The employee contract in Italy must be provided in writing (in Italian or bilingual) and should clearly outline the job title, responsibilities, compensation, working hours, start date, notice period, and any probationary periods. For fixed-term contracts, the duration must also be specified. Additionally, the contract should detail annual paid leave, sick leave entitlements, and mandatory tax and social security registrations.
Employer of Record (EOR) Italy
Expand your team in Italy without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
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Start Hiring in Italy
Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
We draft bilingual contracts that comply with Italian labor laws.
Hire in Italy with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Italy is handled efficiently and in full compliance with local regulations.
Hire in Italy with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Italy is handled efficiently and in full compliance with local regulations.
Hiring In Italy
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Pre-employment health checks are mandatory for positions involving high physical demand or safety risks. Health assessments must be conducted prior to the employee starting work.
Salaries should be outlined as gross annual compensation, divided into monthly payments. The contract should also specify any additional payments such as bonuses, benefits, and overtime.
Job duties and expectations
Salary and payment structure
Work hours and flexibility
Rights regarding vacation, sick leave, and holidays
Procedures for termination and notice period
Opting for an EOR in Italy eliminates the complexities of navigating intricate Italian labor laws, tax filings, and employee benefits. EOR services in Italy ensure compliance, simplify HR management, and enable businesses to expand without setting up a local entity, saving time and resources.
in Italy
1. What are the key steps in employee onboarding in Italy?
Key steps in employee onboarding in Italy include signing the employment contract, registering with the Italian Social Security Agency (INPS), obtaining a tax code (Codice Fiscale), and setting up a bank account for salary payments. Employers must also ensure compliance with local labor laws, workplace safety, and introduce company policies. For foreign employees, obtaining a work visa and residence permit is essential.
2. When are pre-employment health checks required in Italy?
Health checks are generally not mandatory, except in specific industries (e.g., healthcare, food services, or jobs requiring physical labor). They are necessary when the role involves specific risks or is subject to health and safety regulations.
3. What documents are essential for onboarding in Italy?
Essential documents for onboarding in Italy include the signed employment contract, the employee’s tax code (Codice Fiscale), proof of identity (passport or ID card), and a valid work permit or visa (for non-EU employees). Additionally, registration with the Italian Social Security Agency (INPS) and any required health insurance documentation are necessary.
4. Why businesses in Italy need EOR services?
In Italy, businesses need EOR services to simplify compliance with strict labor laws, avoid administrative challenges, and streamline HR processes. EOR services in Italy help manage payroll, contracts, and benefits while ensuring full adherence to Italian regulations.
5. How does EOR in Italy different from other countries?
Italy’s complex labor laws, regional variations, and emphasis on collective bargaining agreements make its EOR process unique. Unlike other countries, Italy requires employers to adhere to rigid employee protections, making EOR expertise crucial for compliance.
PayRoll In Italy
Employees in Italy are generally paid monthly, and salaries are often higher to compensate for higher costs of living. Payroll should also include potential bonuses such as 13th and 14th-month salaries, which are paid in December and June.
Remote employees must receive the same treatment as those working in-office regarding salary, benefits, and compliance with local tax laws. Payroll must be processed according to Italian regulations, including tax withholding.
The minimum wage in Italy is not set by law, but is typically determined by collective bargaining agreements specific to each sector. These agreements set the minimum pay standards for different job categories.
The 13th salary is paid in December, while the 14th salary is paid in June. These are not legally required but are common practices in many sectors, often included in employment contracts.
in Italy
1. What are the income tax rates in Italy?
Income tax in Italy is progressive, ranging from 23% to 43% depending on income levels. Additionally, employees pay regional and municipal taxes which can vary based on location.
2. How are non-residents taxed in Italy?
Non-residents are taxed at a flat rate of 30% on income derived from Italian sources. However, this can be reduced under tax treaties with other countries.
3. When should annual tax returns be submitted in Italy?
Annual tax returns must be submitted by November 30 of the following year. Employers typically withhold taxes from salaries monthly and submit them to the government.
4. What are the social security contribution requirements in Italy?
Both employers and employees contribute to social security. The employer’s contribution rate is around 30-35% of the gross salary, while the employee contributes around 9-10%. These contributions cover healthcare, pensions, and unemployment benefits.
Leave in Italy
Employees are entitled to at least 4 weeks (20 days) of paid annual leave per year. In practice, many employers offer additional days as part of collective agreements.
Employees can begin using their leave after completing a 6-month probationary period unless stipulated otherwise in the contract.
Maternity Leave: Female employees are entitled to 5 months of maternity leave, which can be taken before or after childbirth. They are paid 80% of their salary during this time.
Paternity Leave: Fathers are entitled to 10 days of paid paternity leave, usually within the first 5 months of the child’s birth.
Public holidays are generally paid days off. Employees are entitled to 11 public holidays annually, but this number may vary by region.
in Italy
1. What mandatory benefits must employers provide in Italy?
In Italy, employers must provide several mandatory benefits, including paid annual leave, sick leave with compensation, maternity and paternity leave, holiday pay, and INAIL coverage for work-related injuries and occupational diseases. Employers are also required to offer severance pay (Trattamento di Fine Rapporto, TFR), contribute to the pension system (INPS), and provide public holidays off. Additionally, workers are entitled to a minimum wage as stipulated by collective agreements, which vary by sector.
2. Is there a home office allowance for remote employees in Italy?
There is no national requirement for home office allowances, but some companies offer stipends to cover remote work expenses, like utilities or internet.
3. Are meal allowances commonly provided in Italy?
Meal allowances are common and are often provided as a non-taxable benefit. Employers may offer vouchers or reimbursements for meals.
4. What additional benefits are typical in Italy?
In Italy, additional benefits often include private health insurance, meal vouchers, transport subsidies, company cars, and flexible working arrangements. Some companies may also offer performance-based bonuses, professional development opportunities, or additional pension contributions. These benefits can vary depending on the industry, company size, and collective bargaining agreements.
Terminations in Italy
The standard notice period depends on the employee’s tenure and job level. For most employees, it ranges from 15 days to 3 months.
Yes, employees can be terminated without notice for serious causes (e.g., gross misconduct). However, they must be compensated for severance.
Severance pay is typically calculated based on seniority, the length of service, and salary. A common formula is:
1 month’s salary per year worked, plus any bonuses owed.
Mutual termination can occur when both the employee and employer agree on ending the contract. A severance package is often negotiated, but employees retain the right to certain benefits like unemployment insurance.
Comparison Table: Global EOR & PEO Providers – Italy
Feature | Globaine PEO | Deel | Papaya Global | Oyster | Velocity Global |
---|---|---|---|---|---|
Global Coverage | 120+ countries | 150+ countries | 140+ countries | 180+ countries | 150+ countries |
Pricing |
|
|
|
|
|
Compliance |
| Not Sure | Not Sure | Not Sure | Not Sure |
Onboarding | Instant same-day onboarding | 2 days, on average | 1-2 days | 1-2 days | 1-2 days |
Payroll Cycles | Regular + off-cycle pay | Regular Pay Cycle Only | Regular Pay Cycle Only | Regular Pay Cycle Only | Regular Pay Cycle Only |
Expenses Support | 24-hour reimbursement | With Regular Payroll Cycle | With Regular Payroll Cycle | With Regular Payroll Cycle | With Regular Payroll Cycle |
Benefits | Tailored to Italy’s regulations | Not Sure | Not Sure | Not Sure | Not Sure |
Customer Support | 24/7 support, including: • Italian legal experts • Benefits specialists | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum |
Faqs
An EOR in Italy acts as the legal employer on behalf of businesses, managing payroll, tax compliance, benefits, and employment contracts. It enables companies to hire employees in Italy without setting up a local entity while adhering to Italian labor laws.
By using Globaine’s EOR, companies save on the high costs of setting up and maintaining a local entity, including legal fees, office space, local HR personnel, and ongoing compliance management.
Globaine achieves rapid onboarding by utilizing a streamlined system for document preparation and verification, backed by local experts who ensure quick, compliant setup within 12 hours.
Yes, Globaine can manage complex employment scenarios by drafting bilingual contracts that comply with Italian labor laws and handling terminations in line with local legal requirements, including proper severance and notice periods.
GlobainePEO facilitates hiring in Italy by managing legal compliance, payroll, and employment contracts. Their EOR services ensure fast and compliant onboarding, helping businesses expand in Italy without establishing a local entity.
An Employer of Record in Italy oversees payroll, benefits, and compliance with Italian labor laws. By acting as the legal employer, the EOR enables companies to hire employees in Italy efficiently, without establishing a local entity.