Employment contracts Italy

What should an employment contract in Italy include?

An employment contract in Italy should include the following essential information:

• Names and contact details of the employer and employee.
• The position title and a description of the employee’s responsibilities.
• The employee’s wage, hourly rate, or other forms of payment.
• The days of the week and the precise hours that an employee must be at work
• The conditions under which either party may terminate the employment.
• Terms that protect the employer’s interests, such as non-disclosure and confidentiality agreements.

Before signing an employment contract, each party should make sure they have read, understood, and agreed to all of the terms and conditions.

What types of employment contracts exist in Italy?

The most typical types of employment contracts in Italy are:

1. Employee contract

The different types of employment contracts in Italy are as follows:

• Permanent employment contract: This is the most typical Italian employment contract. It has an indefinite length and gives workers peace of mind about their employment prospects for the foreseeable future. Benefits, such as notice periods, severance compensation, and eligibility for social security, are all provided for under the permanent contract.
• Fixed-term contracts: Fixed-term contracts are another option for businesses looking to recruit workers for a predetermined length of time. A fixed-term contract has an initial duration of at most 12 months, with a possible extension to a maximum of 24 months. Typically, the caps are established by national collective agreements (NCA). 

2. On-call contracts

An employee with an on-call contract indicates they are available to work during a specific time frame. These times allow for last-minute calls to the employee. This agreement must be put in writing. In rare circumstances, the contract may provide that the employee must report to work if the employer calls them in. If this occurs, the worker is entitled to an additional portion of the pay determined by the relevant National Collective Agreement.

3. Apprenticeship contracts

An apprenticeship is an unrestricted agreement with a strong vocational or occupational training component. An employer may engage apprentices within specific quantitative parameters, which typically rely on the number of employees employed. It enables individuals to develop skills while working by combining work experience with specialized instruction. There are strict regulations governing the minimum age, contract length, and amount of required training for an apprentice.

How to hire employees in Italy?

In Italy, workers have the right to receive both the legally mandated minimum wage and any additional compensation their employers may offer. In addition, it is also the responsibility of businesses to adhere to the current employment laws. 

Operating a business in Italy is illegal without first registering it with the appropriate authorities and obtaining a tax identification number. 

In a situation like this, it is advisable to enlist the aid of a company that can act as your Employer of Record anywhere in the world. The Employer of Record service provided by Native Teams allows you to place your trust in a third party to handle your human resources, payroll, and tax administration needs.