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Hiring in Italy

Background checks in Italy

Hiring employees and other types of workers in Italy

Language requirements in Italy

Corporate presence requirements and payroll setup in Italy

Hire talent in Italy with our EoR solution

Employer of Record in Italy

Several factors come into play when hiring in another country. Italy is no different. Many of these often-time-consuming considerations are addressed from the get-go with the help of an employer of record (EoR).

From HR and administrative tasks like onboarding, payroll, and even employee management, to regulatory and tax-related concerns, an EoR takes care of the challenges you will encounter when expanding in Italy.

Access to HR and compliance experts in the region alone provides significant boosts to both efficiency and confidence, saving you time from spending considerable resources. With an EoR to guide your organisation, you can seamlessly scale your local workforce without worrying about potential delays and regulatory issues.

The question is not whether to seek EoR services, but which provider to choose. CXC, as a reliable provider, has over 30 years of experience operating within the EU and Italy in particular.

This guide will highlight the most important information you will need to navigate the employment landscape of Italy, including hiring practices, employee background checks, payroll set up and more.

Hiring in Italy

Understanding the ins and outs of Italy’s hiring systems and processes is the first step to capitalising on the country’s myriad talent offerings. Here are a few of the key points to remember about Italy’s employment laws and regulations:

Employment contracts and terms in Italy

According to national bargaining agreements and Legislative Decree No. 104/2022, employers are required to present detailed employment contracts to prospective employees. These written agreements need to clearly outline key pieces of information such as compensation, employee level, work schedule, benefits, paid time off, probationary and notice periods, holidays, and termination conditions. Salary should be stated in Euros as well.

Additionally, before the employee begins their employment, companies are expected to report the terms of the contract to the Ministry of Work through a mandatory online form called “UniLav..” This informs the National Social Security Institute, the National Institute for Insurance against Accidents at Work, and the Labor Inspectorate of the newly established work relationship. Failure to abide by this regulation can result in fines.

Anti-discrimination and anti-harassment laws in Italy

Italy expressly prohibits any kind of discrimination as outlined in Section 3 of the Italian Constitution. In the workplace, employees are protected by the Worker’s Statute (Lawno. 300 of 20 May 1970), which forbids employment discrimination based on characteristics such as rage, religion, gender, language, disability, sexual orientation, nationality, union participation, and political preferences.

These sentiments are further enforced by several other laws, namely Legislative Decrees no. 215 of 9 July 2003, no. 216 of 9 July 2003, and no. 198 of 11 April 2006 that follow the European Directives on Equal Treatment in Employment and Occupation. These directives deem it unlawful to apply any discriminatory selection criteria for employment. Apart from hiring in Italy, this also applies to promotions, terminations, and acceptance into apprenticeship programmes.

Harassment on grounds of race, religion, disability, and several other protected characteristics of a person is also not tolerated in the country. If harassment takes place in the workplace, and the employer is aware of it, they may be held liable, especially if no measures have been taken to stop the act or behaviour. Sexual harassment is similarly prohibited.

In line with this, companies can establish their own systems, procedures, and policies to prevent harassment in the workplace. These are usually stated in the employee handbook and codes of conduct. Employers and employees both are expected to abide by these internal regulations.

Minimum wage in Italy

While there is no statutory minimum wage in Italy, individual sectors commonly have a set minimum hourly rate and standard contract negotiated by trade unions at a national level, outlined in the corresponding national collective agreements or NCAs.

Background checks in Italy

A pre-employment background check is a standard practice in Italy. However, there are limitations to what companies can investigate regarding their candidates. Understanding these limitations will ensure further compliance.

Employers are generally required to notify or, in some cases, ask prospective employees for their consent when it comes to collecting and processing personal information. It is also important to note that all information gathered should be directly relevant to the role in question.

Handling of all data throughout the pre-employment process should be in accordance with the EU’s General Data Protection Regulation (GDPR), as well as the Italian Data Protection Code.

Anti-discrimination in pre-employment background checks in Italy

The Workers’ Statute does not allow employers to make inquiries into their prospective employees’ political, religious, or union opinions and participation. Circumstances outside a person’s professional aptitude, such as age, sexual orientation, nationality, and race, are also prohibited from being investigated. This protection extends to inquiries made by companies through a third party.

Employee health checks in Italy

Employers also cannot inquire directly into an employee’s physical ability to perform their job. Instead, an occupational doctor is required to directly investigate these matters.

Prospective employees will be required to undergo a medical examination conducted by occupational doctors. Workers who do not undergo this check may not be hired by employers. Companies can also opt to test for drug and alcohol use if the potential responsibilities of candidates expose third parties to security, safety, and health risks.

Tests that check whether a potential worker is pregnant are strictly prohibited as well.

Employee credit checks in Italy

Employers are prohibited by law from going through a candidate’s financial records, credit reports, and any other similar documents for recruitment purposes. According to Legislative Decree no. 196 of June 2003, conducting these types of checks will violate the prospective employees’ right to privacy.

Criminal background check in Italy

It is generally prohibited for an employer to perform a criminal background check in Italy when assessing candidates. Instead, employees can be asked to provide proof of their good legal standing. A “Certificato Del Casellario Giudiziale” from the Ministry of Justice is one of these documents.

There are a few exceptions wherein employers can access a candidate’s criminal records. Usually, it would have to be permitted by relevant collective bargaining agreements. In some specific use cases, the law also grants this permission. An example would be when the prospective employee will have to work with minors in the course of performing their duties.

Hiring employees and other types of workers in Italy

Employees fit into various classifications in Italy, depending on equally varying factors. This includes employment conditions, contractual arrangements, and job responsibilities. Each classification also has corresponding entitlements and obligations. The following are the most common classifications in the country:

Permanent employees in Italy (Lavoratori a tempo indeterminato)

These employees have open-ended contracts with their employers. Since their employment does not have a set duration, workers who fall under this category generally experience a high level of job security. These employees also enjoy several labor protections, including notice periods and, in case of termination, severance packages.

Fixed-term employees in Italy (Lavoratori a tempo determinato)

Compared to permanent employees, the employment contracts of fixed-term workers outline a specific employment duration. People who fall under this category usually have a temporary or project-based arrangement with their employers. They are also entitled to worker rights such as leave credits and the potential for contract renewal, the conditions of which are usually also highlighted in their initial agreement.

Part-time employees in Italy (Lavoratori a tempo parziale)

The standard full-time working hours in Italy are 40 hours every week, or eight hours per day. Part-time employees work fewer hours than that. Their benefits and entitlements are also prorated based on the hours they work. This classification allows both employers and employees more flexibility. For workers, this can mean having time to focus on other priorities.

Seasonal employees in Italy (Lavoratori stagionali)

Employees who are hired to work during a specific season or period fall under this classification. This type of worker is common in tourism and agriculture. The contracts for seasonal employees usually expire when the relevant peak season ends. Based on the nature of the work, employees under this category may be entitled to certain benefits. Some seasonal workers also experience recurring employment with the same employers.

Apprentices in Italy (Apprendisti)

Individuals who fall under this category work while they undergo specific vocational training programs. They are usually younger workers who have only started entering the job market. Aside from the experience and skills they gain in their programs, apprentices are also usually subject to rules and regulations based on the industry they are in. Their contracts also usually have set durations and requirements to be met.

Independent contractors in Italy (Indipendenti)

Businesses generally hire independent contractors in Italy to address a specific need. These workers usually belong in industries such as IT, creative, and trades and services. Being independent contractors, they typically set their own schedules, work using their own tools and software, and even engage with other clients. Consequently, contractors are also rarely entitled to employee benefits.

Job positions in Italy

Employees in Italy can also be classified based on job positions. These four are the usual categories:

Manual work or blue collar worker (Operaio): These operational positions generally require fewer formal qualifications compared to other types.
Office worker (Impiegato): These are usually office worker positions that do not hold leadership roles and require intermediate formal qualifications.
Manager (Quadro): Specialist roles and managerial positions usually fall under this category. They require considerable qualifications in most cases, such as specialised skill sets or leadership experience.
Executive (Dirigenti): Executives and senior leadership roles are classified as dirigenti. They are usually exempt from labor regulations that cover other types of employees.

Language requirements in Italy

While there is no statutory language requirement in workplaces, all documents should be in the official language of Italy – Italian. The country is also known for having fewer than average English speakers compared to its neighbors. For this reason, it is important to have someone who understands and communicates in the Italian language when working within the country.

Aside from Italian, German is another common language in Italy. In some northern provinces of the country, many people communicate using the language.

That said, one of the several advantages of working with an EoR is having that local presence in the region – a partner who has experience, not just with the nuances of the local language, but with both customs and regulations as well.

Corporate presence requirements and payroll setup in Italy

Italy has consistently been one of the most complex countries when it comes to payroll, according to the Global Payroll Complexity Index or GCPI. In the most recent report, the Global Payroll Association ranked the country in the top five in terms of complexity of both setting up and running payroll.

One of the major reasons for the complexity is the multitude of collective bargaining agreements spanning most industries in the country. This also impacts the diversity of social security contributions required for each employee. Income taxation can also be complicated, considering that it may be levied in three varying levels – municipal, regional, and national.

Running payroll in Italy

To properly set up payroll in Italy, companies need to register with the Tax Agency (Agenzia delle entrate), the National Social Security Institute (Instituto Nazaionale Previdenza Sociale), the National Institute for Insurance Against Accidents at Work (Instituto Nazionale per l'Assicurazione contro gli Infortuni sul Lavoro), and the Labour Office (Centro per I’Impiego).

This means companies will need to register a legal entity within Italy first before being able to engage with both local employees and the employment authorities —A process that can be both resource-intensive and time-consuming. This is also one of the many reasons businesses would rather seek the help of a trusted EoR, such as CXC, to bypass these challenges.

An EoR enables you to focus on your core business while tasks involving payroll, tax, and other compliance-related activities are duly covered.

Hire talent in Italy with our EoR solution

Hiring talent in Italy usually means setting up a legal entity, which can be costly and time-consuming. As an employer, you can avoid this hassle by working with an Employer of Record (EoR), like CXC.

Through our EoR solution, you can confidently hire employees in Italy without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.

Speak to our team of experts and find out how much time and resources you can save, and how easy and quick it can be to start building your team in Italy compliantly.

Read about EoR services

FAQ's

What are the options for hiring employees in Italy?

Companies can hire employees in Italy through their own entity, by registering the foreign business as the employer, or through an authorised employer of record (EOR). The first two routes keep employment with the company. With an EOR, the provider employs the person and runs local payroll.

A business that hires directly signs the contract and manages pay, contributions and employment records. A foreign company can do this without opening a subsidiary, but it must complete the necessary Italian employer, social-security and workplace-accident insurance registrations. This will generally include registration with the Istituto Nazionale della Previdenza Sociale (INPS) and, where applicable, the Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro (INAIL). Tax-withholding requirements must also be assessed separately.

An EOR handles the contract, salary and contributions while the client manages daily work. Under Italian law, this structure will generally operate as somministrazione di Lavoro, the supply of agency workers, rather than as a separately regulated “EOR” model. The provider needs Ministry of Labour authorisation to assign staff to clients. Pay, hours and benefits follow the relevant Contratto Collettivo Nazionale di Lavoro or CCNL (national collective labour agreement).

The employee must receive pay and working conditions at least as good as those of staff doing similar work at the client company. The client is generally jointly liable with the authorised agency for unpaid wages or social-security contributions, relating to the assignment, subject to the applicable statutory rules.

Do you need a local entity to hire employees in Italy?

No, a foreign company can hire employees in Italy without opening a local entity. It can register as the employer itself or use an authorised EOR, which signs the employment contract and employs the person.

For direct employment, the foreign company generally needs an Italian tax code and the registrations required by INPS, INAIL and the employment authorities. Depending on the company’s location and circumstances, it may also need to appoint an authorised local intermediary or social-security representative and establish an appropriate Italian payroll process. It remains responsible for the employee’s contract, pay and working conditions.

With an EOR, the provider runs payroll and pays the required contributions. The client chooses the employee and directs the work. It must also give agency staff the same workplace safety, prevention and protection measures that apply to its own employees. The provider must be an authorised employment agency, and the arrangement must comply with the rules governing somministrazione di lavoro. A company may still open an entity for wider commercial reasons, but employment alone does not require one.

How long does it take to hire employees in Italy?

Hiring an employee in Italy can take a few weeks when the company already has the registrations needed to employ staff locally. Companies hiring directly in Italy for the first time may need longer to complete the required employer registrations before the employee can start.

The timeline also needs to account for preparing the employment contract, identifying the correct CCNL and employee classification, setting up payroll and completing the required pre-employment notification. The mandatory hiring communication generally needs to be filed no later than the day before employment starts. If the employee needs Italian work authorisation, this adds a separate immigration process.

For companies without an established employment setup in Italy, an EOR in Italy can shorten the hiring process because the provider already has the local infrastructure needed to employ staff. EOR onboarding can typically take around 3–14 days once the candidate has been selected and the required information is available.

Any notice period the employee needs to serve with their current employer can extend the actual start date.

When should companies use EOR services in Italy?

Companies can use EOR services in Italy when entering the market without a local entity, hiring a small number of employees, testing a new market, accessing specialist talent, building a team before establishing an entity, or managing employees as part of a wider international workforce.

An EOR can also be useful when a company has an Italian entity but does not yet have the local HR and payroll capability needed for a particular hire or workforce program.

Italy has another important consideration: employment terms are heavily influenced by the applicable CCNL (collective bargaining agreement). The employee’s classification can affect minimum pay, working hours, notice periods, additional salary payments and benefits. A local provider can help apply the appropriate requirements when the employee is hired.

For international companies, an EOR in Italy can therefore be used as either a market-entry option or a longer-term way to employ a smaller Italian workforce without building a full local employment operation.

Why do companies choose an EOR provider in Italy?

Companies choose an EOR in Italy because it lets them hire more quickly and with less internal setup than registering as a foreign employer or building local payroll. The provider is already able to employ staff locally, so the company can move from an accepted offer to contract and onboarding without completing its own employer registrations first.

The EOR also gives HR and finance one local process for the employment contract, payroll, contributions, required benefits, payslips and employee questions. It applies the correct collective labour agreement classification, which determines minimum pay, working hours, allowances, extra salary months, benefit-fund contributions and TFR accruals.

This is especially useful during market entry, while an entity or direct-employment setup is still being built, or when internal teams do not yet run Italian payroll. The client continues to choose the employee, set the role and manage performance and daily work, while the EOR handles the employment administration.

How much does an employer of record cost in Italy?

An employer of record in Italy may charge approximately USD 199-699 per employee per month. This is an indicative commercial range rather than a regulated or standard Italian fee, and actual quotations may be substantially higher or structured as a percentage of payroll. The employee’s salary, employer contributions, extra salary months, required benefits and end-of-employment payment are separate costs paid on top of this service fee.

The monthly fee usually covers the provider’s work as the employer, including the employment contract, payroll and employee support. Onboarding, immigration assistance, optional benefits and additional HR services can change the price. Headcount and the length of the commercial agreement can also affect the quote.

The employee’s role and classification under the applicable national collective labour agreement, known as a CCNL, shape the remaining employment costs. They determine minimum pay, allowances, overtime or shift payments and required benefit-fund contributions. The provider also accrues Trattamento di Fine Rapporto (TFR), an end-of-employment payment that builds up each year. The client funds TFR and any extra salary months required by the agreement.

What is the difference between an EOR and a PEO in Italy?

An EOR in Italy employs the worker, while a PEO provides payroll or HR support to a company that remains the employer. The difference is who employs the person and who must pay the salary and contributions.

The EOR signs the employment contract, pays the employee and handles payroll, contributions and contract changes. When the employee works under the client’s direction, the provider needs Ministry authorisation to assign staff to clients. The arrangement is generally governed by Italy’s rules on somministrazione di lavoro, irrespective of the “EOR” label used commercially. The client manages the role and looks after workplace safety.

With a conventional PEO service, the client employs the person through its own entity or foreign-employer registration. The PEO may run payroll, administer benefits and support HR, but the client signs the contract and remains responsible for the employment terms. Providers sometimes use “global PEO” to describe an EOR service. The contracts should therefore state who employs the worker and what the provider will handle.

Can EOR services in Italy support contingent or fixed-term workers?

Yes, EOR services in Italy can support fixed-term and permanent workers, but the provider must be authorised by the Ministry of Labour and listed in the national employment-agency register before assigning staff to a client. The worker’s employment contract and client assignment are separate, so a fixed-duration project does not always require fixed-term employment.

For example, the provider may employ a worker permanently and place them with a client for a defined project. It can also use a fixed-term employment contract. Before doing so, it checks earlier contracts, renewals and extensions because these can limit the term available. The employee receives the assignment’s start date and expected duration in writing.

The relevant labour agreement can add further conditions. Italian rules also limit the share of agency workers a client can use, although the applicable calculation and exemptions depend on whether the agency employment and assignment are fixed term or indefinite and on the relevant collective agreement. As a general statutory rule, fixed-term employees and fixed-term agency workers together are subject to a 30% limit calculated against the client’s permanent workforce, although collective agreements and statutory exemptions can alter the result.

The worker must receive pay and conditions at least as favourable as those of comparable client employees throughout the assignment.

Do EOR services in Italy include the 13th month salary?

Generally, yes, where the applicable CCNL or employment terms provide a 13th-month salary. The entitlement and calculation should be checked under the specific CCNL rather than treated as an identical statutory payment for every employee. The client funds it as part of the employee’s pay, separately from the provider’s monthly service fee.

The employee earns part of the payment through each month worked. The provider records the amount in payroll and pays it when the client normally pays at the time required by the applicable CCNL, commonly in December.

Some CCNLs also require a 14th-month salary. The employment offer and EOR quote should show how many instalments make up the annual gross salary and when they are paid. This makes the full salary commitment clear from the outset and keeps the extra month from being treated as a discretionary bonus or an unexpected addition to the approved budget.

What makes CXC the top EOR partner for international companies hiring in Italy?

CXC stands out as an EOR partner for international companies because it combines more than 30 years of global workforce experience with local employment expertise in Italy and support across 100+ countries.

In Italy, that local expertise is important when applying the correct Contratto Collettivo Nazionale di Lavoro (CCNL) and employee classification. These can affect minimum pay, working hours, additional salary payments, benefits, notice periods and other employment terms.

CXC also supports EOR, contractor management and payroll, allowing companies to manage employees and contractors through the same global partner. This can be particularly useful for organisations hiring across several countries or using different workforce models as they grow.

Companies get the scale of an international workforce partner while still having access to local specialists who understand the employment requirements affecting their Italian hires.

Speak to our team to learn more about CXC’s EOR services in Italy.

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With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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