Bill No. 1108, submitted by the Monaco Government on April 30th, 2025, introduces a new method for the termination of permanent employment contracts in Monaco.   This text represents a significant change in Monegasque labour law, introducing a method of amicable separation between employee and employer.   Termination by mutual agreement between employee and employer. Initiative belonging to both employer and employee. Cannot be imposed by either party. Freedom of consent strictly protected. Significant latitude for negotiating on the terms and conditions of contract termination, within the limits of the procedural rules laid down.   Calculation of statutory minimum entitlement: Less than 2 years' seniority corresponds to one quarter of a month's salary per year of seniority. After 2 years of seniority, compensation must be at least equal to the severance pay so called “indemnité de congédiement”.   There is a withdrawal period of 15 calendar days for both parties. Approval by the labour inspectorate must be granted within 15 working days. If there is no answer, the agreement is deemed approved. However, for protected employees, if there is no answer, it is deemed refused.   Once approved, the law will come into force subject to an agreement with France, to enable employees working in Monaco to entitle from unemployment benefits in their country of residence, in the event of recourse to the Monegasque system of mutual termination agreement of employment contracts.   There are advantages for the employer to remedy to the mutual termination rather than the dismissal provided for by article 6 of law No.729. There is a very limited risk of litigation. Severance pay may be lower. There is the possibility to resolve a deadlock situation when recourse to article 6 is restricted – either by custom or agreement or when the employee benefits from specific protection.  

Monaco, April 2025 – The Princely Government has reaffirmed its support for entrepreneurship with the adoption of Ministerial Decree No. 2025-179, dated April 8, 2025, and effective since its publication on April 11. This updated regulation modernizes the framework for professional establishment aid and business support measures in the Principality. A Modernized Support System This new decree replaces the former Ministerial Decree No. 2004-261, introducing significant improvements to better respond to today’s entrepreneurial needs: Clearer eligibility criteria: Aid is now available to individuals of Monegasque nationality and their spouses or partners. Extended support duration: Financial aid is granted for an initial period of one (1) year, renewable upon request for an additional two (2) years. Increased rent assistance: The monthly cap for rent support has been raised to €900, easing the financial burden of business setup. Retention of loan subsidy programs: Businesses established in Monaco for less than five years remain eligible for professional loan subsidies. Crisis-ready measures: Aid mechanisms introduced during the COVID-19 pandemic have now been generalized for any officially recognized epidemic, ensuring faster and broader support. Fostering Economic Development in the Principality With this reform, Monaco demonstrates its commitment to nurturing a dynamic and resilient economic ecosystem. The revised aid system is designed to stimulate local entrepreneurship, enhance business competitiveness, and attract new professional ventures. Read Ministerial Decree No. 2025-179 (April 8, 2025): https://lc.cx/ITGN0i

Monaco, April 3, 2025 – The National Council has adopted Bill No. 1094 giving rise to Law No. 1.573 of 8 April 2025 on the modernisation of company law published in the Journal de Monaco on 18 April 2025, marking a major step forward in the Principality’s corporate law framework. This comprehensive reform seeks to boost Monaco’s economic appeal while reinforcing legal certainty, transparency, and efficient corporate governance. A Reform Tailored for a Modern, Competitive Business Environment Monaco’s updated corporate legislation reflects the country’s commitment to providing businesses with a robust, flexible, and transparent legal framework. The adoption of Law No. 1.573 introduces key improvements aimed at supporting entrepreneurs and investors alike. Highlights of Law No. 1.573 The reform introduces several significant advancements, including: Creation of the Sole Limited Liability Company (SURL): a new vehicle tailored for individual entrepreneurs wishing to operate through a corporate structure. Legal recognition of the Société Civile de Moyens (SCM): a flexible framework for professionals to pool resources. Legal personality granted upon registration: companies now acquire legal status immediately upon incorporation. Authorization of industry contributions: SARLs and SAMs may now include non-monetary contributions such as know-how or services. Remote meetings: board and shareholder meetings may be held via videoconference. Minority shareholder alert rights: enhanced tools for corporate governance and minority protection. Streamlined formalities: simplified procedures for changes to share capital, company name, or registered office. Recognition of preferred shares: enabling tailored economic and voting rights for shareholders. Introduction of a conciliation procedure: a preventive and amicable mechanism to resolve company difficulties. A Stronger Legal Framework to Attract and Retain Business With this reform, Monaco strengthens its position as a dynamic, forward-looking jurisdiction offering legal clarity and operational flexibility for businesses of all sizes. Learn more: https://www.conseil-national.mc/2025/04/23/n1573-loi-relative-a-la-modernisation-du-droit-des-societes-2/