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Employee protection in Italy

Italy places a lot of importance into the welfare of its people, which influences the laws and regulations that govern its workplaces.

From whistleblowing protections and anti-discrimination laws to equal treatment regulations and pay equity measures, the country ensures that all its workers are entitled to a fair and conducive workplace.

In this guide, we’ll cover several employee protection laws to help you understand your responsibilities as an employer, as well as the rights of your employees to help build compliant and better workspaces overall.

Whistleblowing protections in Italy

Similar to neighbouring EU countries, Italy recognises the key role of whistleblowers in safeguarding public interests and organisational integrity against illegal activities. The rights and protections that are afforded these individuals also ensure the accountability of employers and other potentially responsible parties.

Whistleblower protection law in Italy

In November 2017, Italy issued Law N. 179, which protects private and public sector employees from discrimination or retaliation when they report unlawful practices to authorities. The Italy whistleblower protection law also empowers concerned employees to report instances or acts that can be considered retaliatory towards them or other whistleblowers.

With the issuance of Legislative Decree No. 24/2023, the whistleblower protection law now also covers employers with at least 50 employees. Similarly, the adoption of Legislative Decree No. 231/2001 means that even organisations with fewer than 50 employees, operating in specific industries, are required to comply with the whistleblowing law.

Aside from the whistleblowers themselves, the people who support, assist, or enable them to report wrongdoing are also protected under the same law.

Whistleblower protection requirements in Italy

To comply with the whistleblower protection law, employers are required to create more than one channel where employees can report unlawful activities. At least one of these channels should be digitally accessible.

Employers are required to ensure the confidentiality of the whistleblower’s identity as well. Conversely, according to the law, reports made anonymously will not be entertained.

Activating whistleblowing protection in Italy

The most common triggers for activation of the whistleblowing protection law in Italy include reports concerning money laundering, public health endangerment, unlawful practices within financial services, and similar breaches of the law. This is applicable to companies that have an average of 50 or more employees in the past year.

Legislative Decree No. 231/2001or Model 231 renders the companies with representatives who break the law subsequently liable for those crimes. Employees within these organisations may report these breaches and they will be entitled to whistleblower protection.

Measures against whistleblowing retaliation in Italy

Those who retaliate against whistleblowers in Italy are also set to face legal disciplinary actions according to the law.

The dismissal or change of work location of an employee after they have reported potential wrongdoing is now presumed to be retaliatory.

In such cases, employers must prove in Court that these measures were taken independently of the instance of whistleblowing. Failure to do so will void these measures and can result in additional sanctions.

Administrative sanctions under whistleblowing protection in Italy

Administrative sanctions may also be levied in accordance with the whistleblower protection law in Italy. Parties that hamper the report, breach its confidentiality to employers, or retaliate towards whistleblowers may be sanctioned.

Similarly, employers that fail to comply with the implementation of internal reporting channels or any related procedures can also receive these penalties.

The most common administrative sanction in Italy involves the payment of fines.

Data privacy in Italy

Data protection is a top priority in European Union nations – Italy is no exception. The country’s Data Protection Authority is tasked with enforcing data protection laws, ensuring the compliant gathering, managing, and processing of data in both the public and private sectors.

The Authority’s powers also extend to the protection of individual rights, particularly the processing of personal data, including in their respective workplaces.

Italy’s data privacy law

Privacy and data protection in Italy is guided by the country’s General Data Protection Regulation (GDPR). Issued in August 2018, Legislative Decree No. 101 operationalises the GDPR and provides the requirements for controlling, processing, managing, and protecting data.

The Italy data privacy law also lays down the rights of data subjects as well as the relevant administrative penalties and criminal offences.

Data protection in the workplace in Italy

Although employers may block access to certain websites or social network sites during work hours, they cannot control their employees’ personal devices and monitor their electronic communications.

With the introduction of Legislative Decree no. 104 or the Transparency Decree in 2022, employers in Italy are now required to detail what exactly the employment relationship entails to their employees. This includes information on decision-making processes, potential time and activity tracking systems, assessment parameters of their obligations, and more. This highlights the responsibility of an employer to disclose the methods with which they may be monitoring their employees.

In cases where violation of the country’s data privacy laws havehas occurred, responsible parties may receive administrative or even criminal penalties. Breaching the rules regarding the remote monitoring of employees, for example, may be considered a criminal offence.

Equal treatment for temporary agency workers in Italy

At any given time, a substantial portion of the employed population in Italy is made up of temporary workers. These workers are usually under fixed-term contracts put in place to help bolster an organisation’s workforce.

This includes individuals hired to replace absentee employees, to complete a specific task, or to help with seasonal demand until a given date. Another example is employees who may have been hired through a third-party agency.

Protections for temporary and agency workers in Italy

Under the European Union Directive 2008/104/EC, temporary workers are also protected against unlawful practices. Particularly, the directive outlines equal treatment to temporary workers in terms of their basic working and employment conditions.

They are entitled to raise grievances should their employee rights be violated. These protections also extend to temporary employees in both the public and private sectors.

In the case of temporary-work agencies, the law also views them as employers, and therefore liable in case breaches of the law occur.

Working conditions of temporary and agency workers in Italy

Temporary agency workers must receive equal treatment in their pay and work hours, including overtime, breaks, rest periods, night work, holidays, and public holidays.

Employers must also extend these workers equal treatment regarding:

  • Treatment of men and women.
  • Protections against discrimination based on sex, sexual orientation, race, religion, disabilities, or age.
  • Protections for pregnant women and nursing mothers
  • Protections of children and young people.

Training, amenities, and access to employment in Italy

Also, in accordance with EU directives, temporary work contracts in Italy require employers to inform temporary and agency workers when permanent positions similar or related to the work they are already performing become available.

In addition, employers are required to encourage these workers to participate in training programmes to help develop their skillset and boost their employability.

Finally, employers are expected to provide access to the same conditions given to permanent or regular workers, such as canteens, transportation, childcare facilities, and other amenities and collective services.

Anti-discrimination act in Italy

Like in advanced economies, Italy has laws in place that strictly prohibit any kind of discrimination. This is clearly outlined in Section 3 of the Italian Constitution.

Anti-discrimination laws in Italy

In the workplace, employees are protected by the Worker’s Statute (Law no. 300 of 20 May 1970). This law protects against discriminatory practices during employment that may be based on age, sexual orientation, gender, religion, disability, nationality, language, union participation, and political preferences.

Several other laws such as Legislative Decrees no. 215 of 9 July 2003, no. 216 of 9 July 2003, and no. 198 of 11 April 2006 that align with the European Directives on Equal Treatment in Employment and Occupation also reiterate these protections.

Moreover, these laws prohibit employers from applying any discriminatory selection criteria when considering candidate applications, accepting and evaluating apprentices, promoting existing employees, or terminating workers.

Protections against harassment in Italy

Italian law also does not tolerate harassment at any form, particularly if they are done on the grounds of protected characteristics of a person, such as those mentioned above.

If instances of harassment take place in the workplace, employers may be held liable. This is especially incriminating if employers have been found to have been aware of the acts of harassment but have failed to stop them from happening. This also applies to instances of sexual harassment.

Employers are permitted to establish their own policies, procedures, and systems to prevent harassment and to deal with cases if they occur. These details are typically outlined in organisations’ code of conduct, in the employee handbook. These internal policies are expected to apply to employers and employees alike.

Pay equity laws in Italy

Pay equity laws for gender equality in Italy

The Workers’ Statute explicitly prohibits employment, promotion, and termination based on the employee’s gender. Job definitions, roles, and responsibilities should also be equally applicable across genders.

In 2021, the new equal pay law or Law 162/2021 was passed to combat the pay gap between women and men. The law notably amends parts of Legislative Decree 198/2006 or the Italian Equal Opportunity Code, which does not allow for discrimination in remuneration within the same position or when having similar responsibilities.

It is also worth noting that these laws align with the National Strategy for Gender Equality for 2021-2026 contained within the Italian National Recovery and Resilience Plan in terms of transparency and rewards.

Reporting obligations for pay equity in Italy

To further tackle gender gaps in the workplace, employers that have more than 50 employees are required to publish a report every two years that contain the following:

  • Female and male employment remuneration, including benefits
  • Total number of female and male workers hired during the year, their positions, and their contract types
  • Detailed selection and recruitment processes
  • Detailed criteria in place for career advancement and professional development
  • Policies in place to promote employee wellbeing and work-life balance
  • Policies in place to promote diversity and inclusion

Employers need to submit the report electronically, using the Ministry of Labour and Social Policies’ online portal. Those that fail to do so may be made to pay fines between 1,000 EUR to 5,000 EUR.

Companies that have been consistent in their submissions of the report and have been meeting the prescribed gender equality measures can apply for a Gender Equality Certificate, which will improve their reputation in the labour market.

Safeguard your business with our compliance expertise

Understanding what your obligations as an employer is one of the biggest challenges of hiring in Italy. Get it wrong, and you could face legal action and damage to your reputation.

Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.

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