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What is an EMPLOYER OF RECORD (EOR) in Italy and how it works

An Employer of Record (EOR) in Italy is a company that provides the service of hiring employees on behalf of a client company that does not have a physical presence in the country.

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: https://myanpal.anpal.gov.it/albi-informatici/. 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.

Our team consists exclusively of professionals with extensive experience in the human resources sector and deep local knowledge. Choosing Peoitaly's EOR service means relying not just on a provider but on a true consulting agency capable of safely guiding clients through unfamiliar territory.


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