The Italian Job

A mid-level private equity client was terminated from a $10B private equity firm under circumstances implicating complex cross-border US and Italian labor laws involving unauthorized work and “trattamento di fine rapporto”, or italian statutory severance.

Despite 5 years of bonus entitlement and no documented performance issues, the firm withheld the client’s 2026 bonus citing “performance” issues and the ‘discretionary' nature of the firm’s bonus policy.

We then highlighted exposure the firm hadn’t considered or priced into the severance offer. Among other issues, the firm’s relocation of the client to Milan for a 10-month engagement created cross-border jurisdictional hooks related to work-visa noncompliance the firm had not considered, including an additional source of severance compensation—TFR, trattamento di Fine rapporto, Italy’s mandatory deferred severance pay. Employers are legally required to set aside a portion of earnings each month, which is paid to employees at termination. This created a statutory entitlement that, if exercised, would cast light on a number of irregularities related to the Milan assignment and the firm’s disclosure obligations.

After a month of negotiations, we secured a 228% increase from the original $43,000 offer resulting in a severance package valued at $141,000 including improved carry interest from 60% to 100%.