COUNTRY

An employment contract in Italy can be either oral or written, but written contracts are the norm. There is no form that must be followed. All fixed-term contracts must be in writing, and if the contract is to include a probation period or a non-competition clause, these clauses must be in writing. In addition, the employer is required to provide a written statement to the employee disclosing certain information within 30 days of the start of employment. Employment contracts can be indefinite or for a fixed term. Fixed-term contracts may not last longer than 12 months, after which they may be extended for up to 12 additional months if there is a compelling reason. A fixed-term contract may be renewed a total of four times within 24 months.

The standard workweek in Italy is 40 hours over five days. Employees may not work more than 48 hours over seven days, including overtime, averaged over four months. Collective bargaining agreements may modify these rules. There is no legal limit to the number of hours an employee can work in one day, although there is a practical one, because employees must have a rest period of 11 consecutive hours every 24 hours. The amount of overtime an employee may work is generally set by contract or collective bargaining agreements, but overtime may not exceed 250 hours per year. Pay rates for overtime or work on a holiday are set by collective bargaining agreements. Night work (work between midnight and 5 a.m.) is capped at eight hours in a 24-hour period and generally limited to 80 nights per year. These terms may be modified by collective bargaining agreements.

Most employees in Italy receive sick leave, with the terms specified in a collective bargaining agreement or an individual employment contract. Employees typically receive partial pay from social security. Some collective bargaining agreements require that the employer supplement the social security payment to ensure the employee receives full pay. Employees are typically entitled to six to 12 months of sick leave, and some collective bargaining agreements provide for unpaid leave after the paid sick leave is exhausted.

Female employees in Italy are entitled to at least 20 weeks of compulsory maternity leave. Typically, it is split into 8 weeks before birth and 12 weeks after. In addition to paid leave, a mother can choose to take up to 6 months of unpaid leave. Single mothers are eligible for up to 10 months of unpaid maternity leave following the 20 weeks of paid leave. If an employee decides to forgo maternity leave, her working hours may be reduced to 6 hours per day.

The labour law of Italy allows fathers to be absent from work for the entire maternity leave period (3 months after the birth or for the amount of unused maternity leave remaining) in the following circumstances:

• Cases of serious illness or death of the mother

• Abandonment of the child by the mother

• When the male worker has exclusive custody

In these cases, a father will be granted the same benefits as a mother on maternity leave.

Italy has no legal minimum wage. Minimum wages are normally set by collective bargaining agreements. Bonuses are common in Italy. Many employees receive a 13th-month salary at Christmas.

Employees receive four weeks of paid leave in Italy. Some collective bargaining agreements provide for more leave.

In Italy, the public holidays are:

• New Year’s Day

• Epiphany

• Easter Monday

• Liberation Day

• Labor Day/May Day

• Republic Day

• Ferragosto (Assumption of the Virgin Mary)

• All Saints’ Day

• Feast of the Immaculate Conception

• Christmas Day

• St. Stephen’s Day

Italy has universal healthcare.

Employers may terminate employees for either objective reasons, which are generally connected with economic factors or the needs of the business, or subjective reasons, which are normally related to the employee’s performance or breaches of the employee’s contractual obligations to the employer. The employee must always be given a written notice of termination. The notice period is normally set by the collective bargaining agreement. In cases where the employee has committed serious misconduct, the employer may terminate the employee immediately. If the employee is being terminated for less serious misconduct, the employer must provide the employee a written statement explaining their breach of the employment contract and allow the employee five days to respond. If the employer still wishes to terminate the employee after reviewing their response, the employer must send a second letter, explaining why the employee’s response does not justify the misconduct, and provide the employee a letter of termination stating the reason for the termination. Special rules apply to executives. Employees who are in a probation period may be terminated with no notice. Employees who wish to resign must provide written notice to the employer, except during the probation period, when no notice is required.