Hiring in Italy requires more than simply selecting a candidate and drafting a contract. The Italian system is structured and formal, with multiple legal checkpoints that must be satisfied before, during, and after the onboarding process.
Whether you’re hiring remotely, setting up a new operation, or expanding a current team, it’s essential to understand what’s legally required of you as an employer. Here’s what you need to know.
Have the Right Contract in Place
A written employment contract is mandatory in Italy and must meet specific standards. It should be tailored to the type of employment relationship and refer to any applicable national or sectoral collective bargaining agreements (contratti collettivi).
- Include all essential details such as job title, duties, working hours, and salary.
- Clearly state the duration of the contract, whether it’s fixed-term or permanent, and define probation periods.
- Reference the correct collective agreement and ensure the terms match industry norms.
Clarity in the contract helps reduce disputes later on and forms the foundation for compliant payroll and social security contributions.
Notify the Authorities Before the Employee Starts
One of the most critical legal requirements is the pre-hire notification. This is not just a formality, though, as failing to comply could lead to administrative penalties.
A. Centro per l’Impiego Notification
The employer must notify the local employment centre at least one business day before the employee’s official start date.
B. Digital Submission
This notification must be submitted electronically, often via regional platforms, and should include details such as contract type, job description, and salary.
This step formally registers the employee in the national employment system and must be completed for every hire, regardless of contract type or hours.
Register with Social Security and Insurance Institutions
Social contributions in Italy are mandatory, and employers are responsible for registering new hires with the appropriate agencies.
- INPS (Istituto Nazionale della Previdenza Sociale) covers pension, sick leave, unemployment, maternity, and family-related benefits.
- INAIL (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro) provides insurance for workplace accidents and occupational illnesses.
These registrations are essential before the first day of work. Contributions must be paid regularly, and records maintained accurately. Working with a payroll provider can simplify this process and reduce errors.
Collect the Right Documents from the Employee
Employers must obtain and store several documents as part of the hiring process. These are not only necessary for payroll and tax registration, but also serve to verify the individual’s right to work.
- Codice Fiscale – The Italian tax identification number, required for all official documentation.
- Proof of Identity (CIE) – Typically a national ID or passport, depending on the candidate’s residency.
- Permesso di Soggiorno – For non-EU citizens, a valid residence permit is essential.
Failure to collect these documents correctly could result in non-compliance with immigration or tax laws.
Respect Collective Bargaining Agreements
Italy’s labour market is deeply influenced by collective bargaining agreements (CBAs), which define minimum standards across industries. These agreements apply even if your company is foreign-owned and unfamiliar with local labour norms.
- Wages, benefits, notice periods, and job classifications are usually set by the CBA.
- Probation periods, working time, and termination procedures are also typically outlined.
It’s not enough to offer terms that meet legal minimums—you must also align with sector-specific agreements that apply to your business and the type of role.
Navigating Italy’s employment regulations may seem daunting, but following each of these legal requirements carefully helps prevent costly penalties and protects both employer and employee.
For a broader look at how to hire in Italy—from sourcing talent to onboarding and compliance—read our full guide:
How To Hire Employees In Italy: A Guide For Foreign Companies, or contact PeoItaly today for tailored support.
