When making the decision to go live and work in Italy, it is important to know the regulations in place regarding the employment contract. Although Italian labor law is similar to that of other European countries, Italian law differs in some respects, even more since the recent changes to the Italian Labor Code. There are currently 7 different work contracts in Italy, each with its modalities and particularities which are fixed by national collective agreements (contratti collectivi nazionali di lavoro, CCNL). A work contract can be oral or written, but Lisbob obviously advises to do everything to have a written contract. What are the characteristics of employment contracts in Italian law? What are the different job contracts in Italy? Lisbob, the expatriate assistant in Italy, tells you all about Italian labor law in matters of contract.

Permanent contract (contratto a tempo indeterminato)

It is the equivalent of the permanent contract in other countries. In Italy, the permanent contract is a classic contract, with no end date. There is a trial period during which each of the two parties can terminate the contract without having to give notice.

Even if the duration of the trial period is fixed by collective agreements; Italian law provides for a maximum period of six months for the trial period of executives and first class employees. With regard to open-ended contracts for the other salary categories, Italy sets a limit of 3 months. Once the period has passed, hiring becomes final.

For the employee, the new Italian legislation brings something new. Indeed, the law now provides that the employee can be assigned to any task of the same classification level, provided that this new job falls into the same category. Concretely what changes is that from now on the worker can be assigned by his employer tasks not only equivalent to his professional field but also to others. It therefore becomes legal for employers to allocate their employees to less important tasks.

On the employer side, the new hiring bonus introduced in 2020 grants an exemption from employer contributions of 50% for a period of 3 years for open-ended contracts.

Fixed-term contract (contratto has ended)

As in other countries, Italy offers the possibility of establishing fixed-term contracts, CDD. The fixed-term contract can be part-time or full-time and has an end date. The duration of a fixed-term contract in Italy cannot be more than 3 years.

Once expired, the fixed-term contract can only be renewed once for a period which cannot exceed that of the initial contract. Also, the total duration of the contracts must not exceed three years. For example if the initial fixed-term contract has a duration of 3 years then it is not possible to renew it. It will have to be transformed into CDI.

The new Italian legislation simplifies the employer side. Indeed, it is no longer compulsory for the company to justify the use of a fixed-term contract of less than 12 months. Thanks to this novelty, the employer no longer has to explain why he needs an employee for a specific time only.

In Italy, companies cannot have more than 20% of their employees on fixed-term contracts. For example if a company has 5 employees it can only have one on a fixed-term contract.

Interim contract (lavoro interinale)

In Italy the temporary contract, also called temporary contract, is often an interesting opportunity for a first contact with the company since it allows the company to benefit temporarily from the work, without assuming all the costs linked to the establishment of a work relationship.

Unlike hiring directly with the company, the signing of an interim work contract is tripartite. Indeed, it links a temporary employment agency (or interim), with an employer and an employee. Unlike the fixed-term contract, the interim contract period can be extended up to four times and the total duration cannot exceed 24 months. Beyond that, the contract must be reclassified as a permanent contract.

In Italy, the employee must be informed of the extension of his interim contract five days before the end date. Contract extensions must be formalized in writing and with the consent of the worker.

Apprenticeship contract (contratto di apprendistato)

As in other European countries, Italy offers an apprenticeship contract. This type of contract does not apply is similar to the apprenticeship contract that exists in France. It mainly concerns Italians between 18 and 29 years old and can be done in all types of companies. However, there is no age limit to benefit from an apprenticeship contract.

The duration of the apprenticeship contract is set between 24 and 72 months and must include a minimum of 120 hours of annual training.

Beneficiaries of an apprenticeship contract in Italy are entitled to receive a salary. The amount of this gradually increases until it reaches that of a skilled worker.

Collaboration contract (collaborazione coordinata e continuativa)

This contract is specific to Italian labor law. The collaboration contract, also called “co-co-co” in Italian, is a form of contract which is more and more widespread in Italy because it allows employers to reduce the cost of labor.

This contract is not salaried work (dependenti) or self-employment (indipendenti) as a self-employed entrepreneur for example. The worker in “co-co-co” works in full autonomy and has no managerial organization.

Italian law therefore speaks of “coordinated” and “continuous” collaboration between the worker and the company, hence the name co-co-co. The worker decides independently when and how to execute the orders he receives from the company by which he is contracted.

Part-time work contract (lavoro part-time)

The part-time contract is not really a separate type of job contract. He objects to full-time work and must be formalized in writing. He draws up a work report with a reduced schedule, ie less than 40 hours per week (legal working time) and for periods predefined in advance.

This type of contract concerns the majority of students who work in addition to their studies. Note that in Italy the minimum legal age to work is 16 years. Part-time workers should not be discriminated against compared to full-time workers with regard to their remuneration and regulatory treatment.

The hourly wages and paid holidays are therefore the same as those of the full-time worker, in proportion to the time worked.

Integration contract (contratto d'amerimento, formerly contratto di formazione-lavoro)

In order to facilitate professional integration, Italy offers the integration work contract. The integration contract is a professional training contract for young people aged 16 to 32. It is a fixed-term contract whose duration is between 1 and 2 years. This type of contract cannot be renewed and must include training of 20 to 140 hours.

However, in recent years integration contracts have been used less and less in private companies because they give little advantage to them.

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