Embarking on a business venture in Italy? Navigating the complexities of employment regulations and administrative tasks can be a formidable challenge. In our latest blog post, we delve into the indispensable role of an Employer of Record (EOR) in Italy.

Discover how an EOR can be your strategic ally, simplifying compliance, optimizing onboarding processes, and providing a streamlined approach to managing your global workforce. Let's unlock the keys to a successful expansion into the Italian market.

Italy Labour Market: Overview

 
Employment Laws in Italy
Capital: Rome
Language: Italian
Currency: Euro (EUR)
Payroll Cycle: Monthly

Employment Contract:  In Italy, there is no specific requirement for a written employment contract to be concluded. If written, the contract is not required to be in Italian. However, to be valid, certain clauses must be in writing, including the probationary period, fixed-term period, and non-competition clauses. 

Minimum wages: There is no statutory minimum wage in Italy. However, it is decided by collective bargaining agreement on a sectorial level. Pay rates must be agreed upon directly with the employer through collective bargaining or other means of negotiating a fair living wage. 

Employer Taxes:  The employer’s share of these numerous contributions ranges from approximately 30% to 34% of taxable compensation.

Working Hours: Employees must work 40 hours per week. The duration of the weekly working time cannot exceed 48  hours a week, including overtime. 

Annual Leave: All employees are entitled to a minimum of four weeks (20 days) paid annual holiday. At least 2 weeks of vacation must be taken during the entitlement year. Vacations cannot be replaced by monetary compensation before the employment is terminated. 

Probation Period: Probationary periods are common in Italy and the length varies depending on the terms of the applicable collective bargaining agreement (CBA). However, in all instances, the maximum term for a  probationary period is six months.

Notice Period: There is no statutory notice period in Italy, but agreed-upon notice periods must be included in employment contracts and collective bargaining agreements.

Termination: An employer can terminate an employee based on two reasons:  

- An objective reason such as redundancy due to economic reasons. 

- A subjective reason such as a breach of their contractual duties 

Severance Pay: All employees in Italy receive severance pay at the end of their employment.

National Holidays: 12 National Holidays  

1. New Year’s Day 
2. Epiphany 
3. Easter Sunday 
4. Easter Monday 
5. Liberation Day 
6. International Workers’ Day o Republic Day 
7. Assumption Day 
8. All Saints’ Day 
9. Immaculate Conception on Christmas Day

Benefits of Using an Employer of Record (EOR) in Italy

Considering expanding your business to Italy? Harness the power of an Employer of Record (EOR) to navigate the complexities and propel your success. Here are the key benefits:

Compliance Assurance:

Ensure adherence to Italy's intricate labor laws and regulations. An EOR keeps you compliant, minimizing legal risks and ensuring smooth operations.

Efficient Onboarding:

Streamline the onboarding process for your international workforce. An EOR handles administrative tasks, allowing you to focus on integrating new talents seamlessly.

Global Workforce Management:

Easily manage your diverse team. An EOR provides a centralized platform for payroll, benefits, and HR processes, enhancing overall efficiency.

Cost Management:

Optimize costs with a predictable and transparent model. An EOR handles payroll, taxes, and benefits, allowing you to budget effectively.

 Accelerated Market Entry:

Swiftly penetrate the Italian market. An EOR expedites your entry, enabling you to establish a presence without the burden of complex administrative processes.

Strategic Focus:

Redirect your focus to strategic business objectives. With an EOR handling day-to-day HR and administrative tasks, you can concentrate on driving growth.

Employer of Record in Italy, Offered by Dhi ADT

With our Dhi ADT PEO and EOR Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing talent or speed to market and no more worrying about local laws, immigration visa and work permit services, tax compliance, or managing international payroll.  

Dhi ADT takes care of everything in 30+ countries. For more details contact us about our Employer of Record in Italy.