Hiring in Italy involves a structured series of steps that can feel unfamiliar to foreign employers. Unlike some countries where onboarding may be more informal or decentralised, Italy maintains a well-regulated process rooted in legal compliance, contractual precision, and public registration.
Whether you’re hiring your first employee in Italy or expanding an existing team, following the correct sequence is essential to avoid delays, fines, or unnecessary complications. This guide outlines each stage, offering practical advice to help foreign companies hire confidently and compliantly in the Italian market.
Step 1. Define the Role and Select the Right Contract Type
Before advertising a vacancy, employers should take the time to clearly define the role and determine which type of employment contract is most suitable. This decision affects everything from tax and social security obligations to employee rights and termination terms.
A. Permanent Contract (Tempo Indeterminato) – Offers stability and is often preferred by candidates.
B. Fixed-Term Contract (Tempo Determinato) – Best suited for temporary needs or time-bound projects.
Clarity at this stage ensures the rest of the hiring process runs smoothly. In some cases, businesses may also consider freelance or project-based agreements (lavoro autonomo), although these come with their own regulatory challenges and should be used with care.
Step 2. Draft a Compliant Employment Contract
Once you’ve identified the candidate, it’s time to prepare the employment contract. Italian contracts are typically written and highly detailed, governed not only by national law but also by collective bargaining agreements (CBAs).
- Job title, duties, salary, working hours, and notice period must be specified
- References to applicable CBAs are often required
- Probation periods, holiday entitlements, and bonuses should be included clearly
Foreign employers should consult a local HR consultant or legal advisor to ensure that contracts are both compliant and aligned with industry standards.
Step 3. Complete Pre-Hire Notifications and Registrations
Before the employee begins work, several administrative steps must be taken. These are mandatory and time-sensitive.
A. Pre-employment notification to the local Centro per l’Impiego must be made at least one working day before the start date.
B. Registration with INPS and INAIL is required to activate social security and workplace insurance coverage.
Once those notifications are completed, it’s important to confirm that all documentation is accurate and filed correctly. Italian systems are mostly digital, but mistakes in employee details or contract terms can result in compliance issues. Working with a consultant or payroll provider can reduce the margin for error.
It’s also recommended to verify the employee’s Codice Fiscale (tax code) and ensure their identification documents are collected and securely stored.
Step 4. Prepare Payroll and Benefits Setup
After formal registration, employers must be ready to handle payroll and benefits correctly from the first payslip. This includes managing salary calculations, deductions, and contributions to social security.
Each month, you’ll be responsible for processing gross salary, calculating income tax, and deducting regional and municipal taxes where applicable. Employers must also make separate contributions to INPS and INAIL.
Although the Italian system is digital, payroll compliance is detailed and unforgiving. Many foreign companies choose to work with local payroll providers to ensure all systems are correctly set up. Payslips must be provided to employees in a timely and transparent manner, including all legally required details.
Step 5. Provide a Proper Onboarding Experience
While not strictly required by law, onboarding plays a significant role in setting expectations and reducing early turnover. Especially in Italy, where workplace culture is relational and structured, it’s important to begin with clarity.
A. Share an employee handbook, company policies, and role-specific expectations
B. Offer introductions to team members and key points of contact
C. Set up the tools, access, and workspace needed for success
An effective onboarding experience makes your business stand out and supports long-term engagement.
Hiring in Italy may involve more formal steps than you’re used to, but once you understand the process, it becomes a reliable framework. Working with local experts, planning each stage, and documenting thoroughly will help avoid the common pitfalls foreign employers face.
For a broader look at how to hire in Italy as a foreign company, including sourcing talent, legal compliance, and onboarding strategy, read our full guide on hiring in Italy or contact Peoitaly today for tailored support.
