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With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Italy.

01 Overview of the Labor Law System

1.Legal System

Italy operates under a civil law system. 

2.Resources and Agencies

The corpus of rules that regulate Italian Labor Law is very fragmented and multi-layered. The main provisions are included in the Italian Civil Code, but significant sections of the discipline are regulated by various laws, legislative decrees, administrative regulations, authorities’ opinions and collective bargaining agreements at various levels (national, local or company-wide). International treaties, EU regulations and principles from the Italian Constitution also apply.

02 Employment Qualifications and Classification

1.Employment Age

The minimum age to legally enter into an employment relationship is 16 years old. However, underage workers may enter employment relationships provided they have finished their mandatory school cycle and have obtained formal permission from their legal tutors. Underage work is granted special protection (for example, underage workers are forbidden from taking nightshifts).

2.Qualifications for Employment

In case of permanent establishments and branches, the local office will carry out all the compliance obligations related to employment relationships. In case of representative offices and direct hiring, the foreign employer must nominate by notarized proxy a company representative to carry out social contributions’ duties. The company representative is required to have its legal seat in Italy in order to carry out all the relevant obligations.

3.Classification of Employment

As for the type of employment relationships, Italian labor law applies the following distinctions:

? Independent contractors (self-employment)

? Para-subordinate workers

? Employees

4.Foreign Workers

Italian employers are allowed to hire foreign workers who will be granted the same labor and social security rights and obligations as domestic workers.

The hiring procedure is different for EU and non-EU workers.

03 Recruitment and Employment Contracts

1.Background Examination

The scope of the investigation shall be limited only to publicly available personal data and objective facts relevant to the employment relationship (such as confirmation of identity details, previous job experience) in order to preemptively evaluate professional abilities and eligibility for the position.

2.Contract Types

Under Italian labor law, employment contracts must be in writing. Failure to execute the contract in writing leads to the establishment of a permanent full-time employment contract.

Italian labor law establishes the permanent full-time employment relationship as the ordinary form of employment contract. However, Italian law also allows for the following alternative forms of employment relationships:

? Fixed-term employment contracts

? Part-time contracts

? Intermittent work contracts

? Apprenticeship contracts

3.Probationary Period

All types of employment contracts (fixed-term contracts too) may include probationary periods, i.e. a fixed period of time at the beginning of the employment relationship during which both the employer and the employee may terminate the relationship without notice for reasons connected with the employment relationship. 

04 Working Standards

1.Remuneration and Statutory Benefits

Remuneration is generally paid monthly; different timings may be agreed individually. The payment must be made by legal tender.

2.Social Security and Employment Taxes

Employers are required to pay mandatory social contributions to INPS and INAIL for each worker.

3.Working Hours

The standard working hours are regulated by law. Specifically:

? In general, the standard working week may not exceed 40 hours; the applicable NCBAs may establish shorter standards

? Overtime is allowed for all employees as long as it does not exceed 48 weekly hours; according to some NCBAs, such time limit may be calculated as an average over a course of several weeks.

4.Rest and Leave

Employees are entitled to 11 hours of uninterrupted daily rest every 24 hours.

Public holidays are established by law. Employees are entitled to full remuneration both during paid vacation and public holidays.

05 Occupational Health and Special Protection

1.Occupational Health and Security

”While the Italian Constitution and the TFEU establish the core principles of the subject matter, Article 2087 of the Italian Civil Code expressly provide that “the entrepreneur is required to adopt in the exercise of the business the measures which, according to the particularity of the work, experience and technique, are necessary to protect the physical integrity and moral personality of the workers”.

2.Special Protection

The most notable regulation regards the protection of people with disabilities. Along with the general provisions that grant special prerogatives to disabled individuals, Italian law also establishes that entrepreneurs that employ more than 14 workers are required to also hire some percentages of workers with disabilities, depending on the total number of employees.

06 Personal Information and Privacy

1.General Rules

The main provisions of law aimed at the protection of employees’ privacy and personal data are included in the Legislative Decree no. 196/2003 and the EU Regulation no. 2016/679.

2.Transnational Transfer

Within the EU, international transfers of personal data are relatively free, as long as they are made in compliance with EU law (i.e. the person has provided their consent, or the transmission is required to comply with provisions of law).

Transfer of data outside the EU, on the other hand, is subject to strict requirements, as there might be a lower level of protection in the non-EU/EEA country of destination.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Anti-Discrimination and Anti-Harassment statutory provisions are directly connected to the principle of equality enshrined in the Italian Constitution (article 3) and the EU fundamental Treaties.

Italian law pays special attention to measures aimed at preventing and repressing discriminatory acts on the basis of gender. To that end, the so-called Equal Opportunity Code (Legislative Decree no. 198/2006) has been renewed and integrated in 2021 with a series of new provisions and measures to favor women’s employment.

2.Protective Characters

Harassment or unwanted conducts based on race, ethnic origin, religion, personal beliefs, disability, age, nationality or sexual orientation, with the purpose or effect of violating a person's dignity and creating an intimidating, hostile, degrading, humiliating, or offensive environment, are also considered discrimination.

08 Internal Policies

1.Applicability

It is quite ordinary for companies to apply internal policies to regulate specific aspects of employment relationships. Internal policies may apply to all types of employees and employment contracts.

2.Validity

Internal policies do not require the employees or unions’ approval to be directly implemented, even if they originated from the parent company. However, if the subject matter of the policy derogates from the mandatory provisions of law or regards matters that require unions’ approval, such regulations are null and void.

3.Whistleblowing

The Italian Whistleblowing regulation is quite new, as it was introduced only in 2023 with the implementation of the EU Directive no. 1937/2019. The above statute regulates the different types of whistleblowing procedures (or “protected channels”) which companies must activate to allow whistleblowing reports also anonymously.

09 Transactions

1.Employment Relationship

Italian law establishes that in the event of a transfer of business (i.e. M&A operations, equity and asset transfers) the employment relationship automatically continues with the new employer, and the employee retains all rights arising therefrom.

2.Compensation

Under Italian law, employees are not entitled to any compensation due to M&A or equity/asset transfer.

10 Termination of Employment

1.Termination Grounds

Under Italian law, dismissals are subject to strict restrictions. In fact, employees may be lawfully dismissed only because of a "just cause" (so called “giusta causa”) or based on “justified grounds” (so called “giustificati motivi").

2.Termination Procedure

Termination must always be communicated in writing. That said, Italian law regulates different termination procedures for individual dismissals:

? In case of a termination due to disciplinary issues, the termination must follow the specific procedure established for the application of disciplinary measures: first, the employer must notify in writing the conducts that appear disciplinarily relevant; the employee is then entitled to five days to provide their justifications; after such term has expired, the employer may proceed with the transmission of the dismissal letter.

? In case of termination grounded in organizational or economic reasons, the procedure depends on whether the employee was hired before or after March 7, 2015 in companies exceeding 15/60 headcount.

3.Termination Protection

Some employees’ categories are granted specific protection against dismissals. Specifically:

? Married women workers cannot be dismissed from the day of publication until one year after the wedding;

? Working mothers and fathers cannot be dismissed from the date of the beginning of the pregnancy until their child reaches one year of age, unless for specific reasons;

? Employees on sick leave cannot be dismissed for the duration of a protected period, whose duration is set by the applicable NCBA.

4.Severance and Compensation

Italian law provides that, upon termination of the employment relationship, the following sums are mandatorily due:

? The so-called TFR (Trattamento di Fine Rapporto, to be translated as “severance pay”);

? The other indemnities for accrued and unused holidays and permits, unpaid additional monthly instalments, etc.

5.Wrongful Termination

Any employee who deems their termination unfair or ill-grounded must challenge it in writing within 60 days of the delivery of the letter. Within 180 days of such formal challenge, the employee must initiate the legal proceedings or risk forfeiture.

6.Mass termination and Layoffs

In case a company with more than 15 employees intends to terminate more than 4 employment relationships in the same business unit within 120 days, the mass layoff procedure applies.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

Confidentiality agreements are quite common and are usually signed at the same time as the execution of the employment contract or later, in case of mutual termination agreements. Italian law does not establish any limitations as to the types/groups of workers that may sign such agreements. Furthermore, confidentiality agreements do not require economic consideration to be executed.

2.Non-Compete and Non-Solicitation

Non-Solicitation agreements and clauses are considered a specification of the general prohibition of unfair competition, so they may be executed without any economic consideration for the employee.

Italian law only provides a specific regulation for Non-Compete agreements, since such agreements limit the employment rights of the workers. In particular, the relevant provision of law establishes that Non-Compete agreements must be executed in writing, must provide for an appropriate economic consideration and must clearly establish reasonable limits of scope, time and place.

12 Work Representation and Trade Unions

1.Work Representation

Neither the State nor employers may control or interfere with unions’ activities. Unions are also fully free in terms of agreements negotiations.

2.Trade Unions

According to the resulting set of rules, union representation within companies may take one of the following two forms:

? Company Union Representatives (RSA)

? Unified Union Representatives (RSU)

13 Dispute Resolution

1.Procedures & Enforcement

The Italian Civil Procedure Code establishes that all claims related to employment relationships must be brought forth in front of specialized sections of the civil courts following a specific, especially quick judicial procedure.

2.Waiver & Enforcement

Employees may agree to waive any rights that are not considered unwaivable under the applicable law, which is why settlement agreements following termination of employment relationships usually contain very detailed lists of waivers on the employees’ behalf.

14 Others

1.Latest Development & Trends

The most recent hot topics in Italy are related to the following subject-matters:

? Establishment of a minimum salary set by law

? Resignation by conclusive facts

? Points-based score license

? Various earlier retirement options and the revision of the legal retirement age

? Workers’ participation in company management

? Work managed through digital platforms

2.Cultural and Religious Considerations

Work culture in Italy tends to revolve around small or medium businesses which take pride in their craftmanship and attention to detail, features that may clash with the logics of maximization of efficiency and profit brought by foreign investors.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Alberto De Luca is partner at DL Law – Avvocati Giuslavoristi law firm. Over the course of his 25 years of experience, he specialized in all aspects of labor and employment law and related litigation, advising major national and multinational clients. His practice also covers private equity and M&A transactions, as well as large reorganizations and restructurings. 

Translator

Zhou Hao, Master of Laws, Associate at Anli Partners. Areas of expertise: Labor Law, Dispute Resolution, ESG Compliance.