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How to Switch Your EOR Provider in Italy (2026 Guide)

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Licensed Employer of Record in ItalySezione II – Somministrazione di lavoro: D.D. n. 7 del 07/01/2026Sezione IV – Ricerca e selezione del personale: D.D. n. 601 del 18/12/2025Based in Italy, working for international clientsHands-on experience in Italian employment law

Last updated: October 2026 · Written by the Peoitaly team, Employer of Record and payroll specialists in Italy.

Key takeaways

  • Short answer: yes, you can switch your Employer of Record (EOR) in Italy without losing your employee. The contract with the old EOR ends and a new Italian contract starts with the new EOR, with the same role and salary.
  • The outgoing provider pays the final settlement: last salary, accrued 13th and 14th month pay, unused holidays and the TFR.
  • Seniority, probation and benefits do not carry over automatically: agree them in writing before the switch.
  • Switch at the end of a payroll month and allow about 3 to 6 weeks to avoid gaps in pay and social security.

Many foreign companies make their first hire in Italy through a global Employer of Record platform. It is a fast way to start, but after a few months some realise the service does not fit: payslips arrive late, questions go unanswered for days, and nobody really knows the Italian rules.

The good news: changing EOR provider in Italy is possible, and your employee can keep working for you. This guide explains what changes, what your employee is entitled to, how long it takes and how to plan the switch so that nobody misses a salary.

Signs it is time to change EOR provider

Switching takes some work, so it is worth doing only for real reasons. These are the ones we hear most often from companies that contact us:

  • Payroll errors: wrong net pay, missing 13th or 14th month salary, contributions calculated on the wrong collective agreement (CCNL).
  • Slow or generic support: tickets answered in days, by people who do not know Italian employment law.
  • Unclear costs: monthly invoices that do not match the original quote, or extra fees for every change.
  • No local contact: many global EOR platforms operate through local partners in Italy, so you never speak with the company that actually employs your staff.
  • Unhappy employees: when your employee starts complaining about payslips or benefits, the problem is already costing you.
Your employee does not have to leave: what changes is the company that employs them in Italy, not the person who works for you.

What happens to your employee when you switch EOR

In Italy an Employer of Record works as a licensed employment agency through staff leasing (somministrazione di lavoro), which is why EOR is legal in Italy only with an authorised agency. Your employee has an employment contract with the provider, not with you. Switching EOR therefore means that the contract with the old provider ends and a new contract starts with the new one.

Ends

Old contract

The outgoing provider closes the employment and pays the final settlement: last salary, accrued 13th and 14th month pay, unused holidays and leave, and the TFR.

To agree

Seniority and probation

They do not carry over automatically. The new contract can recognise previous seniority and exclude a new probation period, if agreed in writing.

Starts

New contract

The new provider hires the employee with the same role, salary and hours, files the hiring communication and runs payroll from the first month.

For your employee the switch should feel like a change of payslip header, not a change of job. What you must check carefully is everything around it: the TFR severance pay, probation, notice periods and benefits.

Global EOR platform vs local Italian EOR

Before choosing your next provider, compare how the service actually works in Italy:

What to checkTypical global platformLocal Italian EOR
Who employs your staffOften a local partner you never speak withThe provider itself, with an Italian licence
SupportTicket system, global teamNamed contact who knows Italian law
CCNL and payrollStandardised across countriesApplied to your sector and role
CostsFlat fee plus country extrasItemised monthly estimate before you decide

To compare offers correctly, check the full employer costs in Italy and the hidden employment costs most foreign companies miss. You can also estimate the total cost of a salary with our Italy salary calculator.

How to switch EOR provider in Italy: 7 steps

  • 1. Check your current contract. Read the notice period and exit terms in your agreement with the current provider. Many contracts require 30 to 90 days’ notice.
  • 2. Get a full quote from the new provider. Ask for a monthly cost estimate per employee, including employer contributions, TFR accrual and the service fee.
  • 3. Talk to your employee. Explain why you are switching and what stays the same. They will sign the new contract, so their cooperation makes everything faster.
  • 4. Agree the switch date. End the old contract on the last day of a payroll month and start the new one on the first day of the next month, so there is no gap in payroll or social security.
  • 5. Collect the documents. Ask the outgoing provider for payslips, employment history, holiday balances and the TFR statement.
  • 6. Close the old employment. The outgoing provider ends the contract according to the law and the collective agreement, and pays the final settlement with the last payslip. Read more on how employment ends correctly in Italy.
  • 7. Start the new contract. The new provider issues the Italian employment contract, files the mandatory hiring communication, sets up payroll and confirms benefits and health coverage.

Not happy with your current EOR in Italy? Tell us your situation and we will explain how the switch would work for your team.

Talk to Peoitaly

Common mistakes to avoid when changing EOR

  • Switching in the middle of the month: it complicates payroll and can create a gap in pay or contributions.
  • Forgetting the TFR: the severance accrued with the old provider must be paid out or correctly handled. Check it on the final payslip and read the 2026 TFR rules.
  • Losing benefits: meal vouchers, health insurance, company car or welfare plans do not move automatically. List them and agree them with the new provider.
  • Restarting probation by default: if you want your employee to feel secure, agree in writing that no new probation period applies.
  • Telling the employee last: uncertainty about their contract is the fastest way to lose a good person.

Checklist for employers

  • Notice period with the current provider checked.
  • Full monthly cost estimate from the new provider received.
  • Employee informed and on board.
  • Switch date set at the end of a payroll month.
  • Payslips, holiday balances and TFR statement collected.
  • Seniority, probation and benefits agreed in writing.
  • New contract signed and hiring communication filed.
  • First payslip with the new provider checked together with the employee.

Once the switch is done, see what happens month by month after you hire in Italy, or find out why companies choose Peoitaly.

Frequently asked questions

Can I change my Employer of Record in Italy without losing my employee?

Yes. Your employee keeps working for you in the same role and with the same salary. Only the company that legally employs them in Italy changes: the contract with the old EOR ends and a new contract starts with the new EOR.

How long does it take to switch EOR provider in Italy?

Usually 3 to 6 weeks. It depends on the notice period in your contract with the current provider and on the payroll calendar. The cleanest option is to switch at the end of a payroll month.

What happens to the employee’s TFR when you change EOR?

The TFR (severance pay) accrued with the outgoing provider is part of the final settlement and must appear on the last payslip, unless it is paid into a pension fund. With the new provider the employee starts accruing TFR again.

Will my employee have a new probation period with the new EOR?

Not necessarily. The new contract can exclude or shorten the probation period if this is agreed in writing, which is common when the employee keeps the same role.

Does my employee keep their seniority when switching EOR?

Seniority does not transfer automatically between two employers. The new contract can recognise previous seniority on a voluntary basis, which matters for notice periods, pay increases and some benefits.

How much does it cost to switch EOR provider in Italy?

The main costs are the notice period with your current provider and the final settlement of the old contract (holidays, 13th and 14th month pay accrued, TFR). Ask the new provider for a full monthly cost estimate per employee before you decide.

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