Global EOR Platforms vs Local EOR Providers in Italy
No legal entity needed Licensed by the Ministry of Labour Local specialist
When evaluating providers, companies usually choose between global EOR platforms and local Italy-focused EOR providers.
Understanding the difference can help you choose the right solution for hiring employees in Italy.
What is an Employer of Record in Italy?
An Employer of Record (EOR) is a service that allows companies to hire employees in Italy without establishing a local legal entity.
The Employer of Record becomes the official legal employer of the worker in Italy, while the client company manages the employee’s day-to-day work and responsibilities.
The EOR handles the administrative and legal aspects of employment, including:
- drafting compliant employment contracts
- payroll and salary payments
- social security contributions (INPS)
- mandatory insurance (INAIL)
- tax withholding and reporting
- compliance with Italian labour laws and collective agreements (CCNL)
This structure allows international companies to employ staff in Italy while ensuring all employment obligations are managed according to local regulations.
In Italy, employment arrangements involving third-party employers are regulated under specific labour leasing rules. This means that Employer of Record services must operate within the Italian legal framework governing employment agencies and workforce leasing.
Global vs Local EOR Providers in Italy
Both models can help foreign companies hire employees in Italy without opening a local entity, but they differ in structure, support, and level of local specialization.
| Feature | Global EOR Platforms | Local EOR Providers in Italy |
|---|---|---|
| Geographic coverage | Operate in multiple countries through one international platform. | Focus specifically on Italy and the local employment environment. |
| Hiring structure | Built for companies managing international hiring across several markets. | Designed for companies hiring directly into the Italian market. |
| Compliance approach | Often uses broader global processes that are adapted country by country. | Centered on Italian labor law, payroll rules, and local compliance requirements. |
| CCNL knowledge | May depend on local partners or external specialists for industry-specific agreements. | Usually has direct familiarity with collective labor agreements and their application. |
| Payroll expertise | Managed through a global payroll framework. | Handled with direct knowledge of Italian payroll, taxes, and contributions. |
| HR support | Often platform-led with centralized support teams. | Typically offers more direct local HR guidance for Italy-specific issues. |
| Best fit | Companies hiring in several countries at the same time. | Companies focused primarily on building or expanding a team in Italy. |
| Flexibility | Optimized for scale and consistency across markets. | Better suited to Italian employment nuances and tailored local support. |
Why Italy Requires Local Employment Expertise
Italy has one of the more complex employment frameworks in Europe.
Employers must comply with:
National collective labor agreements (CCNL)
Mandatory social security contributions
Regulated termination procedures
Employee protections defined by Italian labor law
Payroll reporting to multiple authorities
Because of these requirements, companies expanding into Italy often prefer working with providers that have direct experience with Italian employment compliance.
Choosing Between a Global and Local EOR in Italy
Global EOR
A global EOR platform may be the right choice if:
- You are hiring employees in multiple countries at the same time
- You want one HR platform for global workforce management
- Your team is already built around international hiring
Local EOR
A local Italy-focused EOR provider may be the better choice if:
- You plan to hire mainly in Italy
- You need deeper knowledge of Italian employment law
- You want direct support from local HR experts
- Your hiring strategy is focused on the Italian market
Here’s how you’ll benefit from our EOR services
Employing in Italy without an entity requires the use of an Employer of record provider that must be licensed by the Italian Ministry of Labour.
With our end-to-end EOR services we will employ your talents on your behalf.
Quick Expansion Without a Local Entity
Our EOR service lets you hire in Italy without setting up a company. We handle all registrations, contracts, and compliance so you can build your team and enter the Italian market faster.
Lower Cost, Zero Setup Hassle
Establishing a legal entity in Italy can take months and cost thousands. With Peoitaly as your Employer of Record, you avoid setup costs, ongoing administration, and local tax complexity.
Free Your HR to Focus on Growth
Instead of juggling legal requirements and employment rules, your internal team can focus on performance, retention, and building a great company. We take care of the paperwork—quietly and reliably.
Guaranteed Legal Compliance
We’re licensed by the Italian Ministry of Labour. Every employment contract, payroll cycle, and HR process is fully aligned with national regulations and collective agreements (CCNLs).
Simplified Payroll and Benefits
We calculate payroll, manage benefits, and handle all withholdings in line with Italian law—accurately and on time. Your employees are paid like locals, with none of the admin falling on your team.
A Local Employee Experience
From onboarding to ongoing support, your team in Italy gets the same standard of care and structure as if they were hired locally. We make sure they feel part of your company from day one.
from hiring to compliance
Ready to start?
Choosing Peoitaly means partnering with a business that combines local expertise with a global understanding, offers personalized and unique solutions, prioritizes comprehensive employee care, and uses technology to support, not replace.
Your questions, answered
Is the Employer of Record industry regulated in Italy?
The concept of a company hiring workers in Italy without establishing a local presence or representative office is not envisioned in the Italian legal system. However, the activity performed by the EOR, which involves hiring staff on behalf of a third party, is regulated by Italian law. Specifically, Legislative Decree No. 81 of June 15, 2015, establishes the rules and guidelines.
This means that any agency offering EOR services in Italy must possess the requirements outlined by the law and have the necessary ministerial authorization to conduct such activities. The provision of staffing services is a serious matter in Italy, and conducting this activity without a valid license is prohibited. The law penalizes not only those who provide the service illegally but also the client companies that use it, with fines up to EUR 80,000.
Therefore, a foreign company wishing to hire workers in Italy through an EOR must ensure that the chosen provider has obtained the necessary authorizations from the Ministry of Labor. The quickest way to verify if an EOR agency is authorized is to check if it is listed in the national register of ANPAL at this site. If the provider’s name does not appear on the list and does not include the explicit term “somministrazione,” it means that the company is NOT authorized to operate as an EOR.
Peoitaly not only holds the required license under current regulations but also offers a fully in-house managed EOR service without the use of external partners.
How many workers can I hire through an EOR?
There is no strict limit. However, to avoid the risk of creating a permanent establishment in Italy, the client company should keep the number of workers hired through the EOR to a minimum and, above all, avoid activities that would require paying corporate taxes in Italy. An example would be selling products and services in Italy to local companies and residents.
Can I always use an EOR provider in Italy?
No, not if the purpose is to evade state laws. For instance, if a foreign company needs a specific license to operate in Italy, using an EOR provider to circumvent this requirement would be against the regulations and the law.
Is it mandatory to apply collective labor agreements (CCNL)?
No, it is not mandatory. However, it is highly advisable. By applying a specific CCNL, the parameters within which one can operate are clearly defined, providing protection against legal disputes and potential claims.
Who is responsible for training workers in Italy?
Both the EOR provider and the client company share this responsibility. General training is the responsibility of the EOR (staff leasing agency), while specific training is up to the client. This is because only the client knows the specific tasks assigned to the workers and the associated risks.
Who is responsible for the health surveillance of workers?
Health surveillance is exclusively the client’s responsibility. The rationale is the same: only the company using the labor (the client) is aware of the risks associated with the workers’ tasks.
What benefits can be offered to workers hired through an EOR?
Peoitaly can offer leased workers benefits such as a company car, corporate phone and SIM, fuel card, credit card, Telepass, meal vouchers, and more.
Who handles disciplinary actions?
Disciplinary actions against workers are exclusively the responsibility of the EOR provider, as the EOR is the employer. However, disciplinary action can only be taken based on documented evidence provided by the client that validates the reason for the action.
Is the labor cost through an EOR the same as any other company in Italy?
No, the labor cost through an EOR provider is slightly higher. This is because the staffing agency is required to pay additional contributions for the training and retraining of workers.
Is there a maximum limit for hiring workers through an EOR in Italy?
Unlike in some other countries where there is a maximum time limit for staffing, in Italy, this limit does not exist. Or rather, the limit exists only for fixed-term contracts. Workers can be leased on a permanent basis.
Can a higher pension contribution be offered than that required by law?
Yes, this is possible. However, workers will also have to sacrifice a small percentage of their salary for this to happen.
Can workers be charged for the EOR service?
No, the law prohibits and penalizes the payment by workers for services offered by an employment agency (EOR).
Can a Dirigente be hired through an Employer of Record in Italy?
Absolutely yes. A Manager / Dirigente can be hired under a staff leasing contract and then assigned on a permanent basis to the client company.
Can a permanent employment contract through an EOR in Italy be terminated?
Yes, but in accordance with the law. The client who wants to terminate the employment contract must first terminate the service contract with the EOR provider. The EOR will then have the obligation to check the possibility of leasing the worker to another client. If this is not possible, the EOR must create and manage a specific training path lasting six months. At the end of this period, if the EOR has not found a new client to lease the worker to, it can proceed with termination, providing the appropriate notice.
What does the EOR service offered by Peoitaly include?
Hiring of employees: Employees are hired by Peoitaly in accordance with the current Italian labor laws, applying the appropriate CCNL (National Collective Labor Agreement). Peoitaly will handle the drafting of employment contracts according to the client’s needs and applicable laws. The client must review and approve the employment contracts before the employees are hired.
Staff Leasing: Along with being hired, employees are assigned to the client, who will assign them to the appropriate role and oversee their daily activities. The employees’ employment contracts must explicitly mention the name of the client to whom they are assigned.
Administrative management of the employment relationship: Administrative management, such as calculating and applying withholdings, payroll processing, expense reimbursement management, etc., is entirely managed by Peoitaly.
Provision of reporting: Every month, Peoitaly will provide the client with a detailed report not only of the payroll but also of the related labor costs, ensuring complete transparency.
How long does it take for Peoitaly to set this up?
As quickly as 24 – 48 hours provided our commercial terms are agreed upon.
Are client companies exposed to criminal risk if they use an unlicensed EOR?
Yes. Following Decree-Law 19/2024 (converted into Law 56/2024), criminal offences for unlawful staff supply were reinstated, and they apply to both the provider and the company that uses the service. Always verify that the provider is listed under “Somministrazione di lavoro” in the official register.
Where do I check if an EOR is licensed?
Visit the Ministry of Labour’s Albo Informatico, click Consultazione Albo, search by Ragione sociale, and confirm the Sezione: Somministrazione di lavoro.