Permanent Employment Contract (Contratto a Tempo Indeterminato):

• This is the most common and desirable type of contract, offering job security and
• There's no predefined end date for the employment relationship, and it continues as long as both parties
• Employees are entitled to full benefits, including paid annual leave, sick leave, and severance pay in case of termination

Fixed-Term Employment Contract (Contratto a Termine):

• This contract has a predetermined end date specified in the
• Renewals are possible under certain conditions, but there are legal limitations on the number of renewals allowed to prevent permanent employment without the full benefits of a permanent
• For most employees, the total duration of a fixed-term contract cannot exceed 12 This includes the initial contract period and any renewals.
• If a fixed-term contract is renewed or extended exceeding the legal limits without objective reasons, the contract automatically converts into a permanent employment contract

The National Institute for Social Security ("Instituto Nazionale della Previdenza Social" (INPS)) and the National Health Service ("Servizio Sanitario Nazaionale" (SSN)") are the national social security and health insurance programmes of Italy, respectively, and they provide coverage for all life risks for Italian citizens. The extensive social systems in Italy, which include the following, are completely available to employees and their families:

• Health, maternity, paternity, disability, and death insurance
• Occupational accident and illness insurance
• Government pension contributions
• Family allowances
• Unemployment benefits

White-Collar Workers (Impiegati)

• Perform non-manual administrative, technical, or clerical
• Typically require a high school diploma or vocational
• Examples include accountants, sales representatives, and customer service
• Generally follow set procedures and instructions.

Middle Managers (Quadri)

• Supervise or coordinate teams of employees within
• Implement strategies and directives set by
• Often require a university degree and relevant
• Enjoy slightly more freedom and autonomy than lower levels.

Executives (Dirigenti)

• Highest level of employee, occupying top leadership
• Typically responsible for making strategic decisions and managing entire departments or
• Usually require a postgraduate degree and extensive
• Have specific legal regulations governing their contracts and working conditions.

Public Holiday

• New Year's Day: Wednesday, January 1
• Epiphany: Monday, January 6
• Easter Sunday: Sunday, April 20
• Easter Monday: Monday, April 21
• Liberation Day: Friday, April 25
• Labour Day: Thursday, May 1
• Republic Day: Monday, June 2
• Assumption of Mary: Friday, August 15
• All Saints' Day: Saturday, November 1
• Feast of the Immaculate Conception: Monday, December 8
• Christmas Day: Thursday, December 25
• St. Stephen's Day: Friday, December 26

Annual Leaves

Employees in Italy are entitled to a minimum of 26 days of paid annual leave per year in 2024.

• Minimum Requirement: This is the legal minimum mandated by Italian Employers can offer additional paid leave days as a benefit.
• Carry Over: Unused annual leave days can be carried over to the following year, but they must typically be used by the end of June.
• Payment: Employees are entitled to receive their normal salary while on annual
• Splitting Up Leave: Annual leave can be taken in installments throughout the year, allowing for flexibility in scheduling vacations or personal time off.
• Public Holidays: Public holidays are separate from annual There are 11 national public holidays in Italy each year, plus one day for each municipality's patron saint day. Employees are entitled to a paid day off for each of these holidays.

Sick Leaves:

Employees  are  entitled  to  a  minimum  of  180  days  of  partially  paid  sick  leave  per  year. To receive paid sick leave, a medical certificate (certificato medico) issued by a doctor is mandatory.

• The first 3 days are considered "waiting days" ("giorni di carenza") and are typically paid in full by the
• From the 4th day onwards, the payment is divided between the employer and the National Institute for Social Security (INPS):
  • Between days 4 and 20: Employees receive 100% of their salary:
    • 50% covered by INPS
    • 50% covered by the employer
  • From day 21 to 180: Employees receive 100% of their salary:
    • 66% covered by INPS
    • 34% covered by the employer

Marriage leave:

• 15 consecutive days with normal monthly
• Employees typically need to inform employers at least 6 days in advance about the wedding and intention to take the leave.
• Leaves must be taken within 30 days of wedding

Maternity Leave:

Mothers in Italy are entitled to a total of 5 months of maternity leave in 2024.

• This leave can be divided in various ways, but it typically consists of:
  • 2 months before the expected due date
  • 3 months after childbirth

Maternity leave in Italy is a partially paid leave.

• Employee National Social Security (INPS): 80% of salary is covered by INPS during the entire 5
• Employer can choose to top up the remaining 20% of salary so employees receive full pay during This is not mandatory by law, but it's a common practice.

Paternity Leave:

• Fathers are entitled to paternity leave of 10 days after the birth (or adoption) of a
• Paternity leave is fully paid by the Italian Social Security (INPS).
• Fathers are also entitled to paternity leave in case of serious health conditions preventing the mother from caring for the baby during the first 10 days of the child's life or from the first day of the 28th week of

Notice period in Italy depends upon the length of contract, level of employee and way of dismissal.

In case of resignation:

In case of termination:

Overtime pay is mandatory in Italy. Employees can work a maximum of 250 Hours of overtime in a year. Overtime pay is calculated as below:

• First 8 hours in the week: 15%
• Successive hour in the week: 20%
• Night Shift (22 PM to 6 AM): 50%
• Public holidays: 30%

Dirigenti are not entitled for any overtime pay

Quadri are entitled for overtime pay in case of night shift and public holidays only

The National Institute for Insurance against Accidents at Work and Occupational Diseases (INAIL): is the primary body responsible for worker compensation in Italy.

Payments:

• Day of Injury: The employer typically pays the employee for the entire day of the
• Waiting Period (Giorni di Carenza): The following 3 days are considered a waiting period and are usually paid in full by the employer.

From Day 4 Onwards: INAIL takes over responsibility for compensation. Here's the breakdown:

• 60% of the daily wage (based on average daily salary) is paid from day 4 to day
• 75% of the daily wage is paid from day 91 There's no time limit for this compensation.

Here's a 5 step process of how you can do this with us:

Step 1: Cooperation Agreement/MSA

• We will share Intake Sheet to collect company
• Based on the data provided in intake sheet, we will prepare Cooperation Agreement/MSA for review and

Step 2: Assignment Specification (Purchase Order)

• We will prepare Assignment Specification based on the candidate information provided in the Intake Sheet for review and signature.

Step 3: Employment Agreement/Offer Letter

• Once the AS is signed, we will prepare draft Employment Agreement for
• After the approval, we will share the final Employment Agreement to the candidate for review and
• We will share the final copy of the signed EA to all the

Step 4: Onboarding process

We will share the following documents with the candidates for signature

• Payment form (in order for the employee to provide their bank account IBAN)
• Deductions form and TAX BONUS (to be returned filled in and signed by employee);
• Privacy form (to be returned signed by employee);
• TFR (severance pay) choice form (to be returned filled in and signed by employee);
• Decreto trasparenza disclosure (to be supplemented with the part relating to the formation and to be delivered to the employee);
• Certificate for social security “cap” (if any) (to be returned filled in and signed by employee); Once the documents are received, we will register the employee with authorities.

Step 5: Immigration Process (If any)

• Our Finance team will share the invoice for immigration process if
• Once the immigration invoice is cleared, we will start the onboarding

• Intake Sheet (Onboarding Sheet)
• Passport Copy
• Residence permit/ Work permit (if any)
• Updated CV
• Higher Degree
• Copy of Codice Fiscale

Offboarding process can be classified into 3 categories.

1. Completion of employment period (and no renewal).
2. Pre mature termination by mutual
3. Forced

1.  Completion of employment period (and no renewal)

• Generally, fixed-term contracts end automatically upon the expiry date or completion of the specific task as outlined in the contract.
• Employees are entitled for severance pay (Trattamento di Fine Rapporto - TFR) which is accrued over the duration of the employment.
• It's calculated as roughly 4% (Gross annual salary/13.5/12) of the employee's total salary earned during their entire employment.

2.  Pre mature termination by mutual consent.

• This happens because of resignation or both the parties decide to terminate the contract In any case the standard notice period should be respected.
• Employees are entitled for severance pay (Trattamento di Fine Rapporto - TFR) which is accrued over the duration of the employment.
• It's calculated as roughly 4% (Gross annual salary/13.5/12) of the employee's total salary earned during their entire employment.

3.  Forced Termination

Terminating an employment contract in Italy depends on whether it's a fixed-term or indefinite-term contract. FIXED TERM CONTRACT:

• Can’t be terminated by either party without prejudice to the application of penalties. It may be terminated for subjective reasons if there is a behavior of the employee that – after the due procedure – can be sanctioned with the dismissal.
• Compensation can range from 5 to 6 times the monthly salary, depending on the size of the company.
• Employee will also be entitled to the severance pay (Trattamento di Fine Rapporto - TFR) which is accrued over the duration of the employment.
• Outstanding Salary and Benefits: Any unpaid wages, vacation time, or other benefits earned by the employee are due.

INDEFINITE TERM CONTRACT:

• To end a permanent contract (justified objective reason) – other than disciplinary dismissal - art. 3 of Law 604/1966 establishes that the justified objective reason for the dismissal consists of reasons relating to the productive activity, the organization of work and its regular Pursuant to art. 5 L. 604/1966 the burden of proof of the existence of the justified objective reason, which must be specified in the same notice of dismissal, is placed on the employer. In order for a dismissal for justified objective reason to be configured, it is necessary that multiple requirements occur simultaneously, such as:
  • an effective and concrete corporate reorganization that results in the suppression of one or more specific jobs (such as the closure of an office or a department or the cessation of business activity itself);

• the causal link between the business need that determines the suppression of the specific job and the dismissal of that certain worker;
• the inability to relocate the worker using them for equivalent or, alternatively, lower-level tasks,

i.e. to implement the so-called repêchage (this requirement of jurisprudential elaboration).

• Furthermore, dismissal for justified objective reasons can also be based on the company need to reduce personnel costs, by reducing the number of employees assigned to one or more company functions.
• Compensation: If reinstatement isn't pursued, the employee might receive compensation equal to 15 months'
• Employee will also be entitled to the severance pay (Trattamento di Fine Rapporto - TFR) which is accrued over the duration of the employment.
• Outstanding Salary and Benefits: Any unpaid wages, vacation time, or other benefits earned by the employee are due.