 

The documents required to obtain a work permit are:

1. Completed application form
2. Valid Passport
3. Recent passport pictures
4. Police Clearance Forms
5. Travel Itinerary
6. Proof of property ownership in Monaco or rental lease
7. Documents supporting your reason for the application, for example, marriage certificate, authorized work contract, proof of sufficient means to live in Monaco without work, etc.
8. A letter of appointment (in the form of an undertaking of employment stamped by the Employment Service in order to obtain a residence permit issued by the Department of Public Safety)
9. The agreement of the Department of Public Safety, as well as the Occupational Health Office, is necessary to obtain a work permit (for employees that are unknown in the Principality or who have stopped working for a period of 6 months)
10. Visa fees

All foreign nationals - that is, non-Monegasques - are required to obtain a work permit (Permit de travail) before they take up any job in Monaco. 

Under Monegasque law, local people with the same qualifications have priority.

If a candidate within these criteria cannot be found, the employer may then propose its own candidate.

To obtain a work permit, the employee must submit their contract of employment stamped by the employment service, along with proof of residence and personal identification, to the Service de l'Emploi.

There are no specific restrictions or prohibitions against background checks on candidates. Checks could be managed in the same way by a recruitment agency or the employer itself. 

The only general limit to these investigations would be the right to respect private and family life. This constitutional right implies that any breach of a person’s privacy must be proportionate to a legitimate goal. In other terms, any research made into previous jobs held or a person’s criminal record must be considered legitimate. Investigation into family status, for example, would be considered an abusive breach of the right to privacy. 

Medical examinations

Medical forms or medical examinations (depending on the job position concerned and the employee’s age), as a condition of employment, are more than a simple opportunity given to the employer; they are a legal requirement in obtaining a work permit. The examination, either at the hiring date or within the first three years of employment, is carried out by the occupational physician who advises on medical fitness or unfitness.

Drug and alcohol testing

There is no legal provision regarding drug testing within a company. Alcohol testing could be provided by internal regulation of the company, subject to prior approval of the labor inspector and for a limited list of employees.

Before employment, an employer is free to hire or not hire any employee on the basis of its own criteria, including drug use, but may not use discriminatory criteria (religion, gender, etc.). Nevertheless, if a recruitment commitment has been made in writing, the breach of this engagement on the basis of the future employee’s refusal to undertake drug testing may be considered as abusive, depending on the nature of the job.