In Italy, upon the termination of an open-ended employment contract, both the employer and the employee are entitled to a notice period unless the agreement is terminated for just cause (a reason that does not allow the continuation of the employment relationship). The duration of the notice period typically varies according to the employee’s length of service and professional level and is established in the applicable collective bargaining agreement.
If the decision to terminate a labor agreement comes from employers, they can exempt employees from working during the notice period by providing a corresponding payment in lieu of notice.
In Italy, immigration rules vary based on the employee's nationality. European Union (EU) and European Economic Area (EEA) nationals can work in Italy without a work permit. However, foreign nationals from non-EU/EEA countries generally need a valid work permit issued by their Italian employer and must obtain a work visa from the Italian consulate in their country of residence before entering Italy.
The hiring of non-EU/EEA nationals is subject to a yearly quota system, with exemptions for highly skilled professionals (although they must still complete the required application process for a work permit and visa). Employers can only submit a work permit application after the annual flow planning decree is published in the Official Gazette of the Italian Republic, which establishes the number of work permits that can be issued. Additionally, employers must obtain an entry clearance document (Nulla Osta) from the Italian Ministry of Labor, confirming a shortage of Italian workers for the position. The applicant must present this document during their visa interview.
Highly qualified foreign nationals can work in Italy with an EU Blue Card. It is a specific type of residence permit issued by the Police Chief to highly-qualified foreigners who have been issued entry authorization by the One-Stop Shop for Immigration, following the signing of a work-related residence contract and the relevant notification to the Police Headquarters. The Blue Card is valid for 2 years if the employment contract is permanent. If the contract is fixed-term, the residence permit is valid for 3 months longer than the expiration date of the employment contract.
Italy has introduced enhanced checks on employer declarations for all employees (including volunteers and research workers) to reduce fraud and false declarations. The maximum number of permit applications has been limited to 3 per private user employer, also applicable for seasonal workers. Applications may be rejected where the employer is unable to demonstrate the capacity to employ the foreign worker under the declared employment conditions. Entry clearance may also be refused where the employer has been convicted within the previous three years of offenses relating to illegal immigration, labor exploitation, human trafficking, or the illegal employment of foreign nationals.
Foreign nationals can legally reside and work while waiting for the conversion of their residence permit. For victims of labor exploitation, domestic violence, and those under social protection, the residence permit duration is increased to 12 months, from 6 months earlier.
Employees employed in family care or social-health care for elderly or disabled persons are permanently excluded from the quota system till 2028, as a trial, but capped at 10,000 applications per year. For the first 12 months of legal employment, they may only perform the authorized activity, and can change employers only with authorization from the local labor inspectorate.
Under the Constitution, employees in Italy are entitled to paid annual leave from the first day of their job, and this entitlement cannot be waived.
The labor law stipulates that employees are entitled to at least 4 weeks of paid annual leave. At least 2 weeks must be taken in the year the leave was accumulated, and the other 2 weeks can be accumulated and used in the next 18 months after the year of accumulation ends.
Working time is defined by the labor law of Italy as "any period during which the worker is at work, available to the employer, and in the exercise of their activity or duties."
The law sets a standard workday at 8 hours, and, based on a 5-day work week, a full work week is 40 hours. Collective agreements can set shorter duration. Any hours over 40 per week are considered to be overtime.
Employees have the right to a rest period of at least 24 consecutive hours every 7 days, usually coinciding with Sunday, but numerous exceptions apply, for example, with regard to seasonal activities, manufacturing operations with continuous cycles, and hospitals. Most collective agreements provide for a premium rate of pay for employees who work on Sunday, as well as a day off in lieu during the week.
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.
Maternity leave is paid at a rate of 80% of their average monthly wage established annually by law for the type of activity carried out and is supported by the National Institute of Social Security (INPS). Employers pay the allowance to employees and then get refunded from the INPS. In the event of termination of pregnancy beyond the third month, an allowance is paid for a period of 30 days.
Per the Constitution of Italy, all employees have the right to a salary proportional to the quality and quantity of their work and sufficient to ensure them and their families a “free and dignified existence.” The law does not set a minimum wage guaranteed for all workers, but it is common practice for companies to refer to the National Collective Labour Contracts (CCNL), which cover workers who are not affiliated with trade unions. Minimum wages vary between sectors, depending on skill level, and are often set by national collective agreements.
The law explicitly provides that the salary paid to employees must be stated in a payslip or salary statement. Salary must be paid monthly or on a piece-rate basis. Employers also commonly provide an annual 13th-month payment (tredicesima mensilità) once a year on the occasion of the Christmas holidays. It usually corresponds to 1 month’s remuneration. In addition, collective agreements or even individual contracts may include a 14th payment (quattordicesima mensilità), usually issued in July.
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