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Written Agreements

The labor law of Italy stipulates that permanent employment contracts may be drawn in writing, but it is not mandatory. There is, however, certain information (specified by statute) regarding the employment relationship that the employer must provide to the employee in writing within 30 days of the beginning of the employment relationship. Employers may fulfill the written information requirement by providing the prospective or onboarding employee with the applicable regulatory references, collective bargaining agreement, or corporate agreement.

Fixed-term and part-time employment contracts must be concluded in writing.

Employers can include a non-compete clause in employment contracts to prevent former employees from disclosing information acquired during their tenure or engaging in competitive activities after the employment relationship has concluded. The duration of this restriction must not exceed 5 years in case of managers and 3 years in case of other employees. Employers must compensate employees for the duration.

Oral Agreements

Although the labor law of Italy does not prohibit oral contracts, the best practice is to utilize written agreements. Both fixed-term and part-time employment contracts must be concluded in writing.

Implied Agreements

The labor code of Italy does not contain provisions or guidance on implied contracts. The best practice in the industry is to be cautious of implied contracts by frequently utilizing or adapting written agreements.

Working time is defined by the labor law of Italy as "any period during which the worker is at work, available to the employer, and in the exercise of their activity or duties."

The law sets a standard workday at 8 hours, and, based on a 5-day work week, a full work week is 40 hours. Collective agreements can set shorter duration. Any hours over 40 per week are considered to be overtime. Overtime work is restricted to 2 hours per day and must be approved by the employer.

New Year’s Day (January 1), Epiphany (January 6), Easter Monday (date may vary), Liberation Day (April 25), Labor Day (May 1), Republic Day (June 2), Feast of the Assumption (August 15), All Saints’ Day (November 1), Immaculate Conception (December 8), Christmas Day (December 25), Saint Stephen’s Day (December 26), Patron Saint’s Festival (date may vary).

Employment relationships in Italy may begin with a probationary period. Per the Italian Civil Code, any probationary period must be stipulated in the written contract or letter of employment.

Once the probationary period has been completed, the contract is considered to be for an indefinite period, and the probationary period counts toward the employee's seniority. The probationary period can last for a maximum of 6 months for managerial employees and 3 months for all other employees. Maximum probationary period lengths may differ depending on the industry or the applicable collective bargaining agreement. During the probationary period, either of the parties may end the employment relationship without notice or severance.

Notice Period

In Italy, upon the termination of an open-ended employment contract, both the employer and the employee are entitled to a notice period unless the agreement is terminated for just cause (a reason that does not allow the continuation of the employment relationship). The duration of the notice period typically varies according to the employee’s length of service and professional level and is established in the applicable collective bargaining agreement. In the absence of an agreement, written notice must be provided at least 5 days before the dismissal occurs.

If the decision to terminate a labor agreement comes from employers, they can exempt employees from working during the notice period by providing a corresponding payment in lieu of notice.

Severance Benefits

When an employment contract is terminated, even for just cause, the employer must pay the following:

• TFR payment calculated according to the formula of the employee's annual salary divided by 13.5, plus 1.5% for each year of service and added compensation for inflation
• Pro-rata supplementary monthly payments if the employer made such payments during the employment relationship
• Payment in lieu of unused holidays

Minimum Wage

Per the Constitution of Italy, all employees have the right to a salary proportional to the quality and quantity of their work and sufficient to ensure them and their families a “free and dignified existence.” The law does not set a minimum wage guaranteed for all workers, but it is common practice for companies to refer to the National Collective Labour Contracts (CCNL), which cover workers who are not affiliated with trade unions. Minimum wages vary between sectors, depending on skill level, and are often set by national collective agreements.

The law explicitly provides that the salary paid to employees must be stated in a payslip or salary statement. Salary must be paid monthly or on a piece-rate basis. Employers also commonly provide an annual 13th-month payment (tredicesimamensilità) once a year on the occasion of the Christmas holidays. It usually corresponds to 1 month’s remuneration. In addition, collective agreements or even individual contracts may include a 14th payment (quattordicesimamensilità), usually issued in July.

Overtime, Holiday & Vacation Pay

In Italy, the maximum regular weekly working hours are set at 40 hours; however, they can be varied by collective labor agreements. Any hours worked over 40 are considered to be overtime. Overtime work is restricted to two hours per day. The average workweek cannot exceed 48 hours, including overtime (average workweek is calculated on a period of up to four months and six or 12 months if set by collective agreements). If there is no collective discipline regarding limits on overtime, the maximum amount of overtime an employee may perform is 250 hours in a year.

The basic rule is that Sunday work is prohibited, but numerous exceptions apply, for example, with regard to seasonal activities, manufacturing operations with continuous cycles, and hospitals. Most collective agreements allow Sunday work but provide for a premium rate of pay for employees who work on that day as well as a day off in lieu during the week. Employees working on public holidays in Italy are entitled to extra payment. The amount of payment is agreed in collective agreements.

Employees cannot take pay instead of annual leave except when the employment relationship is terminated. They are entitled to their regular wages while on annual leave.

Visas

The following types of visas are granted by the Italian Ministry of Foreign Affairs and International Cooperation:

• Uniform Schengen Visas (USV) - type C visas (brief-sojourn or travel visas), valid for up to 90 days, for single or multiple entries to all Schengen countries
• Limited Territorial Validity Visas (LTV) - only valid for the Schengen country that issued the visa and used for humanitarian reasons or national interest reasons
• Long Sojourn or National Visas (NV) - type D visas, valid for stays longer than 90 days, for single or multiple entries

Work Permits

In Italy, immigration rules vary based on the worker's nationality. European Union (EU) and European Economic Area (EEA) nationals can work in Italy without a work permit. However, foreign nationals from non-EU/EEA countries generally need a valid work permit issued by their Italian employer and must obtain a work visa from the Italian consulate in their country of residence before entering Italy.

The hiring of non-EU/EEA nationals is subject to a yearly quota system, with exemptions for highly skilled professionals (although they must still complete the required application process for a work permit and visa). Employers can only submit a work permit application after the annual flow planning decree is published in the Official Gazette of the Italian Republic, which establishes the number of work permits that can be issued. Additionally, employers must obtain an entry clearance document (Nulla Osta) from the Italian Ministry of Labor, confirming a shortage of Italian workers for the position. The applicant must present this document during their visa interview.