Keith Mack
Italy's labor laws are a mix of civil and common law principles. The country's Constitution sets out various principles relevant to employment law, including non-discrimination, equality, fair pay, and the right to join trade unions. The Italian Civil Code (Codice Civile) contains specific criteria distinguishing subordinate work from self-employment, and it outlines the benefits employers must provide, such as annual leave, sick leave, and social security contributions. However, Italy also recognizes oral job offers, and its labor legislation is diverse, with laws, regulations, and statutes influencing labor relations. The country's labor laws have undergone recent reforms, such as the 2015 Jobs Act, which aimed to reduce barriers to employment by easing the process of dismissing workers.
| Characteristics | Values |
|---|---|
| Working hours | Maximum of 48 hours per week or 8 hours per day |
| Overtime | Anything over 40 hours per week is considered overtime and must be paid at least 10% above the standard rate |
| Rest period | Workers are entitled to a minimum rest period of 11 hours between shifts |
| Annual leave | No legal minimum amount of annual leave, but the Italian Civil Code states that domestic employees should get at least 8 vacation days a year |
| Sick leave | Paid sick leave is determined by employee-specific contracts, but can be extended with unpaid leave |
| Maternity leave | Women must take maternity leave 2 months before childbirth and return 3 months after. They are paid 80% of their daily salary during this time |
| Severance pay | All terminated employees receive severance pay. It is calculated by multiplying 7.5% of the annual salary by the number of years worked, plus 75% of the consumer price index increase |
| Minimum wage | No national minimum wage, but salaries must provide a living wage for the employee and their family, and be reflective of the quantity and quality of work |
| Employment contract | Oral job offers are valid, but certain clauses must be in writing within 30 days of the employee starting work |
| Probationary period | Length is determined by collective bargaining agreements (CBAs) and must be specified in the employment contract. Cannot exceed 15 days for contracts up to 6 months, 30 days for contracts between 6 and 12 months, and 6 months for contracts longer than a year |
| Non-disclosure agreements (NDAs) | Enforced in Italy and governed by the Italian Civil Code |
| Self-employment | Defined by Article 2094 of the Italian Civil Code as having "direction" and no "subordination" to an employer |
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What You'll Learn
Probationary periods
Italian labour laws are a mix of civil and common law systems.
During the probationary period, employers have the right to terminate an employee's contract without providing a reason, as long as they give written notice. This is in accordance with Italian law and the Italian Civil Code.
It is worth noting that the duration of probationary periods in Italy may also depend on the type of employment status or position held by the employee. For example, for executives, the maximum probation period is six months, while for non-executives, it is typically up to three months.
In comparison to other European countries, Italy's probationary periods tend to be shorter. For instance, in France, the probationary period varies based on the type of contract and employee, with blue-collar roles having a two-month probation, supervisors and technicians having three months, and management-level employees having four months. Similarly, in Germany, probationary periods can last up to six months, while in Austria, they usually occur during the first month of employment.
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Severance pay
Italian labor laws are based on the civil law system, which means they are primarily codified in written statutes and codes, such as the Italian Civil Code. These laws cover a wide range of employment-related topics, including severance pay.
In addition to severance pay, employers are also obligated to pay terminated employees for any unused vacation leave and permits accrued before the termination date. This is separate from the severance pay and is considered an indemnity for unused holiday time.
It's worth noting that the concept of "just cause" for termination is essential in Italian labor law. Just cause can include situations such as a material breach of contract or other reasons that lead to a deterioration of the relationship between the employer and employee. Additionally, a justified subjective reason, such as a less serious breach of contract, or a justified objective reason, such as company restructuring or position redundancy, may also be considered valid grounds for termination.
Furthermore, Italian labor laws provide protection against unlawful dismissal. For example, dismissal during pregnancy or within a year of childbirth is generally not permitted. Similarly, dismissing an employee for requesting parental leave or leave to care for a sick child is deemed null and void. These protections are in place to uphold the labor rights that are highly regarded and protected in Italy.
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Working hours
Italian labour laws are based on the civil law system.
According to labour laws in Italy and the EU, workers cannot be contracted to work more than 48 hours per week or eight hours per day. Anything beyond 40 hours per week is considered overtime, which must be paid at a rate of at least 10% above the standard rate. In practice, this is usually between 30–50% due to collective agreements. Payouts should be higher on Sundays, holidays, or during night shifts.
Workers are entitled to a rest period of at least 11 hours between work shifts. The maximum amount of overtime hours allowed per year is 250 hours. This is usually dictated by collective agreements, but in the absence of an agreement, the statutory maximum of 250 hours applies.
Italy does not have a national mandatory minimum wage, but depending on the industry, there may be guidance set through national collective bargaining agreements and individual employment contracts.
All workers in Italy have the right to paid educational leave to take study courses. This is usually around 150–250 hours in total and does not need to be related to their current job.
Oral job offers are valid in Italy, but certain clauses, such as salary and work hours, must be provided in writing within 30 days of the employee starting the job.
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Equality and non-discrimination
Italian labour laws are based on the country's civil code. The Italian Constitution guarantees equal treatment of all citizens and expressly forbids any kind of discrimination. This is further enforced by the Workers' Statute (Law no. 300 of 20 May 1970), which prohibits employment discrimination on various grounds, including sex, political opinions, union-related activity, religion, race, language, disability, age, sexual orientation, personal beliefs, and nationality.
Several other laws have been issued in accordance with European regulations, which clearly establish that it is unlawful to apply discriminatory selection criteria at work. These include Legislative Decree no. 215 of 9 July 2003, Legislative Decree no. 216 of 9 July 2003, and Legislative Decree no. 198 of 11 April 2006, also known as the "Equal Opportunities Code". This code defines discrimination as direct or indirect, with direct discrimination occurring when a person is treated less favourably than another in a similar situation due to a specific criterion, and indirect discrimination arising from neutral provisions or practices that may lead to a disadvantage for certain categories of people.
The Italian Civil Code also requires employers to provide certain benefits to their employees, including annual leave, sick leave, vacation time, parental leave, and social security contributions. Contractors are not eligible for these benefits but are protected by regulations that provide notice periods, payment terms, and protection of intellectual property rights.
In terms of enforcement, employees can file a claim for discrimination before the Labour Court, which may order the employer to stop the discriminatory conduct and remove its effects. The Court can also award damages, with the amount determined at the discretion of the Labour Judge. Additionally, there is a Commission for Equal Treatment that can promote anti-discriminatory practices, monitor employers, and represent employees in court.
Italian law does not require employers to make accommodations for employees' protected characteristics, such as allowing time off for religious practices. However, employers must make reasonable accommodations to ensure full equality for people with disabilities, as outlined in Legislative Decree no. 216 of July 9, 2003. Furthermore, Law no. 68 of 12 March 1999 mandates a statutory requirement to employ a certain number of disabled people.
To prevent and address discrimination, Italy has also introduced the Prime Ministerial Decree 'Bollino Rosa', which requires employers to create an annual report on their compliance with regulatory provisions related to equality and non-discrimination. This report enables company trade union representatives and equality advisors to monitor and verify compliance with specific indicators.
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Employment contracts
Standard Italian employment contracts include information on any trial or probationary periods, which cannot exceed six months. During this time, the notice period does not apply, and employers can terminate the contract without reason as long as written notice is provided. The maximum length of a probationary period depends on the length of the contract. For contracts lasting up to six months, the probationary period cannot exceed 15 days, while for contracts between six and twelve months, the maximum is 30 days. For contracts longer than a year, the probationary period cannot exceed six months.
Fixed-term contracts in Italy typically include specific termination clauses outlining the conditions under which the contract can be terminated early by either party. Employers may terminate a fixed-term contract before its expiration due to significant economic difficulties or restructuring needs, but they must follow specific procedural requirements. Employees also have the right to resign from a fixed-term contract before its expiration by providing notice as stipulated in the contract or according to statutory provisions.
In addition to the terms outlined in the employment contract, employees are afforded certain protections by law, such as anti-discrimination regulations. These protections are implied and need not be explicitly stated in the written agreement. Employment contracts in Italy also cover benefits such as annual leave, sick leave, vacation time, parental leave, and social security contributions. While there is no national mandatory minimum wage, guidance on wages can be found through national collective bargaining agreements and individual employment contracts.
To comply with regulations, employers should submit the terms and conditions of a new employee's contract using the "UniLav" online form to the relevant institutions, including the National Social Security Institute and the National Institute for Insurance against Accidents at Work.
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Frequently asked questions
According to labor laws in Italy, workers cannot be contracted to work more than 48 hours per week or eight hours per day.
According to the Italian Civil Code, employers must provide certain benefits to their employees, including annual leave, sick leave, vacation time, parental leave, and social security contributions.
Italian labor law includes a wide range of laws, regulations, and statutes that cover labor relations. The Constitution of Italy contains principles such as non-discrimination and equality, fair pay, equal pay for men and women, and the right to join trade unions and participate in strikes.
Article 2094 of the Italian Civil Code outlines two specific criteria: "direction" and the worker's "subordination" to the employer. Subordination is defined as a personal bond that places the worker under the managerial authority of the employer.
