The probation period is defined by Monaco employment law as a trial period at the beginning of employment, when the employee and employer can test the compatibility of their future commitments.

It is regulated by the Monegasque Labour Code, the collective agreements, and the industry regulations. During the probation period, the employee’s skills and adaptation to the work environment are evaluated by the employer. At the same time, the employee decides if the new job is what they expected.

Definition of a Probation Period in Monaco

The probation period in Monaco is a duration agreed upon in the employment contract that allows both the employee and employer to evaluate their suitability for each other. It must be clearly stated in the contract, including its duration and any specific conditions.

While the employee is protected by employment laws during the probation period, there may be certain flexibilities allowed, such as an easier termination process, as per Monegasque law.

At the end of the probation period, if not terminated, the employment relationship is presumed to continue under the same conditions as originally agreed in the contract.

Lengths of Probationary Periods in Monaco

Monaco law does not provide for a fixed probationary period but only states that the duration of such a period will be dependent on the nature of the employment and the prevailing industry standards.

Generally, probation periods can last between one and three months maximum. For management-level positions, probation periods can be longer, up to 6 months. The exact duration of the probation period must be agreed upon in the employment contract. 

Renewal of the probation period must be agreed in writing by both the employer and the employee, and can’t exceed the maximum limit mentioned above.

Permanent or Indefinite Contracts

Monegasque law governing permanent or indefinite employment contracts (contrat à durée indéterminée or CDI) sets the maximum probation periods at one to three months for non-managerial positions and can be up to six months for managerial ones.

In some sectors, the collective bargaining agreement may apply different rules. The employer must therefore always verify which agreement is applicable in the sector.

Any renewal of a probationary period must be agreed in writing in the employment contract and may not exceed the maximum duration provided for by law or the applicable collective agreement.

Fixed-Term or Definite Contracts

Probation is shorter and must be proportionate to the contract length for fixed-term contracts (contrat à durée déterminée or CDD).

The overall maximum is subject to limitations for a CDD. When the contract is less than 6 months, the probationary period generally cannot exceed 1 week per month of employment. And subject to an overall maximum when the CDD is 6 months or more, the probationary period can be more, but it still has an overall maximum.

There is a cap similar to the permanent roles, but it is generally shorter. Limits and durations may be detailed in a collective agreement. Employers must ensure they follow the above rules to ensure probation is fair and proportionate to the contract term.

Legal Considerations for Probation Periods in Monaco

In Monaco, a probation clause must be written into the employment contract, and the conditions and duration prescribed by law or collective agreements must be respected. It can be renewed only if provided for in the original contract, allowed by agreements, and each time justified and subject to a maximum legal duration.

Employees get all of their rights during probation, including safe working conditions, pay, which may not be less than the minimum wage, accrual of paid leave entitlement, and coverage by social security from the first day of work. The employer may test the suitability of an employee, but a decision must be objective, non-discriminatory, and for a valid reason.

Pay and Working Conditions

The employee is paid at the same rate during the probationary period as they would be after successful completion of the probationary period. The same also applies to working conditions in Monaco. The statutory minimum wage (Salaire Minimum Interprofessionnel de Croissance or SMIC) applies during the probationary period.

The current SMIC rate is about €12.02 gross per hour. The employee is also entitled to all other statutory rights, such as paid rest breaks, workplace protection rights, social security, and all other employment rights as provided for by law in Monaco.

Termination and Notice

Termination during the probation period in Monaco is generally less restrictive than after confirmation, but must still comply with specified notice requirements. The employer and employee are both required to respect these notice periods.

The notice periods in Monaco are intended to give the employer and employee time to make arrangements for the termination of the employment relationship. No severance pay is required if the notice period is respected, but the employee is entitled to any accrued pay and benefits.

Notice periods during probation in Monaco are as follows:

Length of ServiceNotice Period
Less than 8 days24 hours
8 days to 1 month48 hours
More than 1 month up to maximum probation period2 weeks
Longer probation periods (e.g., executives) or as per collective bargaining agreement1 month

Vacation / Holidays

The employee has the right to accumulate holidays and days off during the probationary period in proportion to the time worked. The legal right to paid leave in Monaco is 2.5 days per month of work.

Where an employment relationship is terminated before leave is taken, the employer must pay the employee for the unused holiday. This should appear on the final pay-slip as per the labour laws.

Benefits of Probation Periods in Monaco

Probation periods can have numerous advantages for employees and employers in Monaco. These benefits can lead to more informed and mutually beneficial employment relationships in the long term.

  • For Employees

Understand their new role, responsibilities, and the workplace environment first-hand.

Make an informed decision about the long-term employment relationship after experiencing it.

Prove their skills to the employer.

  • For Employers

Evaluate the employee’s professional skills, adaptability, and overall suitability.

Decide about hiring before entering into long-term employment.

End the contract may be with a shorter notice period and fewer formalities, if necessary.

Conclusion

The probation period in Monaco provides employers and employees with an opportunity to make sure they are the right fit for each other before entering a long-term commitment.

Employers get a chance to evaluate the employees’ skills and overall suitability for the job, while employees may have peace of mind in terms of the actual work matching their expectations. When conducted following Monaco’s labor laws and regulations, a probationary period in Monaco is a great way to start a healthy working relationship.

If you are an employer hiring in Monaco, consider working with us at Remote People. We can help you hire in Monaco whilst adhering to its probation period laws so you can trial new talent easily and compliantly.

Frequently Asked Questions

The employer can terminate the contract if the employee's work, skills, or suitability for the job is unsatisfactory. The reason must be non-discriminatory and genuinely based on the assessment. Gross misconduct may result in immediate termination without notice.

Yes, but usually a shorter notice period than the one needed for permanent employees. Length depends on years of service (one day to two weeks). Must follow the contract or collective agreement. If the required notice is given, there is no additional entitlement to severance pay other than salary and benefits accrued.

An employer who has not respected the notice, unless the termination is based on serious misconduct, is liable to pay the employee compensation equal to the pay for the notice period not served. The employee can also challenge the termination in court if it infringes their rights.