How to Handle Disciplinary Issues and Termination in Monaco A Guide for Families with Private Household Staff

Managing private staff in Monaco requires structure, discretion, and mutual trust. While most household employment relationships are long-term and loyal, every employer may eventually encounter a difficult situation. Whether an employee has failed to follow instructions, shown a lack of communication, or acted inappropriately, families often ask: What are my rights? And how do I act fairly but firmly?

This article offers a clear, legally informed overview of disciplinary procedures and termination options available under Monegasque law for private household employers.

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When Things Go Wrong Proportionality is Key

Monaco’s labour framework recognises that employers must be able to manage performance and discipline. However, any response must be proportionate. Minor issues may call for a conversation. Repeated or serious breaches may justify formal warnings or dismissal.

Common concerns include:

•⁠ ⁠Repeated lateness without explanation
•⁠ ⁠Failure to follow clear instructions
•⁠ ⁠Lack of communication before or during absences
•⁠ ⁠Inappropriate behaviour towards family members or other staff
•⁠ ⁠Misuse of household resources or privacy violations

Disciplinary Tools Available to Employers

Verbal conversation

For minor concerns or one-time mistakes, a calm conversation may be all that is needed. While not formally recorded, it can serve to reset expectations. Employers often follow up with a brief note in their own files.

Written warning known as an avertissement

If the issue is more serious or has occurred before, a written warning may be appropriate. This is recognised under Monaco labour law and can serve as a formal first step toward further action if needed.

The letter should:

•⁠ ⁠Set out the facts clearly and objectively
•⁠ ⁠Refer to any breached clauses in the contract
•⁠ ⁠State that it is a formal warning
•⁠ ⁠Make clear what behaviour must change
•⁠ ⁠Warn that future issues may result in termination

The warning should be dated and signed, and delivered in a verifiable way. This can be by registered mail or in person, with a witness present who co-signs the delivery. A copy should be retained for your records.

 

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What the Law Says About Fault

Under Article 6 of Law 729, a permanent employment contract known as a CDI may be terminated by either party at any time. However, the nature of the employee’s conduct determines whether notice and compensation are required.

Monaco law defines three levels of fault:

Faute simple
A minor or isolated issue. This may justify a written warning or, if repeated, termination with notice and payment of standard entitlements.

Faute grave
A serious breach that renders continued employment impossible. This allows for immediate dismissal without notice or severance. Examples may include serious neglect, abandonment of post, or repeated insubordination.

Faute lourde
An act committed with intent to harm the employer. This is rare but may include theft, violence, or wilful damage. The consequences include immediate termination and potential legal action.

Employers should be able to demonstrate the severity of the misconduct and act without delay.

 

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Termination After the Probation Period

Once the employee has passed the probation period, which typically ranges from one to three months, termination requires adherence to Monaco’s notice and compensation rules unless the fault is grave or gross.

Standard notice periods are:

•⁠ ⁠One month for employees with six months to two years of continuous service
•⁠ ⁠Two months for employees with more than two years of service

The employer may allow the employee to work during the notice period or pay it in lieu. Any unused holiday must also be paid out. If the dismissal is for faute grave or faute lourde, no notice or severance is owed.

It is important to act promptly. Undue delay can weaken a claim of serious misconduct and may lead to the dismissal being contested.

Understanding Misconduct Context Always Matters

Every situation must be assessed in light of the facts, the consequences, and any previous incidents. Below are a few practical examples:

Failure to notify an absence
If an employee does not show up and makes no effort to inform the employer, it may be considered faute grave. However, if the employee provides a medical note and attempted to send word, a written warning may be more appropriate. Past behaviour and communication history are also relevant.

Refusal to follow instructions
If a staff member refuses a reasonable request, such as preparing a child’s lunch or assisting with packing for travel, this may be a breach of contract. If it happens more than once or is done with defiance, dismissal may be justified.

Misuse of household property
Taking the family car without permission, using the employer’s credit card for personal purchases, or accessing private spaces of the home are all potentially serious. Whether the fault is simple or grave depends on intent and the impact on trust.

Unprofessional conduct
Being rude to guests, dressing inappropriately, or speaking disrespectfully to other staff can reflect poorly on the family. If previously warned, this type of conduct may escalate to a disciplinary sanction or dismissal.

Each case must be reviewed on its own merits. Monaco’s courts will look at proportionality and timing, particularly if the termination is challenged.

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How Platinum Nanny Can Support You

Platinum Nanny supports families not only in the recruitment of outstanding staff but also in the day-to-day realities of managing private households.

Our services include:

Executive PA and Private Office Support
Diary management, inbox control, travel coordination, and confidential personal administration

Project and Lifestyle Management
Oversight of property renovations, relocations, yacht refits, and private events

Concierge and Lifestyle Services
Support with restaurant bookings, schooling logistics, international moves, and luxury travel

Fractional Chief of Staff Services
Strategic oversight of complex family logistics including SOP development, team management, and private budget control

We also provide confidential guidance to employers navigating disciplinary or staffing challenges. Whether you need help coaching new staff, getting involved with staff disciplinary matters, or restructuring your household’s HR approach, we are here to help.

Need help navigating a staffing issue in Monaco?

Contact Platinum Nanny in confidence at +33 7 60 03 83 55 or message us directly on WhatsApp. We are here to support your household with clarity, care, and professionalism.

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