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Italy
Officially ‘Repubblica Italiana’ is a country in Southern and Western Europe. Located in the middle of the Mediterranean Sea, it consists of a peninsula delimited by the Alps and surrounded by several islands. Italy has the eighth-largest nominal GDP in the world, the ninth-largest national wealth and the third-largest central bank gold reserve
POPULATION
59 million inhabitants
CURRENCY
Euro (EUR)
GDP
$2.38 trillion
MINIMUM MONTHLY WAGE:
:
There is no national minimum wage in Italy.
TIME ZONE
UTC +1
The economy of Italy is a highly developed social market economy.
It is the third-largest national economy in the European Union, the 8th-largest in the world by nominal GDP, and the 12th-largest by GDP (PPP).
Italy is the world’s seventh-largest manufacturing country, characterised by a smaller number of global multinational corporations than other economies of comparable size and many dynamic small and medium-sized enterprises, notoriously clustered in several industrial districts, which are the backbone of the Italian industry.
Italy is a founding and leading member of the European Union, and it is in numerous international institutions including NATO, the G7, the Mediterranean Union, and the Latin Union. The source of many inventions and discoveries, the country is considered a cultural superpower and has long been a global centre of art, music, literature, cuisine, science and fashion.
There are two major types of employment contracts in Italy:
- Labor agreement for an indefinite term. An employment contract normally has an unlimited duration, with the Italian labor framework encouraging the hiring of permanent subordinate employees. However, there are various forms of subordinate employment contracts that allow, under certain conditions, some flexibility to employers and employees.
- apprenticeships,
- part-time,
- solidarity contracts (these are intended to assist in maintaining employment during periods of business difficulties),
- “work-training” contracts,
- work with temporary agencies, and contracts for managers (dirigenti),
- On-call work (allows employers to call in workers for occasional tasks)
- Fixed-term agreement.
Fixed-term contracts – although permissible – are subject to compliance with certain conditions.
Fixed-term contracts of employment are permitted to the extent that they are justified on grounds such as seasonal work, replacement of employees on sick leave or maternity leave, and extraordinary and occasional work
The maximum duration of the fixed-term contract is currently set at 12 months, with the possibility of extension to 24 months, but only in the presence of at least one of the following conditions:
- temporary and objective needs, unrelated to ordinary activity;
- replacement needs of other workers;
- needs related to temporary, significant and non-programmable increases in day-to-day business.
The fixed-term contract may not, therefore, have a duration of more than 24 months, including extensions or for the succession of several contracts, subject to different provisions of national, territorial, or business collective agreements concluded by comparatively more representative trade union associations at the national level. For the purposes of calculating the 24 months, periods relating to missions in administration performed by the worker with the same user, concerning tasks of the same level and legal category, shall also be taken into account.
For the contract to be legally binding, specific clauses must be written down and provided to the employee within 30 days of their start date. Be sure to include key details such as the position, job title and description, start date, working hours, probation period, compensation, benefits, termination policy, time off, and other relevant information.
No national project‐work or gig-specific contract; self-employed and freelance arrangements remain outside these employment rules.
In principle, employees must work 40 hours per week, except when more favorable provisions are afforded by the employees under the CBA. The duration of the weekly working time cannotexceed 48 hours a week, including overtime. This is to be calculated over a period not exceeding four months, unless the applicable NCA increases such a period up to six months.
Overtime work cannot exceed a threshold, as prescribed by the applicable NCLA or a maximum of 250 hours per annum. Overtime should only be requested on an occasional basis due to exceptional circumstances, technical requirements, productive reasons or particular events. Overtime must be paid to the employee with an increase of salary. Different rules may apply to middle managers and executives.
All employees are entitled to a minimum of four weeks’ (20 days) paid annual holiday. CBAs and individual contracts may allow for a longer period of holiday leave. Minimum annual leave is not allowed to be replaced by a payment in lieu, except in cases where the employment contract is terminated.
The CBAs grant each worker special paid leave known as ROL (Reduction in Working Hours) to employees with two years of seniority. These are permits that accrue every month to the extend established by the reference collective agreement. The hourly leave can be consumed on an hourly basis, it can be spread out over a few days, and it doesn’t have to be booked on full-day basis. A full-time employee accrues 2.66 hours per month. If not taken, these must be paid out at the end of December of each year.
Sick leave:
Sickness allowance is a substitute allowance for remuneration starting on the 4th day of absence from work. The first 3 days are of ‘deficiency’, unless it is a relapse and, if provided for in the employment contract, are compensated at the full expense of the employer. Entitlement to benefit ceases upon expiry of the prognosis (end of illness).
The allowance is paid for a maximum of 180 days per calendar year.
Specific regulatory provisions apply to fixed-term workers, enrolled in separate management, and to seafarers with regard to both the requirements and the calculation of the benefit.
Maternity Leave:
In Italy, maternity leave (pay is ~80% of wages (state-funded)) typically lasts for 5 months, divided into:
• Pre-birth leave (2 months before the due date): The law mandates that pregnant employees take 2 months of leave before the expected delivery date. However, a recent law allows women to work until the 9th month if they wish, provided their health permits and their doctor approves.
• Post-birth leave (3 months after birth): Following the birth, the mother is entitled to 3 months of leave to recover and care for the newborn. This period can be extended in cases of premature birth or complications.
Paternity Leave:
Paternity leave in Italy is currently set at 10 working days (an optional extra day can be given if the mother gives up 1 day of her statutory maternity leave), which must be taken within the first 5 months following the birth or adoption of a child. This leave is fully paid and mandatory, ensuring that fathers are present during the critical early days of their child’s life.
Parental Leave:
The duration of parental leave (unpaid but job-protected) in Italy is structured as follows:
• Each parent is entitled to up to 6 months of parental leave, for a total combined duration of 10 months. However, if the father takes at least 3 months of leave, this can be extended
by an additional month, bringing the total to 11 months.
• For single parents, the total entitlement is 10 months of leave.
For every employee who works with a PC/Laptop for more than 20 hours a week, the company is required to offer a medical assessment to the employee, which needs to be performed:
Within 30 days from the employment date.
Every 5 years if there aren’t specific medical conditions and the employee is less than 50 years old.
Every 2 years if the employee has medical conditions (vision impediment, back injuries, stress-related diseases) or 50+.
Employers are required by law to pay an accident insurance policy for employees to cover them in case of work-related accidents.
• January 01– New Year’s Day
• January 06 – Epiphany
• [Moveable dates] – Easter Sunday (April 5 in 2026)
• [Moveable dates] – Easter Monday (April 6 in 2026)
• April 25 – Liberation Day
• May 01 – Labor Day
• June 02 – Republic’s Anniversary
• August 15 – Assumption
• October 4 – Feast of St Francis of Assisi (introduced from 2026)
• November 01 – All Saints’ Day,
• December 08 – Immaculate Conception
• December 25 – Christmas Day
• December 26 – St. Stephen’s Day
The day of the week is not relevant (if a holiday falls on a Sunday, it is normally observed on that day). In addition, many regions observe the feast day of their patron saint as a local holiday.
EU and EEA Nationals
According to the principle of free movement of persons, goods, services and capital, EU (European Union) and EEA (European Economic Area) and Swiss nationals may be employed in Italy without any authorization by the Italian authorities.
However, if their stay in Italy is for a period in excess of three months, they should apply for a permanent residency card. This is issued by the local state police office. The permit is renewable.
Non-EU, EEA or Swiss Nationals
Foreign workers must apply for their residence permit (‘Permesso di Soggiorno’) within eight days of arrival in Italy. The admission of non-EU foreign workers is subject to a mechanism of
quantitative selectivity, which is based on quotas set each year. These quotas are meant to regulate the admission of third-country nationals and their access to the Italian labor market.
The determination of annual quotas of foreign workers is conducted by the government, which sets the quota. The implementation process of the quota system is comprised up of three main steps:
- The employer issues the authorization request to the Immigration Single Desk (ISD)
- The worker issues the visa request in their country of origin
- Request and delivery of the residence permit for working purposes
Authorization Request: Employers must request authorization to hire a foreign worker through the Immigration Single Desk. Once all the checks have been made by the labor authority and by the local state police office, the authorization (‘nulla osta’) may be delivered to the applicant’s employer. The whole procedure can take up to 40 days from the application.
Visa issuance: Once the authorization is delivered to the employer, they send it on to the individual foreign worker to be recruited. The recruited worker must present in person at the Italian diplomatic representation in his or her country of origin and request a visa for working purposes. The authorization is valid for six months. During this period, the visa should be issued.
Residence Permit (‘Permesso di Soggiorno’) issuance: Once the employee has entered Italy with a work visa, they have eight days to apply for a residence permit. The work visa should be presented along with additional supporting documents. The foreign department (‘Ufficio Stranieri’) of the
local Italian police headquarters will issue the Italian residence permit, allowing the employee to both live and work in Italy.
Either party may terminate a contract of employment of indefinite duration by giving notice within the time limit and in the manner established (by statute), by custom or in equity.
In the absence of notice, the resigning party is liable to the other party to an indemnity equivalent to the amount of the remuneration that would have been due for the period of notice.
Either party may terminate the contract before the end of the term, if the contract is for a fixed term, or without notice, if the contract is for an indefinite term, if there is a cause that does not permit the continuation, even temporarily, of the relationship. If the contract is for an indefinite period, the employee who terminates the contract for just cause shall be entitled to the indemnity indicated in the second paragraph of the preceding article. The bankruptcy of the contractor or the compulsory administrative liquidation of the company shall not constitute just cause for the termination of the contract
The employer must notify the dismissal in writing to the employee. The employee may request, within eight days of the communication, the reasons for the dismissal: in that case the entrepreneur must, within five days of the request, communicate them in writing within five days. Dismissal given without complying with the provisions of the preceding paragraphs shall in the preceding paragraphs shall be ineffective.
Whether an employee resigns or is terminated with just cause, the employer is obliged to provide severance payments. The payment amount is calculated by dividing the total annual salary by 13.5, adjusted annually to keep up with inflation.
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