Employer/Employee relations

National Collective Agreements are negotiated on a national level from time to time by unions and the association of employers and contain provisions related to several aspects of the employment.

Employment regulation

The minimum wage is determined by the applicable National Collective Agreement.

The normal working hours (not applicable to executive-level employees) shall not exceed 40 hours a week. National Collective Agreements can impose further restrictions. Work performed in excess of 40 hours a week is overtime. Overtime pay is due for overtime work: relevant rates are set forth by Collective Agreements.

The duration of annual holidays is determined by law; however, National Collective Agreements may provide for a more favourable treatment. Employees are entitled to a minimum of four weeks of paid vacations.

In case of sickness, employees have the right to retain their position, with their whole salary or part of their salary, in accordance with applicable National Collective Agreement. The relevant costs are mainly covered by the social security system. The average period is between six and 12 months.

Hiring and firing requirements

(a) Hiring

An employer may directly recruit employees provided that, upon hiring, the employer provides the communications due to the competent labour office, and to the welfare authorities, which will proceed to establish the insurance profile of the employee.

Companies employing more than 15 workers have a mandatory obligation to hire disabled workers and other protected categories.

(b) Dismissal

The employer's ability to dismiss an employee is allowed only for (i) just cause (material misconduct of the employee, with no notice period by the employer) or (ii) justified reasons (contractual breaches by the employee that do not constitute just cause for dismissal, or for external and objective circumstances preventing the continuation of the employment relationship, with notice period in accordance with applicable National Collective Agreement), upon submission of a written dismissal notice to the employee.

The dismissal of executive employees should be also grounded on a justified reason. Moreover, relevant National Collective Agreements grant executives additional protection.

In case of unjustified dismissal, remedies are different according to the size of the firm: if an employer employs more than 15 workers (or five in the agricultural sector) in any establishment, branch, office or autonomous department, and if employers employ more than 60 workers, wherever located, the employee unfairly dismissed could be entitled to reinstatement in the same job position or – by his/her own choice – to the payment of an indemnity instead of notice period equal to 15 months of salary. Furthermore, in addition to the above, employee will be entitled to the payment of the outstanding salary from the dismissal to the reinstatement (or payment in lieu of reinstatement), which cannot be lower than five months of salary.

Where there are fewer than 15 employees in a unit or fewer than 60 employees in total, the employee unfairly dismissed has no right to reinstatement, but is entitled to compensation for damages of between a minimum of two-and-a-half months of salary and a maximum of six months of salary (reinstatement in the same job position is not applicable). Alternatively, the employer may decide to re-employ the dismissed employees, if possible, instead of paying compensation for damages.

Certain employees, such as pregnant women or disabled employees, are granted additional protections against dismissal. In addition, dismissal on the grounds of pregnancy or marriage is expressly prohibited.

In case of sickness, the employment relationship may not be terminated unless a certain period of time provided for in the relevant National Collective Agreement has elapsed.

In addition to the above, upon fulfilment of certain requirements, Italian law provides for a procedure known as collective dismissal, by means of special procedures of information and bargaining with unions before terminating contracts, and special indemnities for the employees that are to be made redundant, according to EU directives.

(c) Resignation

The contract of employment may also be terminated by the resignation of the employee, provided a notice period is respected. However, the employee may resign with immediate effect in case of just cause attributable to the employer.

Labour permits

Non-EU nationals must obtain a work visa before coming to Italy. In general, a work visa may be applied for only if the individual is able to enter the yearly quotas for immigrant visas established every year by the Italian Government.

Italian immigration law also provides for a special work visa (not restricted by any quota), which can be granted to certain categories of employees.

Unions

The Italian Constitution recognises the right of citizens to associate freely and the right of employees to establish union committees, to join trade unions and to perform union activities within the company.