Employees, freelancers, and consultants that collaborate in a coordinative and continuous manner with the engaging company.

Employment agreements may be for a fixed-term or an indefinite term or on a part-time work arrangement.

The employment agreement shall contain specific details (name of the hiring company and the employee, duration, duties and job title assigned, a probationary period if any, salary, place of work. Also, specific covenant such as non-competition covenant shall be included in order to be effective.

Yes although certain items would be proportionate based on the reduced working time.

Yes but the assignment is conditional upon the employee's consent.

Employees assigned to the going concern transferring pursuant to article 2112 of the Italian civil code transfer along with the going concern by operation of law under the same terms and conditions of employment. Employees have no right to object to the transfer.

A change of control resulting from a share deal would not entitle specific statutory rights unless specifically provided by the applicable national collective agreement.

Generally, the employer is prevented from making changes to the terms of the employment unilaterally, especially as to the salary package. There are however certain exceptions (e.g. changes to the duties assigned) within specific limits.

Except for the termination, while a probationary period is pending, the termination of an open-ended employment relationship existing with an employee (not holding an executive position) is strictly limited. Dismissal is allowed only for (i) just cause or (ii) a justified reason. In this latter case, the employee is entitled to the notice period. Executives are less protected since they may be terminated for just cause or any other "reasonable" reason by serving the notice period due.

Since COVID 19 emergency the Government has introduced several measures also to support employees and safeguard their job, including the employer’s temporary prohibition – save for very few exceptions - to serve collective dismissals and dismissal for objective/business-related reasons extended at last to 30 June 2021 and, under specific conditions, extended to 31 October 2021 pursuant to Law Decree no. 41/2021.

The consequences of an unlawful individual dismissal vary depending on the size of the employing entity (above 15 employees or not) and the hiring date (before or after 7 March 2015).

The consequences of an unlawful individual dismissal (and not qualifying as null and void) would be the following, briefly:

• For employees hired before 7 March 2015 by a company with more than 15 employees:

1. Dismissal based on the evident absence of the fact grounding the alleged justified reason (subjective or economic reasons) or cause: employee’s reinstatement in the job place (or option for an indemnity of 15 months of fully loaded salary) plus damages up to 12 months, plus social charges due from the dismissal until the reinstatement[1];
2. Other cases of dismissal served on the basis of grounds that do not qualify as justified objective or subjective reason or cause: the employer must pay the employee only an indemnity from 12 to 24 months of fully loaded salary.
3. Breach of the relevant procedure: the employer is ordered to pay the employee only an indemnity ranging between 6 and 12 months of fully loaded salary;

• For employees hired after 7 March 2015 by a company with more than 15 employees:

1. Dismissal lacking a justified reason (objective or subjective) or just cause an indemnity exempted from social charges equal to 2 months of fully loaded salary for each year of service in any case minimum 6 months and up to 36 months[2] if the company has more than 15 employees.
2. In case of dismissal for a subjective reason or just cause in which it is proven in the trial the absence of the material conduct contested to the employee, consequences under paragraph 1. above apply.
3. Breach of the procedural requisites would entitle to an indemnity exempted from social charges equal to 1 month of fully loaded salary for each year of service in any case minimum 2 and maximum 12 months.

Damages triggered by an unlawful individual dismissal served by a Company with less than 15 employees are reduced compared to the above.

[1] The Constitutional Court has ruled on 1st April 2021 that the part of the law provision providing for the Judge’s possibility to either apply the reinstatement or indemnity measure in case of unlawful dismissal grounded on a justified objective reason is constitutionally unlawful.

[2] The Constitutional Court has ruled on 8 November 2018 that the part of the law provision providing for the determination of the indemnity based on the employee’s seniority is constitutionally unlawful.

Companies are implementing policies that give whistle-blowers protection also in terms of non-retaliation in accordance with the relevant applicable law provisions.

Besides the European regulation on data protection, the employees' right to privacy is protected by the Employees Statute. In this latter provision there are certain rules which prevent, among others, the employer from conducting investigations on the employees' religion, political affiliation, trade union affiliation, sexual orientation, etc.). Moreover, there is a specific law that prevents employers from monitoring the employees' activity. In the case of camera installation that may even indirectly monitor the employees' work performance, such installation requires an agreement with the unions or authorization from the competent labor authorities. The breach of the aforesaid provision would expose to the nullity of any action of the employer based on the aforesaid investigation (e.g. nullity of a disciplinary measure/procedure) also exposing to anti-union behavior and in most severe cases to sanctions also of criminal nature.

The employer has a duty under article 2087 of the Italian civil code to guarantee and safeguard the employee's health and safety. Additional the Employees' Statute specifically prohibits any investigation on aspects of the employees (e.g. religion, politics, sexual orientation, etc.) that could lead to discriminatory behaviors. Moreover, a discriminatory dismissal is null and void and entitles the employee to reinstatement (or to opt for an indemnity of 15 months of fully loaded salary) plus damages equal to the fully loaded salary due between the termination date and the actual reinstatement, deducted the salary possibly received while not reinstated, in any case not below 5 months of salary. Social charges are also due from the termination date and the reinstatement.

Yes, employees have the right to vacation, medical and parental leave, the terms of which are set by law and most usually by the national collective agreement that may provide for broader protection (e.g. longer annual paid vacation, etc.).

Specific rules have been recently enacted to phase COVID 19 emergency, which also includes special provisions on parental leave upon meeting certain conditions that are currently valid until 30 June 2021.

Yes, restrictive covenants are allowed although subject to strict conditions. In particular, under article 2125 of the Italian civil code, an employee may be bound to a post-termination covenant not to compete provided that the latter is separately remunerated, limited to a specific object, duration (3 years for non-executives and 5 years for executives) and a territory. The lawfulness of the covenant is conditional upon its reasonableness, which is evaluated based on a combined evaluation of all the above items.

No, the dismissal would be null. The remuneration for a covenant not to compete shall be "adequate," having regard to the overall restriction arising therefrom, and determined (for this reason most Courts agree that it shall be paid after the termination of the employment rather than while the employment is ongoing). The measure of an adequate remuneration is not set by law and depends on the broadness of all other terms; by way of market practice, it can range from 35-40% up to 100% of the salary previously received while the employee was in force.

Under Italian law, the employer and the employees are required to pay (pro-rata and on a monthly basis) mandatory social security contributions in connection with pension schemes, health and safety insurance, accidents at work insurance, maternity and other events to the State Social Security Institute (“INPS”) and to the National Institute for Accidents at Work (“INAIL”).

The amount of the contributions varies in accordance with the employment category and the gross salary. Contributions due by employees are withheld by the employers from the salary and paid directly to the relevant authorities.

As to the contributions due by employers, the cost in respect of each employee varies every year and is calculated based on the salary of the employee according to the rates specified by the social security authorities.

Usually, the social security contribution rate charged to the employers amounts to roughly 30-35% of the gross salary, while the social security contribution rate charged to the employee amounts to roughly 10%.

In addition to that, “Complementary Pension and Health Insurance Funds” may be established to guarantee further protection to the employees. They are usually financed through contributions of the employer and the employees and they are usually provided by the Collective Agreements.

Among the statutory benefits - additional to the Statutory pension scheme and insurance against accidents at work and those set by the applicable collective agreements - it is worth noting that in any case of termination of the employment, regardless of the reason grounding the latter, the employee is entitled to an end-of-service allowance, which is equal to the total salary paid to the latter during his/her employment, divided by 13.5 (the so-called trattamento di fine rapporto or TFR).

Until January 30, 2007, the TFR had to be set aside by the employer every year and paid to the employees, as a lump sum, on termination of the employment. Starting from the aforesaid date, the employees may choose whether the amount due as TFR is to be accrued – by the employer or by INPS, to which employers with more than 50 employees must confer it – and paid on termination of the employment, or if the latter shall be contributed to an integrative pension fund.

Only in the public sector.

If the employee already had access to pension benefits, such benefits continue to be granted even if work continues beyond retirement age.

Except for healthcare workers, there is not a statutory obligation for employees to get the COVID-19 vaccine. There are no exceptions to the lack of a statutory obligation to get the COVID-19 vaccine to save for healthcare workers.

As per current Italian rules, refusal to get a vaccine is not a reason for dismissal. However, it may be evaluated, case by case, and on the basis of the duties performed by the employee (e.g. duties for which he/she is in contact with the public or duties for which distancing is not possible), other possible measures such as for example the temporary assignment to other duties or putting the employee on holiday. It is however a case-by-case evaluation to be made on the basis of the actual modality of performance of the work activity and the duties/type of business organization.

During COVID-19 emergency (absent a Government shut-down) the employer may require that employees return to work unless: a) the parties have entered into an agreement that provides otherwise; b) the employees belongs to one of those specially protected categories (e.g. employees with severe disability, etc.) who are entitled to perform their work remotely.

Save for the aforesaid exceptions, the employee’s refusal to return to work may lead to disciplinary measures that, based on the severeness of the employee’s conduct, may lead to the dismissal.