How to Check if Your Employer of Record (EOR) Is Licensed in Italy

When hiring employees in Italy through an Employer of Record (EOR), compliance is critical.

Not all EOR structures are the same, and companies should understand how their provider operates in Italy before hiring employees.

This guide explains how to verify whether your EOR is properly structured and compliant.

Why Licensing and Structure Matter

In Italy, employing workers on behalf of another company falls under regulated activities such as:

• Staff leasing (somministrazione di lavoro)
• Employment intermediation
• Temporary agency work

These activities are overseen by the Italian Ministry of Labour and Social Policies and require authorization through ANPAL.

This means your EOR must operate through a compliant and authorized structure.

Step 1: Ask Who the Legal Employer Is

Start with the most important question:

👉 Who is the legal employer of the employee in Italy?

A compliant setup should clearly define:

• The legal entity employing the worker
• Where that entity is registered
• Its role in payroll, contracts, and compliance

If this is unclear, that’s a red flag.

Step 2: Verify the Italian Entity

Your EOR should have (or work through) a registered Italian entity.

Ask for:

• Legal company name
• Registered address in Italy
• Company registration details

You can verify Italian companies through the Chamber of Commerce (Registro delle Imprese).

Step 3: Check Authorization or Employment Structure

Depending on the model, your EOR should either:

• Be authorized for labor intermediation / staff leasing
or
• Operate through a compliant local partner that is authorized

Ask directly:

👉 “Are you authorized to employ workers on behalf of another company in Italy, or do you operate through a licensed partner?”

A credible provider will answer clearly.

Step 4: Understand the Employment Model

Make sure you understand how employment is structured:

• Direct employment by the EOR
• Employment through a local partner
• Contractor model (not the same as employment)

This affects compliance, risk, and employee protections.

Step 5: Review the Employment Contract

A compliant Italian employment contract should include:

• Reference to applicable CCNL (collective labor agreement)
• Salary structure and benefits
• Working hours and leave
• Termination rules

If the contract does not align with Italian labor standards, there may be compliance risks.

Step 6: Confirm Payroll and Social Contributions

Your EOR should handle:

• INPS (social security) contributions
• INAIL (insurance) registration
• Payroll tax withholding
• Monthly reporting

Ask how these are managed and under which entity.

Step 7: Look for Transparency

A compliant EOR should be transparent about:

• Who employs the worker
• How compliance is handled
• Whether partners are involved
• What responsibilities they manage

If answers are vague or overly simplified, investigate further.

Common Red Flags

Watch out for:

• Unclear or hidden employment structure
• No identifiable Italian legal entity
• Contracts that do not reference Italian labor law
• “Contractor” arrangements presented as employment
• Lack of clarity around payroll taxes or contributions

Questions to Ask Your EOR Provider

Before choosing an EOR in Italy, ask:

• Who is the legal employer of the employee?
• Do you operate directly in Italy or through a partner?
• Are you authorized or working with a licensed entity?
• How do you ensure compliance with CCNL agreements?
• Who manages payroll and tax reporting?

Clear answers to these questions indicate a reliable provider.