Italy HR Information

Updated on: 2025/08/05 15:25 (UTC)

Overview

The basic rights of employees are laid out in the Italian Constitution and the Civil Code. There is no central employment law, but there are a variety of laws addressing various aspects of the employment relationship.

As a member of the European Union, Italy has agreed to comply with various labor standards shared by all EU countries. For example, the EU 1993 working time directive requires member countries to guarantee paid annual leave of at least four weeks to every worker. A 2003 legislative decree that includes provisions on work hours and leave brought Italian law into compliance with the directive.

Most Italian employees are covered by collective labor agreements. These agreements, often negotiated between unions and employers’ associations on an industrywide basis, generally provide greater benefits than the minimum required by Italian law.

Hiring

Employment Contracts

Employment contracts are mandatory under Italian law, though they need not be in writing.

A contract can be executed for a fixed term or for an indefinite period of time. The maximum duration of fixed-term contracts is 24 months. If the contract is for a maximum of 12 months, employers are not required to specify a justification for using a fixed-term contract. Within the 24-month period, the contract can be extended up to four times as long as the worker consents and the extension relates to the same job. If the contract is extended a fifth time it becomes permanent.

The number of employees on a fixed-term contract cannot exceed 20 percent of an employer’s overall workforce.

Probationary periods are allowed but limited to a maximum six months for executives and high-level employees, three months for other employees.

A contract generally includes:

• • the names of the employer and the employee;
• • employee starting date;
• • probationary period, if any;
• • expiration date if the employment is for a fixed term;
• • wages;
• • work hours;
• • terms of paid leave; and
• • description of duties.

Employers have a duty to inform employees about specific elements of the employment relationship. On Aug. 13, 2022, the government enacted a law that requires employers to provide additional information to employees, including their entitlement to paid leave and duration of their probationary period. The law also established the following provisions:

• employees cannot be prohibited from doing outside work in addition to their job unless the employer has an ‘objective justification’;
• employees cannot be required to pay for compulsory training;
• employees who have worked in the organization for at least six months can request a more predictable working relationship with regard to work hours and scope of work; and
• for employees whose work hours are mostly unpredictable, employers must specify which days and times they can be obliged to work.

The contract may make reference to a collective labor agreement for further terms.

The contract must be given to the employee within 30 days of hiring.

Employers entering into smart agreements with employees must give priority to parents of disabled children and mothers within three years of maternity leave.

Restrictions on Hiring

The minimum working age is defined as the age at which a person concludes formal schooling, but in any case not less than 15 years, although youths under that age can be employed in the family business. Minors cannot be assigned to hazardous or night work. The Italian Constitution requires that minors be paid the same amount as adults for comparable work.

Businesses with 15 or more employees are required to recruit personnel from protected categories, including widows, orphans, refugees and disabled persons.

Recordkeeping

Employers must keep payslip records and a registry of workplace injuries for 10 years.

Background Checks

An employer may conduct background checks only if they are relevant to assessing the applicants’ qualifications for a job.

Noncompetition Agreements

Under the Civil Code, employees may not conduct business in direct competition with their employers, divulge confidential or classified information about their employers’ business or production methods or use such information to cause prejudice to the employer.

Upon termination of the employment relationship, noncompetition agreements are permitted if they:

• • are in writing,
• • compensate the former employee for the restrictions on employment,
• • have a limited scope and geographical coverage and
• • are limited to two years.

Trade secret law in Italy protects company information that:

• • is not generally known,
• • has economic value, and
• • has been the subject of adequate efforts by the company to keep the information secret.

Anyone found to have unlawfully acquired, used, or disclosed a trade secret may be held civilly liable. All rights and actions concerning the protection of trade secrets are subject to a five-year statute of limitations.

Reference Citations

Employment Contracts: Decree No. 78 of May 16, 2014, art. 1 (Italian); Decree No. 368 of Sept. 6, 2001, arts. 3-4 (Italian)

Background checks: Law No. 300 of May 20, 1970, art. 8 (Italian)

Noncompetition Agreements: Civil Code, 1942 (as amended), arts. 2105, 2125 (Italian); Legislative Decree No. 63 of May 11, 2018 (Italian)

Immigration and Work Permits

In General

Employers must request authorization to hire a non European Union foreign worker from the Immigration Single Desk. The application must include details of the work contract, which must comply with existing collective contracts for the specific sector and occupation in which the requested worker will be employed. The employer then sends the work permit to the foreign worker for presentation at the Italian embassy or consulate in his or her country of origin.

Visas and Work Permits

As a member of the European Union, Italy subscribes to the principle of free movement of labor, under which every EU citizen has the right to work in any EU member country, while non-EU citizens are subject to certain regulations, including the requirement of a work permit. Italy admits non-EU foreign workers on an annually adjusted quota system, although some highly skilled professionals with specific professional profiles are exempt from the quota.

Employers must request authorization to hire a foreign worker from the Immigration Single Desk. In the application, the employer is required to guarantee adequate lodging for the worker and travel costs for the worker’s repatriation in case of expulsion before expiration of the contract. The application must also include details of the work contract, which must comply with existing collective contracts for the specific sector and occupation in which the requested worker will be employed.

Once approval is granted, the work permit is delivered to the employer. The entire process takes about 40 days.

The employer then sends the work permit to the foreign worker, who must present it at the Italian embassy or consulate in his or her country of origin.

U.S. citizens do not need a visa for business travel to Italy lasting 90 or fewer days. A passport with validity of at least six months beyond the date of planned return is required.

A resident of the U.S. who plans to stay in Italy as a salaried employee for more than 90 days must obtain a work permit from the prospective employer. Those seeking to work in Italy under other circumstances can fill out a simple questionnaire to determine what documents they need and where to acquire them.

On March 28, 2022, Italy’s parliament approved a new ‘digital nomad‘ visa that allows non-EU nationals to live and work in Italy without first being sponsored by an employer in the country. Individuals eligible for the visa include those work in a highly qualified job using technology that allows them to work independently or for a business that is not located in Italy. Applicants must provide proof of health insurance covering their stay in Italy. The resident permit is valid for up to one year.

Post-Entry Requirements

Within eight days of arrival, a foreign national must appear at the ISD to sign a contract with the employer and receive a permit that will allow the employee to work in Italy. This stay permit has the same duration as the work contract—a maximum of two years—and is renewable.

Penalties

An employer that hires illegal workers may be incarcerated for a period of six months to three years and fined 5,000 euros per worker. In addition, the employer will be liable for an accessory administrative fine amounting to the average cost of repatriating the illegally employed worker. Additional charges can be incurred if the employer has hired more than three such workers, if the workers are minors or if the workers are subject to exploitation. In the last case, a judge may grant the illegally employed foreign national a six-month residency permit. Finally, employers that have hired illegal workers will not be given permission to hire foreign nationals for a period of five years.

Reference Citations

Visas and Work Permits: The Entry Visa (Italian)

Nondiscrimination

In General

Various statutes prohibit actions by an employer that discriminate on the basis of a worker’s sex, marital or family status, pregnancy, sexual orientation, HIV status, race, ethnic origin, language, political or religious beliefs, personal opinion, disability, age or union involvement.

Disability Discrimination

Companies with 15 to 35 employees are required to hire at least one disabled worker, those with 36 to 50 employees two disabled employees and in companies with 51 or more employees, disabled workers must account for at least 7 percent of the workforce. These requirements may be fully or partially suspended in cases where there are financial difficulties or dangerous and strenuous work.

Gender Discrimination

Italian law on gender discrimination prohibits all discrimination—based on sex, marital status, family composition or pregnancy—in hiring, pay, classification, assignment of duties, and promotions. The constitution and employment laws explicitly give women the right to equal pay for comparable work.

Sexual harassment is banned in the workplace and is defined as unwanted conduct of a sexual nature—whether physical, verbal or nonverbal—that violates the dignity of a worker and creates an intimidating, hostile, degrading, humiliating, or offensive environment.

Gender Pay Reporting: Employers with 50 or more workers must write a report every two years that specifies the number of male and female employees, when they were hired, and any differences in pay treatment, level, and role. The report is submitted to the Ministry of Labor and the employer’s works council representatives. An employee may request a copy of the report from the works council representatives.

Employers that take certain steps to reduce the gap between men and women with regard to career growth opportunities, equal pay, and maternity protection may be eligible for reductions in social security contributions.

EU Pay Transparency Directive: As a member state of the European Union, Italy has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Reference Citations

Nondiscrimination: Workers’ Statute, Law No. 300 of May 20, 1970, arts. 15-16 (Italian);

Disability Discrimination: Law No. 68 of March 12, 1999, art. 3 (Italian)

Disability Discrimination: Constitution of the Italian Republic, art. 37 (English)

Gender Discrimination: Law No. 162 of Nov. 5, 2021 (Equal Opportunity Code Amended)

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

The Italian Data Protection Code was modified by Legislative Decree No. 101/2018, which implements the GDPR.

Employee Monitoring and Surveillance

Employers may use surveillance systems to remotely monitor employees only in limited circumstances. Using such systems to track whether employees are arriving on time would be unlawful. However, employers may monitor workers for safety or productivity reasons. In all cases, surveillance equipment may only be installed if the employer has gained the consent of all employees or the affected trade union.

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.

Reference Citations

Employee Data: Italian Personal Data Protection Code, 2003 §§ 23-25; General Data Protection Regulation, 2016

Employee Monitoring and Surveillance: Italian Personal Data Protection Code, 2003 §§ 133-134; General Data Protection Regulation, 2016

Compensation

Hours of Work

There are typically 40 hours of work per week, not to exceed 48 hours, including overtime, in any seven-day period within an averaging period of several months (as many as 12 months in some cases). Employees are entitled to rest periods of at least 10 minutes after working six consecutive hours, of at least 11 consecutive hours in every 24 and 24 consecutive hours every seven days, typically Sunday.

Minors are guaranteed at least two days of rest per week, preferably consecutive and including Sunday.

Minimum Wage

Italian law does not specify a minimum wage. Wages are usually set by collective labor agreements.

Overtime

Work done in excess of 40 hours in a week is considered overtime and is generally paid at a rate of 10 percent above the regular pay rate. Collective labor agreements can provide for higher overtime rates. If not specified otherwise, overtime cannot exceed eight hours weekly or 250 hours per year. Violations can result in the levy of administrative fines.

Wage Payment

Payment terms may be set by a collective labor agreement.

The employer can make deductions from an employee’s wages, including union dues, if authorized by the employee and for contributions to various social insurance programs, such as the old-age pension and the pension for seniority.

Mandatory Bonuses

Employees are commonly rewarded bonuses as agreed to in their company collective agreements, but there is no statutory entitlement to bonuses.

Reference Citations

Hours of Work: Legislative Decree of April 8, 2003, No. 66, Work Time, arts. 3-5 (Italian)

Overtime: Legislative Decree of April 8, 2003, No. 66, Work Time, art. 5 (Italian)

Benefits

Vacation

Workers are entitled to four weeks’ paid annual leave, two of those weeks consecutive at the employee’s request. An employer may require an employee to take vacation leave at a specific time in consideration of the needs of the business. Employees cannot take pay instead of annual leave except when the employment relationship is terminated. Two of the four weeks must be taken during the year in which they are earned, although the other two may be carried over for an additional 18 months.

Holidays

Italy observes the following public holidays, which for employees are generally treated as paid leave:

• • Jan. 1: New Year’s Day
• • Jan. 6: Epiphany
• • Easter
• • Easter Monday
• • April 25: Liberation Day
• • May 1: Labor Day
• • June 2: Date of the Founding of the Republic
• • Aug. 15: Assumption Day
• • Nov. 1: All Saints’ Day
• • Dec. 8: Feast of the Immaculate Conception
• • Dec. 25: Christmas Day
• • Dec. 26: St. Stephen’s Day

Each locality also observes an additional holiday to honor its patron saint.

Workers receive an additional day’s pay if a public holiday falls on a Sunday or another day that is not usually a workday. Workers who must work on a holiday are paid overtime.

Maternity Leave

Pregnant workers are required to take five months’ maternity leave. During the compulsory rest period, the mother is entitled to 80 percent of her regular pay from the social security system.

Either parent may also take parental leave for up to six months each (with an overall limit of 10 months together) during the first 12 years of each child’s life at 30 percent pay.

During the entire pregnancy, the employee must not be allocated tasks that may endanger her health. Following maternity leave, employees are entitled to return to the same job in which they were employed before taking leave.

During the first year following childbirth, working mothers can take two one-hour daily breaks during the workday, one if working time is less than six hours daily. These breaks may be taken off-premesis if the employee wishes.

During pregnancy and up to seven months after the child’s birth, female workers have the right to be transferred to a different job with no reduction in pay if necessary to protect the mother’s or the child’s health.

Employers may not dismiss female employees during pregnancy and until the child is 1 year old except in certain circumstances.

Paternity Leave

Effective Aug. 13, 2022, working fathers (including adoptive or foster fathers) are entitled to 10 compulsory days of paid paternity leave. The leave can also be availed in the case of perinatal death of the child. In the case of multiple births, the entitlement increases to 20 working days. The leave can be taken from two months before the presumed date of birth up to five months after the child’s birth. During the compulsory rest period, the father is entitled to 100 percent of his regular pay from the social security system.

Either parent also may take parental leave for up to six months each (with an overall limit of 10 months together) during the first 12 years of each child’s life at 30 percent pay.

Should the mother die or become seriously ill, the father may take paternity leave equal to what the mother would have received in maternity leave, the cost borne by the social security system. The father is also entitled to what would have been the mother’s daily break entitlement if the child is raised by the father only, the mother is not employed or the mother dies or becomes gravely ill.

Sick Leave

Entitlement to sick leave is usually specified by a collective labor agreement. A worker typically gets full pay during sick leave, partly from the employer and partly from the National Social Security Institute.

Other Leave

Personal leave. Employees are entitled to 15 days’ paid personal leave at the time of their marriage and occasional days off for family responsibilities, including the death of a relative or the sickness of a child.

Education leave. Workers with at least five years’ seniority at a company are entitled to 11 months of unpaid education leave, either continuous or intermittent, to attend college or other school. Collective labor agreements generally specify additional education benefits, such as a number of hours of paid education leave.

Military service. An employer must preserve the employee’s position during a period of military service plus 30 days after discharge. The employer is not required to pay the employee during this time but must include the period in calculations of seniority.

Pensions and Social Security

Italy’s old-age pension system consists of a notional defined contribution (NDC) program. Generally, to qualify for an NDC an individual must have reached the normal retirement age of 67 and have at least 20 years of contributions. Under normal rules, early retirement is possible (1) at any age with at least 42 years and 10 months (men) or 41 years and 10 months (women) of contributions, or (2) for individuals first insured on or after January 1, 1996, at age 64 with at least 20 years of contributions if the insured’s notional account balance is sufficient to provide a monthly pension above a certain amount

Employees can subscribe to supplementary pension schemes, and employers are free to decide whether to set up their own supplementary pension funds. Payouts are based for the most part on a preestablished contribution rate. Beneficiaries typically can withdraw up to 50 percent of their accumulated balance as a lump sum and then take the remaining amount (or the entire amount) as an annuity.

Workers’ Compensation

The National Institute for Occupational Accidents (INAIL) is the government agency in charge of the workers’ compensation insurance program. The employer pays the premium for the insurance and INAIL pays various benefits to the employee for temporary or total disability or to survivors in the case of a fatal accident.

Reference Citations

Vacation: Legislative Decree of April 8, 2003, No. 66, Work Time, art. 10 (Italian); Civil Code, 1942 (as amended), art. 2109 (Italian)

Holidays: Provision on Festive Occasions, No. 260, May 27, 1949 (Italian)

Maternity Leave: Legislative Decree of March 26, 2001, Consolidated Laws on the Protection and Support of Motherhood and Fatherhood, arts. 22, 32, 34, 54 (Italian); Legislative Decree of June 15, 2015, No. 80, art. 7 (Italian)

Paternity Leave: Legislative Decree of March 26, 2001, Consolidated Laws on the Protection and Support of Motherhood and Fatherhood, arts. 28, 34 (Italian)

Pensions and Social Security: Civil Code, 1942 (as amended), arts. 2114-2117 (Italian)

Workers’ Compensation: Decree No. 38, February 23, 2000, Provisions on Insurance Against Accidents at Work and Occupational Diseases (Italian)

Labor Relations

In General

The constitution gives employees and employers the right to join unions or associations. There is no specific process in Italy to recognize or certify a union as the bargaining agent for a group of employees, and workers effectively give a union the authority to negotiate on their behalf by joining the union and paying dues. The constitution recognizes the right to strike, although the parties to a labor dispute are required to submit their disagreement to a provincial labor office for conciliation and, if conciliation fails, to arbitration or the labor courts.

Right to Organize

The constitution gives employees and employers the right to join unions or associations. The Workers’ Statute of 1970 further declares the workers’ right to join unions and provides protections for that right while laying down some ground rules on the workings of unions.

There is no specific process in Italy to recognize or certify a union as the bargaining agent for a group of employees; there are no elections or government certification. Workers effectively give a union the authority to negotiate on their behalf with an employer by joining the union and paying dues directly to the union or by authorizing the employer to deduct dues from wages.

Most employers, except owners of small businesses, join associations that negotiate national agreements with the corresponding employee unions over the terms and conditions of employment for a particular industry.

Works Councils

European works councils were established in EU countries in 1994 to allow the management of a company to inform and consult with its European employees on significant decisions and on the company’s progress. Works councils may be formed through the initiative of employees in every plant with more than 15 workers.

Dispute Resolution

Parties to a labor dispute are required to submit their disagreement to a provincial labor office for conciliation. If conciliation fails, the parties can take the dispute to arbitration or to the labor courts. The Italian Code of Civil Procedures requires labor proceedings to be concluded more quickly than other forms of litigation. The 2012 labor law reforms require a 20-day limit on conciliation attempts.

Strikes and Lockouts

While the constitution recognizes the right to strike, there is only one statute and some case law regulating work stoppages. The 1990 statute limits the right to strike of workers involved in providing such essential public services as health care, transportation, communications, utilities, law enforcement and education.

Labor actions can take many forms, such as slowdowns or brief work stoppages, which are lawful as long as they do not infringe on other constitutional rights.

There is no specific law or regulation on employer lockouts of workers.

Successorship Clauses

If an employer is transferring an undertaking with more than 15 employees it must provide the following information to the employees’ representatives at least 25 days before executing the transfer:

• • the scheduled date of the transfer,
• • the reasons for the transfer,
• • the economic and legal consequences of the transfer for the employees and
• • any measures that the transferee might adopt towards employees after the transfer.

Reference Citations

Right to Organize: Workers’ Statute, Law No. 300 of May 20, 1970, art. 1 (Italian)

Works Councils: Workers’ Statute, Law No. 300 of May 20, 1970, art. 19 (Italian)

Dispute Resolution: Workers’ Statute, Law No. 300 of May 20, 1970, art. 28 (Italian)

Strikes and Lockouts: Constitution of Italy, 1947 (as amended)

Successorship Clauses: Law No. 428 of 1990, art. 1 (Italian)

Safety, Health and Security

In General

Employers are required to protect the physical and psychological wellbeing of their employees and must conduct risk assessments and ensure adequate prevention and protection systems.

Workplace Safety and Health

Employers are required to protect the physical and psychological wellbeing of their employees and must conduct risk assessments and ensure adequate prevention and protection systems. Employees and their representatives are entitled to check the effectiveness of employer health and safety standards.

In certain instances, employers must suspend work if employees are ignoring safety instructions Employee conduct that does not comply with the safety instructions given by the employer must be dealt with by the responsible supervisor. the responsible supervisor must change the non-compliant conduct by providing the necessary safety instructions. If there is a failure to implement the instructions given or continuous non-compliance, work must be stopped and direct superiors informed. If there are work deficiencies in the means and equipment or other dangerous conditions detected during supervision, the supervisor must temporarily interrupt the work and promptly inform the employer and manager of the non-conformities, if needed.

Drug and Alcohol Use

Regional authorities have introduced legislation related to the use of alcohol and drugs in the workplace. State-region agreements specify categories of workers who might be at risk and establish preventive measures. Smoking is banned in all indoor public places, including offices, restaurants and bars. An employer can establish an indoor smoking room, subject to regulations concerning ventilation and placement. In practice, however, most businesses do not have the space to spare for an indoor smoking room.

Reference Citations

Workplace Safety and Health: Civil Code, 1942 (as amended), art. 2087 (Italian); Constitution of Italy, 1947 arts. 32, 35, 38, 41 (as amended)

Termination

Termination by Employer

There is generally no at-will employment doctrine in Italy. Only executives, domestic workers and employees over 60 years of age who are eligible for a pension may be terminated at will. Employers may terminate other employees for “just cause” or on “justified grounds” only. Just cause has been defined by the courts as any serious breach by an employee, such as theft. Justified grounds include less serious breaches, such as unexcused and repeated absences from work or the employer’s objectively reasonable need to reorganize business activities.

No notice is required for a termination for just cause. Notice must be given in writing, however, for a justified-grounds dismissal. The relevant notice period is set out in the applicable collective bargaining agreement. The employee also has the right to ask the employer for reasons for the dismissal within 15 days of termination, and the employer has seven days following the request to respond.

Prohibited grounds for dismissal of an employee include race, sex, marriage, pregnancy, religion, political opinion, national origin, the filing of an employment complaint, trade union membership, participation in a strike, military service and temporary illness or injury. A woman who becomes pregnant cannot be dismissed from the time of conception until the child reaches 1 year of age.

Before filing a claim for unfair dismissal, an employee must challenge the fairness of the dismissal in writing within 60 days.

Whistleblowing. On Mar. 10, 2023, the Italian government approved a law that expands the country’s whistleblower protection framework by transposing the EU Whistleblowing Directive into national law. Private-sector employers with 50 workers or more must establish an internal reporting channel and procedure for whistleblowing related to breaches of government laws and regulations. The law also requires covered employers to implement a policy that protects individuals from retaliation for reporting potential wrongdoings and corporate misconduct.

Termination by Employee

Generally, a collective labor agreement will specify the length of notice an employee who is resigning must give the employer. No notice is required under certain circumstances, however, such as nonpayment of wages, closing of the business or refusal to grant holidays.

Plant Closings and Mass Layoffs

A collective dismissal is defined in Italian law as the termination of at least five employees in one or more production units within one province within 120 days by an employer with more than 15 employees. This also applies to companies that are going out of business.

The employer must give written notice of the proposed mass layoff to relevant labor unions and local works councils with details about the number of employees and positions involved, the schedule for dismissals and reasons for the dismissals.

Employees made redundant by certain categories of companies (an industrial company employing 15 or more workers, for example) who have at least one year of seniority in that company receive an unemployment allowance from the Istituto Nazionale della Previdenza Sociale. For each laid-off employee, employers make a financial contribution equal to 30 monthly payments to INPS to finance this allowance. Pending the outcome of judicial proceedings related to the dismissals, the employer makes this payment in advance.

Payment on Termination

Every employee is entitled to severance pay even if terminated for just cause or by resignation. An employer sets aside a certain amount of salary each month, calculated by a formula that is revalued annually of a year’s salary, including bonuses, divided by 13.5, plus 1.5 per cent for each year’s service plus 75 percent of the consumer price index inflation of the previous year for non-management employees. The calculation of severance pay for managers ranges from a minimum based on salary during the notice period plus two months to a maximum of 20 months’ salary, plus an additional amount if the manager is between age 50 and age 59.

Compensation for employees in cases of unfair dismissal vary depending on whether the employee was hired before or after March 7, 2015.

For employees hired before March 7, 2015, compensation for unfair dismissal is as follows:

• • if a court finds that reasons for the dismissal do not exist, the employer must reinstate the worker or pay him or her 15 months’ salary, whichever the employee prefers. The employer also must compensate the employee for the salary he or she would have received from the date of dismissal until the date of the court ruling up to 12 months;
• • in cases where a dismissal on disciplinary or redundancy grounds is deemed to be unfair, the dismissal remains in place but the employee has the right to be awarded compensation of between 12 and 24 months’ wages; and
• • if a court finds that the dismissal has grounds but is issued without an explanation of its grounds or violates required procedures, the contract will terminate at the date of dismissal and the employer must pay compensation ranging from 6-12 monthly salaries.

For employees hired after March 7, 2015, compensation for unfair dismissal is as follows:

• • if it is proved that the ‘material fact’ upon which the dismissal was based did not occur, the employee must be reinstated and given an indemnity equal to the salary from the date of dismissal until the reinstatement with a cap of 12 months’ salary. The employee has the right to choose the indemnity in lieu of reinstatement; and
• • if the dismissal was simply not justified, the employee must be given compensation equal to two months’ salary for each year of service, with a minimum of six and a maximum of 36 months.

Employers that have 15 or fewer employees (either in the place of employment or within the same municipality) and 60 employees or fewer in Italy, must either re-hire the employee unfairly dismissed within three days or pay a compensation equal to an amount ranging from 2.5 to 6 monthly salaries (whichever the employer prefers).

In all cases, employees dismissed for discriminatory reasons must be reinstated.

Before filing a claim for unfair dismissal, an employee must challenge the fairness of the dismissal in writing within 60 days. Claims against dismissal must be filed within 180 days of the date on which the employee first challenges the dismissal.

Unemployment Insurance

Unemployment benefits are available to workers who have been involuntarily terminated, have resigned for just cause, are pregnant or are mothers of children under 1 year of age.

The benefit is paid monthly by the INPS.

To qualify for full benefits, a worker must have been covered by unemployment insurance for at least two years before termination and must have made at least one year of payments into the system in the previous two years.

Workers who don’t qualify for full benefits but have been covered by unemployment insurance for at least two years and have worked at least 78 days in the past year may receive reduced benefits.

Unemployment benefits are separate from compensation payable at termination to all employees regardless of the reason for termination.

Reference Citations

Termination by Employer: Civil Code, 1942 (as amended), arts. 2096, 2118, 2119 (Italian)

Plant Closings and Mass Layoffs: Law No. 223 of July 23, 1991, art. 24 (Italian)

Payment on Termination: Civil Code, 1942 (as amended), art. 2120-2121 (Italian); Decree of July 12, 2018, Urgent Provisions for the Dignity of Workers and Business, 2018 (Italian)

Personal Taxes

Residency Requirements

A resident for tax purposes is anyone present in Italy for at least 183 consecutive days.

Taxable Income

Residents are taxed on their worldwide income, nonresidents only on income earned in Italy. Income from employment, including salary, wages and bonuses, is subject to tax.

Tax Rates

Employees pay progressive tax rates ranging from 23 percent to 43 percent depending on income.

Reference Citations

Taxable income: Consolidated text of income taxes, 1986 (Italian)

Web References

In Italian unless otherwise noted.

Law and Regulation

Civil Code

Constitution of the Italian Republic (English)

Law of June 28, 2012, Provisions Relating to the Reform of the Labor Market in a Growth Perspective

Law of Dec. 24, 2007, No. 247, Pensions

Legislative Decree of April 8, 2003, No. 66, Work Time

Legislative Decree of April 11, 2006, No. 198, Equal Opportunities

Legislative Decree of Aug. 4, 1999, No. 345, Protection of Young People at Work

Legislative Decree of March 26, 2001, No. 151, Maternity and Paternity Leave

Legislative Decree of July 9, 2003, No. 216, Equal Treatment

Government Websites and Publications

Ministry of Labor and Social Policies

National Social Security Institute