Hire in Italy

EOR in Italy

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Italy, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Italy―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Italy and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Italy

There is no central employment law in Italy, but employee rights are addressed in the Italian Constitution and the Civil Code, and there are a variety of laws governing the nature of employment relationships.

Most Italian employees are protected by collective labor agreements, which provide greater benefits than the minimum required by Italian law.

Employment contracts in Italy

As you look to hire new employees, here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Italian employees typically have a 40-hour workweek. Working hours should not exceed 48 hours per week, including overtime, when averaged over several months.

Employees are entitled to 24 consecutive hours of rest every seven days, and minors are guaranteed at least two days of rest per week.

Compensation

As you consider the appropriate salary to offer your Italian employees, keep in mind:

• Italian law does not specify a minimum wage, and wage requirements are determined by collective labor agreements.
• For employees required to work beyond the standard 40-hour workweek, overtime pay is generally 10% above the regular pay.

As your employer of record in Italy, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

In Italy, employees may be eligible for 13th and even 14th month bonus payments.

Probationary period

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

Termination and severance

An employee in Italy may only be terminated if there is a real and serious cause. Italian courts define just cause for dismissal as any serious breach by an employee, such as theft. But employers may terminate employees on justified grounds for less serious breaches, such as unexcused or repeated absences from work, when the employer can objectively prove the business need for a termination, or for so-called subjective reasons including a breach of contractual obligations or negligence.

Dismissal without cause is considered abusive treatment, and the employee can be awarded damages of up to three years’ salary.

In Italy, every employee is entitled to severance pay, even during a resignation or a termination for just cause. Employers must set aside a certain amount of salary each month to cover employee severance.

Employee benefits and paid leave in Italy

When negotiating terms of an employment contract with a candidate in Italy, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Employees in Italy are required to take five months of maternity leave. During this period, mothers are entitled to 80% of their regular pay from the social security system.

Vacation

Workers are entitled to four weeks paid annual leave, two of those weeks consecutive at the employee’s request. Two weeks of annual leave must be taken during the year they are earned, but the remaining two weeks may be carried over for up to 18 months.

Employees may not take pay instead of annual leave except when the employment relationship is terminated.

Holidays

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

• New Year’s Day
• Epiphany
• Easter
• Easter Monday
• Liberation Day
• Labor Day
• Date of the Founding of the Republic
• Assumption Day
• All Saints’ Day
• Feast of the Immaculate Conception
• Christmas Day
• Stephen’s Day

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

Employees receive an additional day’s pay if a public holiday falls on a weekend, and employees who must work on a holiday receive overtime pay.

Sick leave

Collective labor agreements specify employee entitlement to sick leave. Generally, Italian employees receive full pay during sick leave, which is paid by the employer and the National Social Security Institute.

Health coverage

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 mostly based on a pre-established contribution rate. Beneficiaries typically can withdraw up to 50% of their accumulated balance as a lump sum and then take the remaining amount (or the entire amount) as an annuity.

Additional benefits

The social security system in Italy covers a range of benefits, including pensions; benefits for sick leave, maternity, paternity and parental leave; workers’ compensation; and unemployment and disability benefits.

Employer social costs will cover a large portion of employee benefits in Italy, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance, if needed.

Updated: December 18, 2023

Employee onboarding with an employer of record in Italy

We write and validate all local employment contracts, streamlining the onboarding process for you and your Italian employees—all you have to do is provide relevant information and review and approve the employment agreement.

As your employer of record in Italy, we will:

• Schedule a welcome call to discuss HR and employment information for Italy, as well as answer any questions
• Prepare a customized employment contract in English and in Italian (or other local language)
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee can often be completed in as little as two weeks.

Partner with Safeguard Global as your Italy employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in over 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Italy. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.