Hiring in Italy
Italy is a hub for skilled workers in tech, design, and fashion. As part of the European Union, Italy has many standardized regulations when it comes to employment, but it also has some unique rules of its own. It’s important to understand Italy’s employment laws before hiring there.
Employment relationships in Italy are governed by such laws as the Italian Civil Code, Legislative Decree No. 81/2015, and the “Jobs Act” reforms. These laws outline workers’ rights, employer obligations, and procedures for labor disputes. In Italy, many labor rules are determined via collective bargaining by a professional organization. Laws may give guidelines (including minimums and maximums) for certain aspects of employment contracts, but some aspects of employment in Italy will vary by industry.
Additionally, Italian law places specific regulations on the use of temporary and agency workers. Staffing agencies can provide workers to third-party companies only in cases of temporary, occasional, or transitory tasks. Employers must ensure that these arrangements comply with legal requirements and that agency workers receive equal treatment in terms of compensation and working conditions. Employers are required to provide written employment contracts detailing terms and conditions, including job responsibilities, compensation, working hours, and benefits. Compliance with statutory requirements such as minimum wage standards, social security contributions, and working time regulations is essential.
Because of the complexity of Italy’s labor and tax laws, compliant employment contracts are a critical business requirement. With Safeguard Global as your partner, you can hire employees in Italy with confidence, knowing that every contract meets legal standards. We also provide guidance on cultural expectations and hiring best practices, while helping you stay current with regulatory changes.
Relying on an employer of record (EOR) in Italy
An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Italy. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Italy’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Italy.
The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.
Visit our employer of record services page to learn how we can help you meet your international employment needs in Italy.
Doing business in Italy
Global PEO Services (GPS) helps companies hire employees in Italy without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Italy, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Italian labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Italy. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Country Overview
Italy, a country with a long Mediterranean coastline, has over 60 million people and a rich, historical, and worldwide popular culture in arts, architecture, music, and food. Popular architectural sites in Italy include the Leaning Tower of Pisa, the Basilica of St. Mark, and the Coliseum. In addition, cities such as Venice, Florence, and Rome, which are among the oldest cities globally, are popular tourist destinations.
Capital City
Rome
Currency
Euro (EUR)
Language
Italian
Government
Parliamentary Republic
It is permissible under Italian labor law to draw up permanent employment contracts in writing, but it is not required.
Some of the details typically mentioned in the written contract include:
- The start date, length of the employment relationship, and the type of employment relationship
- Duration and conditions of the notice period
- and more
The different types of employment relationships are:
- Permanent Employment – Unless specified in the employment contract, employment in Italy is deemed indefinite.
- Fixed-Term Contracts – Per Italian law, fixed-term contracts should not exceed 24 months, including renewal. Employers can renew fixed-term agreements up to 4 times as long as the total length does not exceed 24 months. The contract becomes permanent after five renewals.
- Temporary Employment – The term “temporary employment” is not defined explicitly in Italian labor law. It does, however, provide for a variety of flexible work arrangements, including:
- Fixed-term work
- Intermittent work
- Solidarity contracts
- Apprenticeships
Probationary Period
In Italy, a probationary period lasts up to 6 months for managerial employees, and for all other employees, it could last up to 3 months. However, the maximum probationary term may vary depending on the industry or the relevant collective bargaining agreement.
Work/Time Regulations
A typical workday is 8 hours long, while a standard workweek is 40 hours long (based on a 5-day cycle).
Leaves
Employees in Italy are entitled to the following leaves:
- Annual leave – Per Italian labor law, employees are usually entitled to at least four weeks of paid annual leave.
- Maternity leave – Italy’s female workers are typically entitled to at least 20 weeks of paid leave under Italian labor legislation. It is usually divided into eight weeks before birth and 12 weeks following birth, with the latter two being variable.
- Sick leave – Employees in Italy are generally entitled to three days of paid sick leave per year. The National Institute for Social Security reimburses employers for providing a statutory sick benefit to their employees (INPS).
- Paternity leave – Per the Italian labor law, fathers continue to be absent from work for the duration of the maternity leave.
Public Holidays
The following are the statutory national holidays observed in Italy:
- January 1 – New Year’s Day
- January 6 – Epiphany
- April 4 – Easter Sunday
- April 5 – Easter Monday
- April 25 – Liberation Day
- May 1 – Labor Day / May Day
- June 2 – Republic Day
- August 15 – Assumption of Mary
- November 1 – All Saints’ Day
- December 8 – Feast of the Immaculate Conception
- December 25 – Christmas Day
- December 26 – St. Stephen’s Day
Benefits
In Italy, the Ministry of Labor and Social Security governs the National Social Security Institute (INPS), which provides different pension benefits.
Some examples of social insurance programs are:
- Dependents’/Survivors Benefit – If the deceased employee made at least 780 weekly contributions or 260 weekly contributions, at least 156 of which were made in the five years preceding the date of death, then the survivors are eligible for a pension. The survivor’s benefit is calculated based on the retirement of the deceased employee.
- Life and Disability Insurance/Benefit – Invalidity pensions are paid to insured workers who suffer from a permanent inability to perform any work. They have contributed for at least five years, three of which were in the five years preceding the application.
- Unemployment Insurance – The New Social Insurance for Employment (NASpI) is a monthly payment made to those laid off involuntarily.
Termination
The Italian Civil Code does not mandate the length of the notice period. Nonetheless, the employee’s years of service and professional level and the relevant collective bargaining agreement are usually the determining factors.
Visa/ Work Permits
Italy is part of the Schengen Borders Agreement, together with 25 other European countries.
Foreigners with a Schengen sojourn permit from another Schengen country do not require a visa for stays of less than three months if they are not coming to work or study.
There are typically three categories of visas issued by the Italian Ministry of Foreign Affairs and International Cooperation:
- Uniform Schengen Visas (USV) – Uniform Schengen Visas are type C visas (short-stay or travel visas) valid for up to 90 days and single or multiple entries into all Schengen countries.
- Limited Territorial Validity Visas (LTV) – Limited Territorial Validity Visas are only valid in the Schengen country from which they were issued and are valid for humanitarian or national interest purposes.
- Long Sojourn or National Visas (NV) – Long Sojourn or National Visas are type D visas valid for stays longer than 90 days for single or multiple entries.
Different immigration rules apply to foreign workers of various nationalities. For example, the European Union (EU) and the European Economic Area (EEA) nationals can work in Italy without a work permit. However, before entering Italy, foreign nationals from non-EU/EEA countries must typically have a valid work permit from their Italian employer and obtain a work visa from the Consulate of Italy in their country of residence.
Accounting
Companies in Italy must maintain consistent accounting records in compliance with the Italian Civil Code (ICC) and the Generally Accepted Accounting Principles (Italian GAAP/IAS – IFRS).
Taxes
Corporate Tax
The standard corporate tax rate is 24%.
Value Added Tax (VAT)
The standard VAT rate in Italy is 22%. It applies to most goods and services.
Reduced rates of 4%, 5%, and 10% are also available for certain goods and services.
Filing Dates
Typically, the annual corporate income tax returns (IRES and IRAP) must be filed electronically within 11 months of the end of the financial year, except for extraordinary transactions like mergers or demergers.
Penalties
The tax rules contain an all-inclusive set of penalty and interest provisions for non – payment and failed to register, with the amounts typically determined based on the specific breach (above particular thresholds, tax violations are criminal offenses).
The Italian Data Protection Authority (Garante per la protezione dei dati personali) is an autonomous institution established to protect primary rights and freedoms related to the processing of personal data and ensure individuals’ dignity.
The Italian Criminal Code administers bribery offenses committed by public officials, private individuals, and legal entities. The penalties include imprisonment and a monetary fine.
With our Global PEO/Employer of Record services, companies can expand into Italy and hire their employees without having to establish a branch office or subsidiary in Italy.
- Your candidate is hired via our Italy PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
- Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll – all in full compliance with Italy laws.
- Global PEO Services experts manage all day-to-day operational issues such as employee expenses, and severance/termination if required.
- With no contractor risks, pass on the compliance burden to Global PEO Services.
Spin Off/M&A Support
- Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.
24/7 Support in 170+ Countries
- Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
- We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.
Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.
Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.
Contact Us
Ready to hire in Italy?
Tell us your hiring plans and a Global PEO specialist will map out the right path, with full compliance, no obligation.
HR & Benefits in Italy
Your Employees, Our HR
Get the HR support you need in Italy without setting up a legal entity or hiring HR personnel. Save time and enjoy peace of mind as our experts manage all aspects of your Italy HR.
Italy Recruitment Solutions
Need help finding talent? Our dedicated team of experienced recruiters can help you find and hire the employees you need, fast. We have an in-depth understanding of local job markets and provide you with access to exclusive talent networks, so you are always choosing from the best available candidates.
A solution for every staffing need:
- Contingent Hire
- Permanent Hire
- Recruitment Process Outsourcing (RPO)
Best in Class Employee Benefits
We provide high-quality benefits packages for your employees and their families. Our robust heath and benefits plans are designed to enhance local mandatory benefits while addressing employee expectations and cultural nuances.
Our employee benefits plans include:
- Top of the line health benefits (medical, dental, vision)
- Life insurance and short-term / long-term disability
- Employee assistance program – phone/online counseling & support
- Employee wellness program – health & wellness classes
- Business travel insurance
Guaranteed HR Compliance
Stay compliant without the complexity. Our experts manage the HR compliance requirements for your Italy teams and consistently monitor changes to labor laws so you are always informed and up to date.
Payroll in Italy
Pay Employees Without the Hassle
Pay employees in Italy without setting up a legal entity. Get peace of mind as we manage all aspects of your Italy payroll, ensuring your employees are always paid accurately, on time, and in their local currency.
Cross-Border Payments & Payroll Compliance
Run compliant payroll in Italy no matter where your business is located. Our Italy payroll experts get you set up fast and ensure you are always in compliance with local payroll requirements.
Struggling to Manage Payroll for Independent Contractors?
Pay your contractors easily and without the risk. Rather than taking on the liabilities associated with employing an independent contractor, we allow you to hire them as employees through our Italy PEO. They continue to work for you, while we manage all aspects of payroll, HR, and compliance.
The Solution to Low Headcount Payroll
Eliminate complexity and reduce the cost associated with running payroll for just a few employees. With Global PEO Services, you gain full access to our pre-existing Italy payroll infrastructure, teams, and processes. Stay flexible, save time, all while getting the payroll services and support you need.
Payroll & PEO in Italy
Italy Payroll Outsourcing & Management Services
Hire and pay employees in Italy without setting up a legal entity. With our Italy payroll and PEO services, you select the candidate, and we handle the rest.
After successfully hiring and onboarding your employees, we manage all aspects of the payroll process, ensuring your employees are always paid accurately and on time.
Our Italy payroll experts have an in-depth understanding of local payroll requirements and provide you with in-depth guidance and compliance support.
Our Italy PEO Payroll Solutions Cover:
Struggling to Manage Payroll for Independent Contractors?
Global PEO Services eliminates the complexity and liabilities associated with employing and paying independent contractors. We allow you to hire your contractors as employees through our Italy PEO. The individual continues to work for you, while we manage all aspects of payroll, HR, tax, and compliance.
The Solution to Low Headcount Payroll
Finding a payroll option for countries where you have low headcounts can be a challenge. Global PEO Services provides the solution. By using our Italy PEO to manage your payroll, you leverage our pre-existing payroll infrastructure, teams, and processes, even if you only need payroll for just one employee. Stay flexible, save time, all while getting the payroll services and support you need.