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Risks of Using an Unlicensed Employer of Record in Italy

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Updated for 2025 — Decree-Law no. 19/2024 converted into Law no. 56/2024

Hiring in Italy can be complex, especially for international companies exploring EOR services in Italy, contract staffing, or professional employment outsourcing. While global EOR platforms promise quick setups, many of these models are illegal under Italian law — and the criminal responsibility now extends to the client company as well.

What You Need to Know About EOR and Staffing in Italy

In Italy, all forms of EOR, PEO services, employee leasing, or contract staffing in Italy fall under the legal category of “somministrazione di lavoro” (staff leasing).

According to Legislative Decree no. 276/2003, any company providing staffing in Italy must hold an official license issued by the Ministero del Lavoro e delle Politiche Sociali (Italian Ministry of Labour).

This authorization is granted only to companies registered in the Albo Informatico delle Agenzie per il Lavoro — a public register that ensures compliance with labor, social security, and tax obligations.

If a company provides EOR in Italy or Italy staffing services without this license, it is operating illegally — and so is any business that uses its services.

Law No. 56/2024: Reintroducing Criminal Penalties for Unlicensed Staffing

In 2024, Italy reinforced its stance on illegal staffing and contingent workforce in Italy practices through Decree-Law no. 19/2024, later converted into Law no. 56/2024.

This reform tightened enforcement and reintroduced criminal penalties for unauthorized labor leasing (“somministrazione abusiva di manodopera”).

Key updates:

  1. Criminal charges now apply to both the unlicensed provider and the client company.
  2. Labor inspectors have expanded powers to investigate illegal EOR in Italy arrangements.
  3. Companies using unlicensed EOR or temporary staff Italy services face joint liability for unpaid contributions and benefits.
  4. Workers hired through illegal intermediaries can be reclassified as direct employees, with full backdated rights.

Engaging an unauthorized EOR is no longer a grey area — it is a criminal offense.

Why Global EOR Platforms Often Violate Italian Law

Many global platforms advertise EOR services in Italy or PEO solutions, but most lack the required “somministrazione di lavoro” authorization.

They claim to “employ on your behalf” or manage “payroll only,” but under Italian law, any entity that hires workers and assigns them under another company’s control is performing labor leasing, which requires a license.

Without this authorization, they are breaking Italian law — and any company using their services can face criminal liability under Law 56/2024.

How to Check if an EOR or Staffing Provider Is Licensed in Italy

Before signing any agreement for Italy employee leasing or temporary staff Italy, always verify the provider’s license.
You can easily do this on the official Italian Ministry of Labour website:

Verification steps:

  1. Go to https://politicheattive.lavoro.gov.it/albi-informatici/
  2. Click “Consultazione Albo”
  3. Enter the provider’s company name under “Ragione sociale”
  4. Look for “Somministrazione di lavoro” in the “Sezione” column

If you do not see that section, the provider is not licensed and therefore cannot legally offer EOR or PEO services in Italy.

What Happens If You Use an Unlicensed Provider

Under Decree-Law 19/2024 / Law 56/2024, criminal penalties extend to the client company.

Your organization may face:

  • Criminal prosecution for illegal labor leasing
  • Heavy fines and repayment of wages, taxes, and benefits
  • Automatic reclassification of workers as your direct employees
  • Reputational and legal damage in Italy

The message is clear: using an unlicensed provider to employ in Italy is a direct violation of the law.

The Right Way to Employ in Italy

To hire in Italy legally and safely, partner only with a licensed staffing agency or authorized EOR provider listed in the Albo Informatico delle Agenzie per il Lavoro.

A compliant partner will:

  • Be authorized for “Somministrazione di lavoro”
  • Manage contracts, payroll, and social contributions correctly
  • Guarantee compliance with Italian labor law and collective agreements
  • Protect your business from legal and financial risks

When planning your employment in Italy, compliance comes first and convenience second.

Why Choose a Licensed Partner Like Peoitaly

At Peoitaly, we are fully licensed under Italian law to deliver staff leasing, EOR, and temporary management solutions.

We help international companies employ in Italy legally and confidently, offering complete transparency and compliance assurance.

Our key services include:

Partnering with Peoitaly means your company’s staffing in Italy is 100 % compliant — every contract, every worker, every time.

Conclusion

The Decree-Law no. 19/2024, converted into Law no. 56/2024, marks a decisive shift in Italy’s enforcement of labor regulations.

Using an unlicensed Employer of Record in Italy is a criminal offense — and both provider and client are liable

Before you engage any EOR or PEO services in Italy, visit the official register and verify that the provider is listed under “Somministrazione di lavoro.”

If not, they are operating illegally — and your company could face criminal prosecution.

Choose a trusted, licensed partner like Peoitaly to ensure full compliance and peace of mind for your employment in Italy.

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