Italy Labour Management QA

Email: mxp4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Italian, English and Chinese.
skype: burlinna

LRC –Italy Labor Regulations

LRC-IT-20.10

What must be included in the contents of a labor contract in Italy?

Evershine RD:

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

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.

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.

LRC-IT-20.11

Do Italy arrange labor contract in fixed term?
What should be the length of the labor contract in Italy?

Evershine RD:

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.

Within the 24-month period, the contract can be extended up to 4 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% of an employer’s overall workforce.

LRC-IT-20.20

What is the minimum age for hiring new employee in Italy?

Evershine RD:

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.

LRC-IT-20.40

Is it a requirement for employer in – Italy to conduct a pre-employment background check?

Evershine RD:

According to Law No. 300 of May 20, 1970, art. 8 (Italian).
An employer may conduct background checks only if they are relevant to assessing the applicants’ qualifications for a job.

LRC-IT-20.50

Is the Non-Competition indemnity clause in labor contract in Italy has legal effect?

Evershine RD:

According to Civil Code, 1942 (as amended), arts. 2105, 2125 (Italian); Legislative Decree No. 63 of May 11, 2018 (Italian).
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 2 years.

Anyone found to have unlawfully acquired, used, or disclosed a trade secret may be held civilly liable.

LRC-IT-40.05

What are the regulations on Gender Discrimination in employment specifically for female workers in Italy?

Evershine RD:

Italian law on gender discrimination prohibits all discrimination.

The constitution and employment laws explicitly give women the right to equal pay for comparable work.
Employers with 50 or more workers must write a report every 2 years that specifies the number of male and female employees, when they were hired, and any differences in pay treatment, level, and role.
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.

LRC-IT-50.10

Can the employer in Italy collect, or process data transmitted by employees over the internet?

Evershine RD:

Under the General Data Protection Regulation 2016 (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.

LRC-IT-60.10

What are the regulations on working hours in Italy?

Evershine RD:

According to Legislative Decree of April 8, 2003, No. 66, Work Time, arts. 3-5 (Italian).
There are typically 40 hours of work per week, not to exceed 48 hours, including overtime, in any 7-day period within an averaging period of several months (as many as 12 months in some cases).

LRC-IT-60.30

What are the regulations on overtime hours in Italy?
What is the overtime premium rate in Italy?

Evershine RD:

According to Legislative Decree of April 8, 2003, No. 66, Work Time, art. 5 (Italian).
Work done in excess of 40 hours in a week is considered overtime and is generally paid at a rate of 10% above the regular pay rate.
Collective labor agreements can provide for higher overtime rates.
If not specified otherwise, overtime cannot exceed 8 hours weekly or 250 hours per year.

LRC-IT-60.50

Is it common to pay 13^th month’s salary in Italy?

Evershine RD:

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

LRC –Italy Labor Regulations

LRC-IT-20.10

What must be included in the contents of a labor contract in Italy?

Evershine RD:

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

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.

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.

LRC-IT-20.11

Do Italy arrange labor contract in fixed term?
What should be the length of the labor contract in Italy?

Evershine RD:

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.
Within the 24-month period, the contract can be extended up to 4 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% of an employer’s overall workforce.

LRC-IT-20.20

What is the minimum age for hiring new employee in Italy?

Evershine RD:

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.

LRC-IT-20.40

Is it a requirement for employer in – Italy to conduct a pre-employment background check?

Evershine RD:

According to Law No. 300 of May 20, 1970, art. 8 (Italian).

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

LRC-IT-20.50

Is the Non-Competition indemnity clause in labor contract in Italy has legal effect?

Evershine RD:

According to Civil Code, 1942 (as amended), arts. 2105, 2125 (Italian); Legislative Decree No. 63 of May 11, 2018 (Italian).
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 2 years.

Anyone found to have unlawfully acquired, used, or disclosed a trade secret may be held civilly liable.

LRC-IT-40.05

What are the regulations on Gender Discrimination in employment specifically for female workers in Italy?

Evershine RD:

Italian law on gender discrimination prohibits all discrimination.
The constitution and employment laws explicitly give women the right to equal pay for comparable work.
Employers with 50 or more workers must write a report every 2 years that specifies the number of male and female employees, when they were hired, and any differences in pay treatment, level, and role.
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.

LRC-IT-50.10

Can the employer in Italy collect, or process data transmitted by employees over the internet?

Evershine RD:

Under the General Data Protection Regulation 2016 (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.

LRC-IT-60.10

What are the regulations on working hours in Italy?

Evershine RD:

According to Legislative Decree of April 8, 2003, No. 66, Work Time, arts. 3-5 (Italian).
There are typically 40 hours of work per week, not to exceed 48 hours, including overtime, in any 7-day period within an averaging period of several months (as many as 12 months in some cases).

LRC-IT-60.30

What are the regulations on overtime hours in Italy?
What is the overtime premium rate in Italy?

Evershine RD:

According to Legislative Decree of April 8, 2003, No. 66, Work Time, art. 5 (Italian).
Work done in excess of 40 hours in a week is considered overtime and is generally paid at a rate of 10% above the regular pay rate.
Collective labor agreements can provide for higher overtime rates.
If not specified otherwise, overtime cannot exceed 8 hours weekly or 250 hours per year.

LRC-IT-60.50

Is it common to pay 13^th month’s salary in Italy?

Evershine RD:

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

LRC-IT-70.10

What are the regulations on general leave policy for employee in Italy?

Evershine RD:

According to Legislative Decree of April 8, 2003, No. 66, Work Time, art. 10 (Italian); Civil Code, 1942 (as amended), art. 2109 (Italian).
Workers are entitled to 4 weeks’ paid annual leave, 2 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.
2 of the 4 weeks must be taken during the year in which they are earned, although the other 2 may be carried over for an additional 18 months.

LRC-IT-70.20

What are the public holidays in Italy?
What is the overtime premium rate during public holiday in Italy?

Evershine RD:

According to Provision on Festive Occasions, No. 260, May 27, 1949 (Italian).
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.

LRC-IT-70.30

What is the maternity leave policy for female employee in Italy?

Evershine RD:

According to Legislative Decree of March 26, 2001, Consolidated Laws on the Protection and Support of Motherhood and Fatherhood, arts. 22, 32, 34, 54 (Italian).
Pregnant workers are required to take 5 months’ maternity leave.
During the compulsory rest period, the mother is entitled to 80% of her regular pay from the social security system.
Either parent may also take parental leave for up to 6 months each (with an overall limit of 10 months together) during the first 12 years of each child’s life at 30% pay.

LRC-IT-70.40

What is the paternity leave policy for male employee in Italy?

Evershine RD:

According to Legislative Decree of March 26, 2001, Consolidated Laws on the Protection and Support of Motherhood and Fatherhood, arts. 28, 34 (Italian).
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 2 months before the presumed date of birth up to 5 months after the child’s birth.
During the compulsory rest period, the father is entitled to 100% of his regular pay from the social security system.

LRC-IT-70.50

What are the provisions on sick leave, bereavement leave and personal leave for employees in Italy?

Evershine RD:

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.

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.

LRC-IT-70.60

What are the regulations on pension benefits and social security insurance benefits for employee in Italy?

Evershine RD:

According to Civil Code, 1942 (as amended), arts. 2114-2117 (Italian).
Italy’s old-age pension system consists of a notional defined contribution (NDC) program
Individual must reach the normal retirement age of 67 and have at least 20 years of contributions in order to qualify for an NDC.
Under normal rules, early retirement is possible.
Employees can subscribe to supplementary pension schemes, and employers are free to decide whether to set up their own supplementary pension funds.
Other social Security benefits are Health, maternity, paternity, disability and death insurance, occupational accident and illness insurance, family allowances and unemployment benefits.

LRC-IT-70.70

What are the regulations on Workers’ Compensation for employee in Italy?

Evershine RD:

According to Decree No. 38, February 23, 2000, Provisions on Insurance Against Accidents at Work and Occupational Diseases (Italian).
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.

LRC-IT-80.05

Can the employee in Italy join labor union?

Evershine RD:

According to Workers’ Statute, Law No. 300 of May 20, 1970, art. 1 (Italian).
The constitution gives employees and employers the right to join unions or associations.

LRC-IT-80.06

How to handle labor dispute in Italy?

Evershine RD:

According to Workers’ Statute, Law No. 300 of May 20, 1970, art. 28 (Italian).
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.

LRC-IT-90.10

What are the regulations on workplace safety and health for employee in Italy?

Evershine RD:

According to Civil Code, 1942 (as amended), art. 2087 (Italian), Constitution of Italy, 1947 arts. 32, 35, 38, 41 (as amended).
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.
In certain instances, employers must suspend work if employees are ignoring safety instructions.

LRC-IT-100.10

What are the circumstances that an employer can terminate an employee in Italy?

Evershine RD:

According to Civil Code, 1942 (as amended), arts. 2096, 2118, 2119 (Italian).
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 and employee, such as theft.
Justified grounds include less serious breaches, such as unexcused and repeated absences from work.
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.

LRC-IT-100.11

What is the notification period for terminating an employee in Italy?

How much is the severance pay?

Evershine RD:

According to Civil Code, 1942 (as amended), art. 2120-2121 (Italian); Decree of July 12, 2018.
No notice is required for a termination for just cause.
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 7 days following the request to respond.
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% for each year’s service plus 75% of the CPI 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 2 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 very depending on whether the employee was hired before or after March 7, 2015.

LRC-IT-100.12

What is the reporting requirement for employer in Italy to notify the termination of employees to the competent authority?

Evershine RD:

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.

LRC-IT-100.20

What are the regulations on mass layoffs in Italy?

Evershine RD:

According to Law No. 223 of July 23, 1991, art. 24 (Italian).
A collective dismissal is defined in Italian law as the termination of at least 5 employees in one or more production units within 1 province within 120 days by an employer with more than 15 employees.
This also applies to companies that are going out of business.

LRC-IT-100.30

What is the time limit for employer in Italy to pay employees upon termination?

Evershine RD:

Generally due on the date where the regular wages due each month.

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The Engaging Manager from Headquarter
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skype: burlinna

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