Recent developments in Italy
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment space in Italy (2026).
Fixed-term contracts: post-extension compliance (2026)
The temporary flexibility that allowed private employers to justify fixed-term contracts beyond 12 months (up to 24 months) under broader technical/organizational/production reasons was limited to 2025. In 2026, employers generally need to apply the ordinary fixed-term rules again, including statutory justification requirements and any additional conditions set by the applicable collective bargaining agreement (CBA).
Remote work (“smart working”) notifications remain required (2026)
Employers must continue to formalize remote work arrangements in writing and submit the required electronic notification to the Ministry of Labour within the prescribed deadline whenever a smart working agreement starts, changes, or ends.
Parental leave entitlements and enhanced paid components (2026)
Italy’s parental leave framework remains in force in 2026, including the ability for parents to take extended periods of parental leave and access higher indemnity rates for certain portions of leave taken within the child’s early years, subject to statutory eligibility conditions.
Hiring incentives for youth and women continue (2026)
Multi-year incentive schemes remain available in 2026 for eligible employers hiring under-35 workers and eligible women under open-ended contracts. These typically operate through social security contribution exemptions, subject to caps, duration limits, and strict eligibility criteria.
Social contribution relief for working mothers (2026)
Contribution relief measures for working mothers with dependent children remain a key payroll compliance item in 2026. Employers must assess eligibility carefully and apply the correct contribution treatment through payroll, aligned with current administrative guidance.
