Employer of Record in Italy

As the cradle of art, fine cuisine and innovation, Italy offers fertile ground for international companies. However, in Italy, pure EOR is strictly forbidden, and it is necessary to resort to alternative solutions when it comes to payroll management. Faced with these constraints, Salveo Italy has positioned itself as a privileged partner, offering you not only solutions that comply with Italian labor standards, but also unrivalled local expertise.

When you call on our team of experts, you benefit from a personalized approach and proactive assistance, guaranteeing transparent and efficient management of your human resources in Italy.

What is salary management?

Salary management is a type of service set up between 3 players: the company providing the service, a client company and an individual you wish to hire. Salveo Italy acts as an intermediary between employee and employer, dealing with the legal and regulatory aspects of immigration, employment and payroll.

However, it is important to note that this company has no supervisory role over the employee’s position, as it is the original employer who continues to make all decisions concerning job content, development and remuneration.

The advantages and benefits of freelance administration in Italy

There are 5 main advantages of EOR in Italy:

Legal compliance: our professional payroll management ensures compliance with local laws on employment, labor contracts and benefits, reducing the risk of litigation and fines.
Local expertise: when you use our payroll services in Italy, you benefit from local expertise and knowledge of Italian culture, tax regulations and labor market practices.
Administrative simplicity: this process simplifies complex administrative tasks such as drawing up employment contracts, payroll processing, tax management and more, saving you time on your day-to-day tasks.
Flexibility for foreign employees: payroll management makes it easy to obtain work and residence permits, contributing to a smooth transition.
Cost optimization: payroll management helps reduce operating costs, as it eliminates the need to set up a local subsidiary and manage all related costs (legal, accounting, domiciliation, etc.).

Our added value

As abenchmark employer, we offer a complete range of services to help you manage your human resources in Italy. Our services include :

drafting employment contracts in compliance with Italian labor legislation
assistance in obtaining work and residence permits for foreign employees
processing salaries and issuing pay slips
social security and income tax management
management of paid leave and reimbursement of business expenses.

In addition to these core salary management services, we offer a range of optional services, including recruitment, office space in our business centers and international mobility management solutions, such as apartment search, school placement, car rental and more.

Our expertise is designed to help your company optimize its human resources costs, strengthen its HR compliance, free up time and resources to focus on its core business, while attracting and retaining the best talent.

If your company is considering setting up in Italy, or delegating the management of its human resources, don’t hesitate to contact us!

Focus on the main features of Italian labor law

Types of employment contracts

In accordance with European Directive no. 533/91, implemented in Italy, essential information on the terms and conditions of the contract must be set out in writing and given to the employee within 30 days of hiring. In Italy, employment contracts are generally for an indefinite period. In addition, these documents must be written in Italian and must mention the euro. There are 7 types of employment contracts in Italy:

The open-ended contract (contratto a tempo indeterminato)
Fixed-term contracts (contratto a termine)
Interim contracts (lavoro interinale)
The part-time employment contract (lavoro part-time)
Collaboration contract (collaborazione coordinata e continuativa à co-co-co)
Insertion contract (contratto d’inserimento)
The apprenticeship contract

Please note: the minimum age for working in Italy is 16.

Probation Period

For open-ended contracts, the trial period is set by collective bargaining agreements, but may not exceed 6 months for managerial positions and first-class employees, and 3 months for other professional categories.

Working Hours and Overtime

The maximum duration of an ordinary working week may not exceed 40 hours, 8 hours a day and 6 days a week. Beyond this threshold, the hours are considered as overtime, with a limit of 8 hours per week. Details of these conditions are set out in collective agreements, and overtime is paid at a minimum rate of 110% of the basic rate, generally set at 130%. If the employee works for 7 consecutive days, he or she is entitled to a rest day.

Paid Annual Leave

Employees in Italy are entitled to four weeks’ paid annual leave, i.e. 20 days calculated on the basis of a five-day working week. However, in some companies, this number of paid vacation days can be as high as 26. Employees are entitled to an extra day’s paid leave for each public holiday.

National public holidays

The following table shows the Italian public holidays and their dates:

Date	Party
January 1, 2024	New Year’s Day
January 6, 2024	Epiphany
March 31, 2024	Easter Sunday
April 1, 2024	Easter Monday
April 25, 2024	Liberation Day
May 1, 2024	Labour Day / May Day
June 2, 2024	Republic Day
August 15, 2024	Feast of the Assumption of the Virgin Mary
November 1, 2024	All Saints’ Day
December 8, 2024	Feast of the Immaculate Conception
December 25, 2024	Christmas Day

Minimum wage

In Italy, there is no legal minimum wage, but the average monthly salary is estimated at 2,582 euros (gross). These are calculated by sector and on the basis of national collective bargaining agreements. However, there are two rules surrounding salary:

The payment cycle is monthly, with a transfer on the ^27th day of the month.
A ^13th-month bonus is mandatory under Italian labor law, and is generally paid at the same time as the December salary. Note that some sectors also include a ^14th-month bonus, generally paid in June.

Termination of employment contract

In Italy, termination of the employment contract by the employer involves two procedures:

Ordinary dismissal (giustificato motivo): this process takes place for personal or economic reasons, and requires a notice period.
Dismissal for just cause (giusta causa): only occurs in the event of serious misconduct on the part of the employee, and does not require a notice period.

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