Probationary periods, known as ‘periodo di prova,’ are a standard practice in Italy. The duration of these periods varies depending on the provisions outlined in the relevant collective bargaining agreement (CBA). Nevertheless, in every case, the maximum duration for a probationary period is six months.

As a general rule, employees are expected to work 40 hours per week, unless National Collective Labor Agreements (NCLA) offer more advantageous terms. The maximum weekly working hours, including any overtime, cannot surpass 48 hours. This calculation is based on a timeframe of up to four months, although the NCLA may extend this period to six months.

The limit for overtime work is determined either by the relevant National Collective Labor Agreement (NCLA) or by a maximum of 250 hours per year. Overtime should only be requested under exceptional circumstances, technical necessities, productivity requirements, or specific events. Employees who work overtime must be compensated with a salary increase. However, different regulations may apply to middle managers and executives.

The annual gross salary is distributed over 13 or 14 monthly payments, contingent upon the employee’s affiliation with a specific National Collective Labor Agreement (NCLA). The 13th month’s salary is disbursed in December, while the 14th month’s payment is issued in June.

In 2023, employees covered by the “Tertiary Distribution and Services” National Collective Bargaining Agreement (NCBA) are eligible for a one-time bonus of EUR 350. This bonus will be distributed in two installments: EUR 200 in January 2023 and EUR 150 in March 2023.

Italian regulations regarding dismissal are intricate and subject to frequent changes. The criteria for dismissal vary depending on several factors:

•  Employment tenure: distinguishing between hiring before March 7, 2015 (“old hiring”) and after this date (“new hiring”).
•  Employer headcount: categorized as “Big Employers” if they exceed certain thresholds.
•  Employee classification: executives are subject to different dismissal rules.
•  Reason for dismissal.

To assess the appropriate procedure and consequences of a dismissal, the following factors should be considered:

• Employment tenure: Different rules apply based on whether the employment began before or after March 7, 2015.
• Employer headcount: “Big Employers” are those exceeding specific thresholds.
• Employee category: Executives follow distinct dismissal regulations.

Collective dismissal:
Occurs when a “big employer” terminates five or more employees within a specific timeframe due to company reorganization, shutdown, or reduction. Dismissal criteria are determined by law or union agreements.

Individual dismissal:
Must be communicated in writing, stating the grounds for dismissal. Legal grounds include just cause, justified subjective reasons, or objective business reasons.

Executive dismissal:
Executives can only be dismissed for objective reasons related to the employer’s economic, organizational, or production needs, or subjective reasons related to performance. Following serious misconduct, immediate termination is possible, but specific disciplinary procedures must precede subjective dismissals.

Prohibited dismissals:
Certain dismissals are null and void, including those based on retaliation, discrimination, or targeting female workers due to marriage or pregnancy, as well as the dismissal of fathers taking paternity leave. Reinstatement and back payment of salaries are required in such cases.

The employee’s notice period will usually be set out in the CBA and is calculated in accordance with the employee’s length of service, position and level in the company.
Garden leave does not exist under Italian law. Indeed, an employee has a right to maintain work, even during the notice period. Therefore, to continue paying salary t during the notice period without the employee working is only permitted with the consent of the employee.

In the event of termination, the employer is obligated to provide the employee with a severance indemnity known as “Trattamento di Fine Rapporto” (TFR). The TFR entails payment equivalent to 1/13 of the annual gross global salary for each year of service. Accruals for the TFR are recorded in the financial statements throughout the employment period. Alternatively, at the employee’s request, these accruals can be directly transferred to a complementary pension fund. Opting for this alternative exempts the employer from making a TFR payment upon termination.

In 2019, the European Court of Justice ruled that companies are required to establish an objective, dependable, and easily accessible system for recording the working hours of their employees.

In Italy, unions are predominantly structured according to industry sectors. This means that all employees working within a particular industry are affiliated with the same union, regardless of their specific job function or professional qualifications.

In Italy, employment contracts typically entail an indefinite duration, as the labor framework encourages the recruitment of permanent subordinate employees. However, there exist various types of subordinate employment contracts that provide some flexibility to both employers and employees under specific conditions.

Employers have the option to hire fixed-term employees for a maximum period of 12 months, provided that they do not exceed 20% of the total workforce. However, a different threshold may be established by the relevant National Collective Labor Agreement (NCLA). Fixed-term contracts can extend beyond 12 months, up to a maximum of 24 months, including extensions and renewals, under the following circumstances:

• If specified in the applicable collective agreements.
• If there are technical, organizational, or productive needs recognized by the parties involved, provided these needs are not covered by collective agreements and are established before December 31st, 2024.
• If there is a requirement to replace other employees.

An extension beyond 24 months is permissible only if at least one of the aforementioned temporary reasons is present, but in any case, the total duration cannot exceed 24 months.

Moreover, under certain conditions, an employee working under a fixed-term contract for more than six months may be entitled to priority hiring if the employer decides to hire permanently for the same position.

Termination of employment under a fixed-term contract is generally not permitted by either the employee or the employer before the expiration of the term, except in cases of just cause.

Italian legislation mandates that employees’ net salaries must be clearly indicated on their pay slips. These pay slips should specify the period of service to which the salary pertains, along with details regarding any overtime amounts and their corresponding values. Furthermore, the payslip must comprehensively outline all components contributing to the total amount paid, including any deductions made in accordance with Italian law.

Every employee is entitled to a minimum of four weeks (20 days) of paid annual leave. However, Collective Bargaining Agreements (CBAs) and individual contracts may grant employees a longer holiday period. The minimum annual leave cannot be substituted with a payment in lieu, except in cases of employment contract termination.

Regarding carry-over rules, employees can carry over unused holiday entitlement into the following holiday year without any restriction on the total accumulated days.

In case of employee illness or injury, Collective Bargaining Agreements (CBAs) or individual contracts typically outline provisions for paid time off. During this leave, employees retain their job and are entitled to receive their salary for the specified period as determined by the applicable CBA or individual employment agreement. Following this period, the employer may terminate the employee’s contract by providing notice, usually ranging between six and 12 months. This policy applies whether the absence is due to a single period of sick leave or multiple occurrences.

Statutory sick pay commences on the fourth day of sickness, with the initial three days considered “waiting days,” typically covered in full by the employer. The statutory sick pay is limited to a maximum of 180 days per calendar year. From the fourth to the 20th day of illness, the statutory sick pay generally amounts to 50% of the average daily pay, increasing to 66% from the 21st to the 180th day. Throughout the sickness period, the employment relationship remains legally binding, allowing the employee to continue accruing all employment rights, including seniority, holidays, and permits.

The Carers’ Rights legislation in Italy offers various types of paid ordinary or extraordinary leave entitlements for subordinate employees falling under the following categories:

• Employees who are parents or caregivers of disabled children.
• Employees who are married to, or have relatives who are, adult dependents with serious disabilities, as determined by a state medical panel.

Employees have the right to request up to two years of extraordinary leave, during which they receive a monthly payment equivalent to their regular monthly salary, up to a fixed gross annual threshold established annually by the Ministry of Labor.

Additionally, all employees are entitled to three days of paid leave per year in case of the death or documented serious illness of a spouse, a relative within the second degree, or a stable cohabitant.

Each parent is entitled to unpaid leave to care for a sick child under three years old, with the condition that both parents cannot take leave simultaneously. Furthermore, each parent has the right to up to five days of unpaid leave per year to care for a sick child between three and eight years old, subject to the same condition that both parents cannot take leave simultaneously.

Italy observes a total of 12 public holidays, which are separate from the minimum holiday leave entitlement. Notably, holidays that occur on weekends are not rescheduled for weekdays. Additionally, major cities may commemorate a regional holiday on the feast day of their patron saint.

Female employees are entitled to 26 weeks of maternity leave, which can begin as early as eight weeks before the expected delivery date. The remaining weeks can be taken after childbirth. For women expecting their third child or more, the paid maternity leave duration is 12 weeks, with six weeks before and six weeks after the expected delivery date. Maternity leave is granted with full pay if the employee has completed at least 80 days of service with the employer in the 12 months before her expected delivery date. Maternity benefits are paid at the average daily wage rate for the duration of the absence from work. Additionally, female employees receive a medical bonus of INR 3,500 if health benefits are not provided by the employer. If a woman’s job allows, she may work from home after utilizing maternity benefits, based on mutual agreement between her and the employer.

The law also provides for adoption leave of 12 weeks for women adopting a child under three months old. A commissioning mother, who provides her egg for embryo implantation in another woman, is entitled to 12 weeks of leave from the date the child is handed over to her. The woman giving birth, known as the host or surrogate mother, is not eligible for this leave.

Employers are required to inform female workers of their rights under the Act at the time of appointment, both in writing and electronically.

While paternity leave is offered to government employees, it is not mandated in the private sector, and its provision is at the discretion of the employer.

Maternity Rights:

Female employees are entitled to abstain from work for two months before and three months after childbirth. However, with a medical certificate, this mandatory maternity leave can be postponed and extended for up to five months, all taken after childbirth.

Under specific circumstances, a female employee can request early maternity leave, particularly if her duties involve heavy lifting or physical strain. In such cases, a medical certificate and authorization from the Employment Office are required, without the need for employer consent.

Throughout pregnancy and a period following childbirth, employees must not be assigned tasks that pose a risk to their health.

During maternity leave, employees receive an allowance from the National Social Security Body, amounting to 80% of their salary.

In situations of voluntary or therapeutic termination of pregnancy after 180 days from conception, or in cases where the child dies during maternity leave or childbirth, female employees can return to work at any time with at least ten days’ notice to the employer, subject to specific medical approval.

After maternity leave, employees have the right to return to their previous job. Employers are prohibited from terminating female employees during pregnancy and until the child reaches one year of age, except under certain circumstances. Resignations or mutual termination agreements made by pregnant women or parents of children under three years old must be validated and confirmed through a special procedure; otherwise, they are deemed ineffective.

Paternity Rights:

If the mother is unable to take maternity leave due to death, illness, or exclusive custody by the father, the father is entitled to the full or remaining period of maternity leave.

Employees on paternity leave receive the same allowance, rights to return to work, and protection against dismissal as those on maternity leave.

Since January 1, 2020, fathers are required to take ten days of paid paternity leave within five months of the child’s birth. Additionally, they can take an extra day within the same timeframe, in place of the mother’s leave.

Parental Leave:

Parents are entitled to take parental leave to care for their children during the first 12 years of their child’s life. Both parents can take up to six months of leave, or one parent can take up to ten months.

Adoption Rights:

Employees who have adopted children are entitled to three months of maternity or paternity leave during the first three months after the child is integrated into the family. Adoptive parents receive the same financial benefits as parents of biological children and can also take parental leave for the first three years of the child’s integration into the family, with the same entitlements as parents of biological children.

Leave due to Child’s Illness:

Parents can take time off work when their child is ill during the first eight years of the child’s life.