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employment law overview italy 2019-2020LABLAW — Studio Legale / Proud Member of L&E GLOBAL

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table of contents.

i. General overview 01II. PRE-EMPLOYMENT CONSIDERATIONS 05III. EMPLOYMENT CONTRACTS 06IV. wORkINg CONDITIONS 07V. ANTI-DISCRIMINATION LAwS 09VI. SOCIAL MEDIA AND DATA PRIVACY 11VII. AuThORISATIONS fOR fOREIgN EMPLOYEES 12 VIII. TERMINATION Of EMPLOYMENT CONTRACTS 13IX. RESTRICTIVE COVENANTS 19X. TRANSfER Of uNDERTAkINgS 21XI. TRADE uNIONS AND EMPLOYERS ASSOCIATIONS 22XII. EMPLOYEE BENEfITS 25


i. general overview

2. Key Points•For each industry sector there is a NationalCollective Bargaining Agreement (hereinafter,also, “NCBA”) that regulates the employmentrelationship.

•Companieswithmorethan15employeescomeundertheumbrellaoftheWorkers’Statute.

•Italian labour laws and National CollectiveBargaining Agreement provisions may only beamendedbyemployersinamorefavorablewayfortheemployees.

•The collective dismissal procedure shall befollowedwhenatleast5dismissalsforeconomicreasons will be served within 120 days by acompanywithmorethan15employees.

•Executives are included in the calculation thattriggersacollectivedismissal.

•There is no longer a need to give a reason forenteringintoafixed-termcontract.

•Reinstatement isno longer the sole remedy forunfairdismissal.

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3. legal frameworKIn Italy, individual contracts of employment andlabour relationships are governed, in order ofpriority,by:

first. The Republican Constitution: sets forthgeneral principles and regulates some issuesconcerningemployment.

second. TheCivilCode:TheCivilCode,enactedin 1942, regulates employment and labourmatters under Section III (“On the employmentrelationship”),articles2094-2134.

third. Laws enacted by Parliament: Italy hasextensive employment and labour legislation;the objective has traditionally been to protectemployees.

fourth. Regulations issuedby authoritiesotherthanParliamentandthegovernment.

fifth. NationalCollectiveBargainingAgreements.

sixth. Custom and practice – The customsand practices of the parties to an employmentrelationshipapplywheretheissueisnotgoverned

1. introductionItalian employment laws have always been employee-friendly, reflecting the principles of the ItalianConstitution. However, the global economic downturn has forced Italian lawmakers to look at ways toenhanceflexibilitywithintheItalianjobmarket.ThemostrecentItalianreformonlabourlaw,thesocalledJobs Act, has grantedmore flexibility to the employers through i) a “gradual” protections against unfairdismissals, directly linked to the lengthof service (for thosehiredonopen-endedemployment contractsafter7thMarch2015),ii)thepossibilityundercertainconditions,todowngradeemployees,iii)thepossibility,undercertainconditions,toutilisefordisciplinarypurposes,thecontentofcompanymobiledevicesgrantedtotheemployees,tostimulatenewhiresandattractnewforeigninvestmentintoItaly.Italyisgoingthroughimportantpolitical,socialand legalchangesatthemomentandemployment lawyersarewitnessingfirst-handhowthisimpactsbusinessesandtheItalianworkforce.Italianemploymentlawisstillaworkinprogressandtheendproductwillhopefullybeworthyoftheprestigiouslabel:“MadeinItaly”.


employment law overview2019-2020 / italy

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bylegalprovisionsorbytheprovisionsofacollectiveagreement.Moreover,thosecustomsandpracticesthataremorefavourabletoemployeesprevailoverlegalprovisions,butdonotprevailoverindividualemploymentagreements.

Furthermore Italy, as one of the member statesof the European Union (EU), having signed theTreatyofRomeonMarch25,1957,issubjecttoEUdirectivesand regulationsand to thedecisionsoftheEuropeanCourtofJustice.

4. new develoPments Thanks to the Jobs Act (Law no. 23/2015), foremployees hired under an open-ended contractafter7thMarch2015,theso-called“employmentcontractwithgrowingprotections”thereisnowinplaceadifferentsetofremediesintheeventofanemployee’ssuccessinanunfairdismissalclaim.

In themajority of cases the remedy is damages,which is calculated on the basis of the dismissedemployee’s length of service with the company.Reinstatement has now become the exceptionratherthantherule.

As from 25th June 2015, an employer mayunilaterally change an employee’s duties andtasks to those corresponding to a lower job level(notethattheemployeeremains inthesame jobcategory, with the same salary), if the followingconditionsaremet:

•there have been changes to the company’sorganisational set-up, involving the jobpositionoftherelevantemployee;

•the National Collective Bargaining Agreementprovidesso;

•there has been a specific agreement signedbeforethePublicEmploymentOffices.

Asof24thSeptember2015,employersareallowedtoaccessthecontentofcompanydevicesgiventoemployeestoperformtheirjob(e.g.smartphone,personalcomputer,tablet),andsuchcontentmaybeusedforthepurposeofdisciplinarysanctions.

As of 12th March 2016, resignations, mutualterminations and their revocations must be filedelectronically by employees, on the Governmentwebsite, following a specific procedure set forth

bytheMinisterofLabourDecreepublishedon11January2016.

Thereisaheatedon-goingdebateinItalyregardingdataprivacyandmonitoringfromadistance,alsoconsidering the new law and in anticipation oftheguidelinesfromtherelevantAuthority,alsoatEuropeanlevel.

In this regard, please note that, according to aRulingof the ItalianCourtof Cassation issuedon27thMay2015,itisnotunlawfulforanemployertocreateafakeFacebookprofileinordertouncoveremployees’ negligence. According to the Court,the employer’s behaviour was lawful and validbecause, while always respecting the employees’dignity and freedom, monitoring employees isallowed if the purpose is not to evaluate theworking performance but, for example, to avoidriskofdamagetocompanyproperty.

A. “DIgNITY DECREE” AND ITS MOST SIgNIfICANT PROVISIONS CONCERNINg EMPLOYMENT RELATIONShIP On July 14, 2018, the so-called “Dignity Decree”(Law Decree n. 96/2018) was issued. Followingparliamentary commissions’ amendments, onAugust12,2018,Decree’sconversionlaw(Lawno.96/2018)enteredintoforce.

ThementionedDecreeintroducedveryimportantinnovations concerning many employment lawmatters such as fixed-term contracts, supply ofwork, and penalties in the event of illegitimatedismissal as provided by the so-called Jobs Act(for open-ended contracts stipulated afterMarch2015).

The new provisions respond to the Governmentpurpose of fighting the issue of unstableemployment.

Please find below a brief overview of the mostsignificant reforms concerning employmentcontracts,withspecific referenceto issues,whichhavemostlyattractedthepublicattention,becauseoftheirsignificantimpactonbusinessorganisations.



B. fIXED - TERM CONTRACT

Atermofnomorethan12monthsmaybeappliedtoemploymentcontracts.

A further term, in any case no longer than 24months (instead of 36 months, as previouslyprovidedbyLegislativeDecreeno.81/2015),maybeappliedonly inthepresenceofat leastoneofthefollowing“conditions”:

•temporaryandobjectiveneeds,unrelatedtotheordinaryactivity,forotheremployees’substituteneeds;

•requirementsconnectedtotemporary,significantand non-predictable increases of the ordinaryactivity.

The above-mentioned “conditions” shall beprovided also in case of extensions of alreadypendingfixed-termcontractsexceeding12months,orincaseofrenewals.

Given the maximum duration abovementioned,contract extensions cannot be more than four(insteadofthepreviousfive,providedbyLegislativeDecreeno.81/2015).

In case of execution of a fixed-term contractlonger than12months, in theabsenceof oneofthe specific abovementioned “conditions”, theagreement is converted into anopen-endedone,asof thedate inwhich the limit of 12months isexceeded.

C. TRANSITIONAL PERIOD

The newprovisions apply to fixed-term contractsstipulatedaftertheentryintoforceoftheDecree,namely July 14, 2018, as well as to fixed-termcontractextensionsandrenewalscarriedoutafterOctober31,2018.

In summary, pleasefindbelowabrief schemeofthetransitionalperioddisciplineconcerningfixed-termcontracts.


within october, 31, 2018

from november 1, 2018

Maximumterm

Extensionsmaximumnumberandconditions

Renewalsconditions

Noconditionstobeprovided

Maximumof5Noconditions

36months 36months

Maximumof4,Conditionshavetobeprovidedafter12

months

Conditionshavetobeprovided

fixed-term contracts signed within july 13, 2018

fixed-term contract signed starting from july 14, 2018

12months(24,onlyinthepresenceofconditions)

Maximumof4,Conditionshavetobeprovidedafter12

months

Conditionshavetobeprovided


Fixed-termcontractsenteredintowithexecutive’sapprenticeshipsarenotsubjecttothetypicalrulesregardingfixedtermcontracts.

D. SuPPLY Of wORk

A mandatory maximum number of fixed-termsuppliedemployeeshasbeen introduced forusercompanies.

In fact, given any different NCBA provision, theuser company is entitled to a maximum numberoffixed-termsuppliedemployees,whichshallnotexceedthepercentageof30%ofthetotalnumberofitsopen-endedcontractemployees.

Thenewprovisionsconcerningmaximumterms(12monthsor24monthsonly inthepresenceoftheso-called “conditions”), extensions and renewals,havealsobeentransposedtofixed-termcontractsstipulated between employment agencies andemployees.

Please note that Decree’s conversion law (Lawno. 96/2018) has expressly clarified that theabovementioned “conditions” apply only to usercompanies: for this reason, according to firstinterpretations of the lawprovision, employmentagenciesshallindicateintheirfixed-termcontractsthe “conditions” adopted and communicated bytheusercompany.

Failure to comply with the abovementionedprovisions leads to the conversion of the fixed-termcontractintoanopen-endedone,whichwillcometobeheldbytheemploymentagency,asthe“formalemployer”ofthesuppliedemployee.

Additional penalties have been introduced asregards the new regulated figure of “fraudulentsupplyofwork”.

Infact,whensupplyofworkiscarriedoutwiththeonlyspecificpurposeofavoidingmandatorylaworNCBAprovisions,theemploymentagencyandtheusercompanyshallbepunishedwithafineequaltoEuros20,foreachemployeeinvolvedandeachdayoflaboursupplied.

The same rules concerning fixed-term contracttransitionalperiodsapplytosupplyofwork.

E. fIXED – TERM AND SuPPLY Of wORk RENEwAL CONTRIBuTIONS

To each renewal of fixed-term contracts (alsostipulated in the context of supply of work), theadditional contribution equal to 1.4%, providedbytheso-calledForneroLaw(Lawno.92/2012),isincreasedby0.5%,tobepaidbytheemployer.

f. PENALTIES fOR ILLEgITIMATE DISMISSAL

The“DignityDecree”increasedpenaltiesapplicableto illegitimate dismissal of employees hired afterMarch7,2015 (asprovidedby LegislativeDecreeno.23/2015).

Underthenew legislation, thecompensationdueto dismissed employees will range between aminimumof6andamaximumof36months’salary,taking into consideration the length of service(while, in the previous legislation, the indemnityrangedbetweenaminimumof4andamaximumof24months’salary).

Theabovementionedamounts arehalved (withinthemaximumlimitof6months)fordismissalsunderthe so-called “mandatory protection” (applicabletocompaniesemployingupto15employees).

G. youth employment INCENTIVES

Upto2020,employersareentitledtobenefitfromsocial security contribution reductions of 50%,in case of hiring under 35 employeeswith open-ended employment contracts. The reduction isappliedonamonthlybasis,foramaximumperiodof 36months, and themaximum amount of thereductionis3000Eurosonanannualbasis.

h. OCCASIONAL wORk

Companies operating in the tourism sector andemployingupto8employeescannowbenefitfromtheoccasionalwork-vouchersystem.


ii. Pre-emPLoYment considerations 1. does a foreign emPloyer need to establish or worK through a local entity to hire an emPloyee?No,itdoesnot.Theforeignemployerneedstofilefor an Italian tax number and elect a domicile inItaly.Ofcourse,thesituationshouldbeevaluatedhaving regard to the activities to be performed.Morespecifically, should the foreignemployerbeactiveinthetradesector,withtheemployeehavingto perform bargaining activities, the risk of theconstitutionofastableorganisationwouldbehighandwouldhaveanimpactunderataxperspective.

2. limitations on bacKground checKsAccording to Article 8 of Law 300/1970 (theLaw), prior to hiring and during the employmentrelationship, the employer may not carry outany checks or investigations, even throughthird parties, regarding the employee’s politicalopinions, religious beliefs, union membership,or on anymatterswhich do not strictly relate tothe employee’s professional skills. The reasoningbehindsuchprovisionsistoprotecttheemployee’sprivacy and prohibit any interference by theemployerintheirprivatelivesandatthesametimepreventinganyinformation-gatheringinvestigationthatmaythentriggerdiscriminatoryaction.

Therefore, any such investigation is alwaysprohibited, as is any investigation of facts thatcannot be objectively used to demonstrate theemployee’s skills, competence, experience andcompatibilitywiththespecificdutiestobeassigned

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tohim/her.Thisrulealsoappliestocheckscarriedout throughsocialnetworks,whicharebecomingcommon among HR departments and head-hunters.

Thisrulealsoappliestocheckscarriedoutthroughsocial networks, which are becoming commonamongHRdepartmentsandhead-hunters.Pleasesee below a list of background checks that areallowed:

•verification of academic qualifications andcredentials;

•verificationofemploymenthistory;•verification of personal references identified bytheapplicant;

•search of motor vehicle records/validation ofdriver’s license:onlyallowed if required for thejoband if there is theconsentof thecandidate(theCompanymayaskthecandidatetoshowhisdrivinglicense).

•criminal record search: only admissible ifrequiredbythenatureoftheduties(i.e.wherethejobinvolveshandlingmoney)andifthereistheconsentofthecandidate;

•drug/alcohol screening: allowed if performedbypublicmedical centers (notbydoctorshiredby the employer) and only if carried out oncandidates that are going to perform high-riskduties, as listed by LabourMinister Decree no.309/1990.



iii. emPloyment contracts1. minimum requirementsEuropean Union Directive No. 533/91 hasbeen implemented in Italy and requires thatinformationon themain termsand conditionsofemploymentrelationshipsbeevidencedinwritingin the employment contract and provided to theemployee within 30 days of hiring. In general,individualemploymentcontractsmustspecify:

•partiestotheemploymentagreement;•the starting date of the employment and thedurationofthetrialperiod,ifany;

•the expiration date, if the employment is for afixedterm(wherethesecontractsarepermittedbylaw);

•the salary,method for calculationof the salary,frequency of payment, and any particular termor condition related to the salary and fringebenefits;

•theworkinghours;•theannualentitlementtopaidholidayleave;and•the employee’s duties and the related work“category”asestablishedbytheCivilCodeunderarticle2095.

2. oPen-ended contractsAnemploymentcontractnormallyhasanunlimitedduration.

3. trial PeriodEmploymentcontractscanprovideforatrialperiod(“periododiprova”).Duringthisperiodeachpartyis free to terminate the contract without noticeandwithoutthepaymentofanyindemnityinlieu

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of suchnotice.Thedurationof the trialperiod isset by the applicable NCBA and varies accordingto different categories of employees (maximumdurationbeing6monthsforhighlevelemployees).

Article 2096 of the Civil Code requires that thetrialperiodbewrittenintheemploymentcontractandmust be entered into on the first day of theemployment at the latest. Failing to meet thisrequirementrendersthetrialperiodnullandvoidandtheemploymentisconsideredfullyeffectiveasofthebeginning.

4. notice PeriodUponterminationofanopen-endedemploymentcontract, unless the contract is terminated for“just cause” (a reason that does not allow thecontinuation of the employment relationship)boththeemployerandtheemployeeareentitledto a notice period, the duration of which variesaccording to the employee’s length of serviceand professional level and as established in theapplicableNCBA.

In case of termination due to a decision of theemployer, it can exempt the employee fromworking during the notice period while paying acorresponding payment in lieu of notice. In caseofterminationduetoadecisionoftheemployee,ifhe/she resignswithoutgiving thenoticeperiodprovided by the applicable collective agreement(withtheexceptionofresignationfor“justcause”,wherethenoticeisnotduebytheemployee)theemployerhastherighttowithholdtheamountofthepayment in lieuofnotice from thepaymentsthat the employee is entitled to receive as aconsequenceoftheterminationoftheemploymentrelationship.



iv. worKing conditions 1. minimum worKing conditionsInItaly,themostimportantprovisionsincludedinanemployment contract areprovidedby the lawand by the applicable NCBA. In particular, NCBAsets the terms and conditions of employment,amongst which are: categories and related jobdescriptions; duties and obligations; minimumwages; job retention rights during absences duetoillness;salaryincreasesduetolengthofservice;termination,resignation,criteriaforcalculationofthe severance pay; night work;maternity leaves;holidays.

2. salarySalary is usually paid at the end of the workingmonth, as established in the company policiesor by the NCBA, with the employer deductingall applicable social security contributions andwithholding taxes. Italian Law explicitly providesthat thesalarypaid toemployeesmustbestatedin a pay slip (produced by the employer or by athird party on the employer’s behalf) specifyingtheperiodofservicewhichthesalaryrefersto,theamount and the value of any overtime, togetherwith all theelements that constitute the amountpaidaswellasallwithholdingsmadeinaccordancewith Italian law. Moreover, Italian law providesforanannual13thpayment,paidonceayearontheoccasionoftheChristmasholidaysthatusuallycorresponds to one month’s remuneration. Inaddition, NCBA or even individual contracts mayprovide for the payment on the 14th payment,usuallypaidinJuly.

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3. maximum worKing weeKThe maximum length of the working week isestablishedbythecollectiveagreements.However,theaverageweeklyworkingtimecannotexceed48hours, inclusiveofovertime.Theaverageworkingtimemustbecalculatedoveraperiodof4months;however,theapplicableNCBAcanextendthattermforobjective,technicalororganisationalreasons.

4. overtimeThe needs of a particular company may, inexceptional circumstances or on an occasionalbasis, require employees to work beyond their“usual working hours.” Overtime is regulated bylaw and by the applicable collective agreement.Article5ofLegislativeDecreeno.66/2003providesthat normally the NCBA governs the conditionsofovertimeworkandthat, in theabsenceofanyprovisionsofthecollectiveagreement,overtimeisonlypermittedsubjecttotheagreementbetweentheemployerand theemployeeand foraperiodnotexceeding250hoursperannum.

Finally,thelawprovidesthatovertimeiscalculatedseparatelyandpaidbywayofanincreaseinsalarypursuant to the NCBA, which may in any casepermit that overtime be compensated with timeoff in addition or as an alternative to the salaryincreasesthatmaybedue.



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5. health and safety in the worKPlace Thedutyoftheemployertoprovidesafeconditionsfor workers can be found in articles 32, 35, 38,41 of the Italian Constitution and article 2087.When managing and operating its business, theemployerisrequiredtoadoptallmeasuresthat—inlightofthespecifictypeofworkperformed,pastexperience,andtechniquesused—arerequiredtoprotectthepsychologicalandphysicalwellbeingoftheemployees.

Themainprovisionsrelatingtohealthandsafetyintheworkplacearebasedonthefollowinggeneralprinciplesofprevention,including:

•eliminationorreductionofrisksatthesource;•updating safety measures in relation to thetechnologicalevolution;

•safety of psychological and physical health ofworkers;

•attention to the health conditions and skills ofworkersforthepurposeofjobassignment;and

•surveillance of workers to monitor theiradherencetosafetymeasuresanduseofpersonaland communal protective gear provided by theemployer.

In addition to these general principles, there aresomespecificdutiesthattheemployermustfulfill:i)evaluationofrisks;ii)identificationofprotectiveand preventative measures; and iii) preparationof the plan for the improvement of safety at theworkplace;and

Otherdutiesoftheemployerinclude:

•nominationof thepersonwho is responsibletoperform the Prevention and Protection Service(insideoroutsidethecompany);

•nomination of the Officer in charge of thePreventionandProtectionService;

•preparation of a document, including theevaluation of all the risks for safety and healthconnected with the activity of the company,protective and preventative measures adoptedin light of the risk evaluation, and a plan toimproveworkplacesafety(thedocumentshouldbe prepared together with the Prevention andProtection Officer, and the doctor in charge,wherehealthsurveillanceismandatory);

•nominationofthedoctorincharge,inthecasesprovidedforbythedecree;

•appointmentof theemployees inchargeoffireprevention,rescue,firstaidandmanagementofemergencies;

•providing employeeswith adequate equipmentandgearforpersonalprotection;

•keeping a chronological record of work injuresdetailingabsencesfromworkforatleastoneday;

•instructingemployeestoabandontheworkplaceintheeventofaserious,immediateandinevitabledanger;and

•organisationofsecurityandhygienesignage.

The employees shall be informed regarding thefollowing:safetyinstructionsandrisksderivingfromthe activity carried out by the company; specificrisks related to the workplace and preventionmeasures adopted by the company; first aid, firepreventionandevacuationprocedures;andnamesof the employees in charge of fire prevention,evacuation and first aid. The employer shall alsotraintheemployeesinrelationtosafetyandhealthin the workplace. In particular, the training shallbe sufficient and adequate, updated, free, andcarried out during working time in cooperationwithunions.Theemployeesshalltakecareoftheirownsafetyandhealth,andofthesafetyandhealthoftheotherpersonspresentintheworkplace,bymeansof:

•followinginstructionsreceivedbytheemployer;•correctlyusingmachines,tools,workequipment,andpersonalandcommunalsafetydevices;

•immediately informing the employer about anydeficienciesofthesafetydevices,aswellasanyotherdangeroussituationofwhichtheybecomeaware;

•not removing safety devices withoutauthorisation;and

•utilisingsanitarycontrolsrequiredbylaw.

Any employee’s breach of the above obligationscouldresultindisciplinarysanctions.



V. anti-discrimination laws1. brief descriPtion of anti-discrimination laws Prohibitions against discrimination have been inplacesincethe1970’swhentheWorkers’Statute(LawNo.300/1970)cameintoforce.TheWorkers’Statuteprohibitsanykindofdiscriminationbasedon:

•gender;•politicalopinions;•union-relatedactivity;•religion;•race;•language;•disability;•age;•sexualorientation;and•personalbelief.

Furthermore,employersmaynot:

•makeemployment conditionalon the fact thattheemployee isor isnot amemberof a TradeUnionorthatheorshestopsbeingamember;or

•dismissanemployee,ordiscriminateagainsthim/herwhenassigningajob,whenchangingaplaceof work, in disciplinary procedure or prejudicehim/herbecauseoftheemployee’smembershipin a trade union association, because of theemployee’sunion-relatedactivityorbecausetheemployeehasparticipatedinastrike.

The same anti-discrimination provisionsabovementioned apply to religious discriminationaswell.

However, according to Legislative Decree No.216/2003, special conditions based on religious

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convictions existing within religious organisationscouldbeallowedifsuchconvictionsarenecessaryto perform the working activity within theseorganisations.

Inthecaseofoccupationalactivitieswithinchurchesorotherpublicorprivateorganisations,theethosofwhich isbasedonreligionorbelief,adifferenttreatmentbasedonaperson’sreligionorbeliefisnotdiscriminatorywhere,byreasonofthenatureoftheparticularoccupationalactivitiesconcernedorof thecontext inwhichtheyarecarriedout,aperson’s religion or belief constitutes a genuineand determining occupational requirement, islegitimateandtherequirementisproportionate.Inaddition,anemployerisobligedtoemployafixednumberofdisabledpeople,dependingonthesizeofthecompany(LawNo.68ofMarch12,1999).

2. extent of Protection Several lawswere recently passed, implementingEuropean Directives on Equal Treatment, RacialEquality and Employment Framework. Such lawsmakeitunlawfulforanemployertodiscriminateintheprocessesof:hiring,promoting,remunerationand terminationorwith regard toadmission toatrainingorapprenticeshipprogram.

Furthermore,directandindirectdiscriminationareprohibited.

Direct discrimination occurs when a person istreated less favorably than another person in acomparable situation on one of the prohibitedgrounds.

Indirectdiscriminationoccurswhenanapparentlyneutral provision, criterion, practice, agreementor conduct would put someone at a particulardisadvantagecomparedwithotherpersons,ononeoftheprohibitedgrounds.




3. Protections against harassmentThe same anti-discrimination provisionsabovementionedalsoapplytoharassment.

Harassment is unwanted conduct based on aprohibited ground with the purpose or effectof violating the dignity of a person and creatinga hostile, degrading, humiliating or offensiveenvironment.

Sexualharassmentoccurswhenunwantedconductwith a sexual connotation (expressed in physical,verbal or non-verbal ways) takes place with thepurposeoreffectofviolatingthedignityofapersonandofcreatingahostile,degrading,humiliatingoroffensiveenvironment.

4. emPloyer’s obligation to Provide reasonable accommodations There are no specific labour laws putting anobligationontheemployertoprovidereasonableaccommodations of any kind, other than thoserequired by law related to health and safety atwork.

Employers, like public offices, must provide theinfrastructure needed to ensure that disabledpersons/employeeshaveaccesstotheoffices,suchasstairsadaptedforthedisabledand/orelevators,disabledtoiletsetc.

Italian law does not oblige employers to providespecificaccommodationsforreligiouspurposesofanykind.

5. remediesAnemployeewhohasbeendiscriminatedagainstmay sue the employer before the Labor Court,under an ordinary process or an emergency one,claimingformonetaryandnon-monetarydamages.

There is no statutory minimum or maximumamountofdamages:itisattheJudge’sdiscretion.The LaborCourtmayorder theemployer to stopthe discriminatory conduct, to remove the effectoftheunlawfulconduct,andorderaplantoavoid,within a certain period of time, any repetitionofthediscriminatoryconduct.

TheEqualOpportunitiesCommissionhasthepowerto promote good anti-discriminatory practices.It canmonitor and, in the case of discriminatoryconduct,asktheemployertoarrangeaprogramtoremovethediscrimination inordertoresolvethematter.Itcanrepresenttheemployeeincourtandbringproceedingsagainsttheemployerincasesofcollectivediscrimination.

The Commission for Equal Treatment can issuecodes of conduct and has the power to askemployers to provide information so that it canmonitortheequaltreatmentofmenandwomen.

TheCommissionforRacialEqualityhasthepowerto support employees during a claim, investigatediscriminatory conduct, ask the employers forinformation and documents, and give advice andrecommendations.

LegislativeDecreeNo.198/2006providesthatanyagreement,unwelcomeconductorgender-relatedact that takesplacewiththepurposeoreffectofviolating the dignity of a person and of creatinga hostile, degrading, humiliating or offensiveenvironmentisnullandvoidifitisinresponsetoacomplaintorlegalactionbroughtbytheemployeewiththeaimofenforcingequaltreatment.

Accordingtocaselaw,whentheperpetratorofthediscriminatory conduct isnot theemployerbut acolleague of the worker who was offended, it ispossiblethatthislatterpersonmaybeconsideredliablefordamagesderivingfromthediscrimination.


vi. social media and data Privacy 1. restrictions in the worKPlace

A. CAN ThE EMPLOYER MONITOR, ACCESS, REVIEw ThE EMPLOYEE’S ELECTRONIC COMMuNICATIONS?

Withreferencetothecompanydevicesgrantedtothe employees for work purposes, the employeris entitled to block internet access, or access tocertainwebsites only and/or social networks, fortheentireworkingdayorduringcertaintimes.Theemployerhasnocontroloveremployees’personaldevices. However, should the employee use his/herpersonaldeviceduringworkingtimeand/orinviolationoftherelevantcompanypolicy,thismaytriggerdisciplinaryaction.

2. emPloyee’s use of social media to disParage the emPloyer or divulge confidential informationAccordingtothespecificcircumstancesofthecaseinquestion,employee’sutilisationofsocialmediatodisparage theemployerordivulgeconfidentialinformation may trigger disciplinary action (evendismissal)andmayconstituteacrimeaswell.

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By Ruling dated 1st August 2014, the Tribunal ofMilanupheldadisciplinarydismissalasvalid,basedonthefactthattheemployeepostedonFacebookapictureshowinghimandothercolleagues,alongwith offensive comment against the company.AccordingtotheJudge,suchbehaviorisconsideredas clearly breaching the fundamental duty ofdiligence, honesty and loyalty required by theemployees,thereforethedisciplinarydismissalwaslawfulandjustified.



vii. authorisations for foreign emPloyees requirement for foreign emPloyees to worK There are no specific rules related to theemploymentofEuropeanUnion(“EU”)citizensastheycanmoveandworkineveryEUCountry,freeof restrictions.Ontheotherhand, limitationsareprovidedbythelawwithrespecttonon-EUcitizens.Visasanddifferentworkpermitsarenecessary inthefollowingsituations:

•Hiringofnon-EUcitizens:theiremploymentcanstartonlyafteraspecificimmigrationprocedureiscompleted,whichincludescomplyingwiththelimitationoftheannualquotas.Aftertheannualquotas are established, a non-EU citizen mustrequest a work visa, assuming that they havebeenofferedemploymentinItaly.

•Secondment in Italy of non-EU citizens: this isnot subject to annual quota limitations, butshouldbeactivatedonthebasisofaspecialandmoresimplifiedprocedure,strictlyrelatedtothepurposesofthesecondmentinItaly.



viii. termination of emPloyment contracts 1. grounds for termination UnderItalianlaw,anyterminationofemploymentmust be justified. The reasons to terminate anemployment contract can be divided in threemaincategories:

•Objectivejustifiedreasons-whicharerelatedtotheabolitionofajobpositionduetoacompany’seconomic situation regarding production, workorganisation,orproperfunctioning;

•Subjective justified reasons -whichoccurwhenthe employee commits a breach of his/hercontractualobligationsor isguiltyofnegligencein the performance of his/her duties, but thebehavior is not so serious as to constitute adismissalforjustcause;or

•Just cause (“giusta causa”) – that indicates anyserious misconduct or breach that renders thecontinuation of the employment impossible,including,theft,riot,seriousinsubordination,andanyotherbehaviorthatseriouslyunderminesthefiduciaryrelationshipwiththeemployer.

2. collective dismissalsUnder Italian law, a collective dismissal occurswhenatleastfivedismissalsareservedinthesamebusiness unit or in more units within the samedistrictandinthetimeframeof120days,duetoreduction,transformation,orclosureofbusiness.

According to Law 223/1991, employers withmore than 15 employees must follow a specificinformation and consultation procedure involvingthe Trade Unions with regard to collectivedismissals. The employer must notify, in writing,thecompetentemploymentoffice,theemployees’staff representatives (RSA - “rappresentanze

sindacali aziendali” or RSU - “rappresentanzesindacaliunitarie”)andtherespectiveTradeUnionsof the decision to proceed with the collectivedismissal. Intheabsenceoftheabove-mentionedemployee representative bodies, notice shall begiven to the“comparativelymore representative”tradeassociations.

Thewrittennotificationshouldexplain:

•thereasonsfortheredundancy;•the technical, organisational or productionreasonswhichnecessitatetheredundancy;

•thenumberofemployeestobemaderedundant;•thetimetableoftheredundancyplan;•possiblemeasuresplannedfortheoccupationalconsequencesoftheredundancyplan;and

•thecalculationsofeconomicawards inadditiontothoseprovidedbythelaworbytheapplicablecollectiveagreements.

Within seven days from the date of the notice’sreceipt, upon request of the Union the partiesmust meet (depending on the number ofemployees involved in the redundancy, for up to45 days) to discuss and analyse the possibility ofavoidingdismissals. Ifthepartiesdonotreachanagreement,thecompanymustgivewrittennoticeto the competent employment office regardingthe results of the negotiations, specifying thereasons for the negative outcome. Consequently,the competent employment office convenes theparties for a further negotiation, which cannot,dependingon thenumberofemployees involvedintheredundancy,lastlongerthan30days.

IfthecompanyandtheTradeUnionsdonotreachanagreement,oriftheyreachanagreementbeforethe deadline, the employer is allowed to servethedismissalsby givingwrittennotice toeachofthe employees involved.Moreover, the employershouldprovidethecompetentemploymentoffices




and the Trade Unions with a written list of thedismissed employees, stating their names, placeofresidence,qualifications,lengthofservice,age,family dependents, and a detailed description ofthe selection criteria applied for the dismissal ofeachemployee.

The selection of the employees to be dismissedshould follow the criteria provided by theagreement reachedduring thenegotiationsor, intheeventofanegativeoutcome, thecriteria laiddown by Law 223/1991 (family circumstances;length of service; technical, production ororganisational requirements). Upon dismissal, allemployeesareentitledtothepaymentoftheusualseverancepayments,includingthenoticeperiodortheindemnityinlieuthereof.

Please note that by the Ruling issued on 13thFebruary2014, theEuropeanCourtof Justicehasdeclared that the Italian legislation on collectivedismissalsdoesnotmeetthelegalcriteriasetoutby European Directive no. 98/59/CE, because itdoesnotinvolveexecutives.

Thus with the passing of Law no. 161/2014 theItalian legislature has for the first time providedthat executives have to be included in thecalculation that triggers a collective dismissal,andthatcompanieswillneedtosetupaseparatenegotiatingtablewiththeexecutives.

3. individual dismissalsDismissalmustbegiveninwritingandmustdetailthereasonsonwhichitisbased.

Whenever a dismissal is due to an employee’sconduct(constitutingeither justcauseor justifiedgrounds, depending on the gravity), an employermust follow a specific disciplinary procedureset forth by art. 7, Law May 20, 1970, no. 300(the so called “Workers’ Statute”), according towhich a letter containing the allegationsmust bedeliveredtotheemployeeoutliningthefactsandcircumstanceswherethecompanyseesthebreachof his/her obligations and giving the employee atermofnolessthan5daysofreceiptofthelettertopresent,eitherinwritingororally,his/herpossiblejustifications,andonlyaftersuchtermhasexpiredaletterofdismissalmaybevalidlyserved.

Moreover, whenever a dismissal is based oneconomic reasons a mandatory pre-emptiveconsultation phase must be carried out bycompanies employing more than 15 workers,beforethedismissalbecomeseffective.

AccordingtotheForneroReform,forthepurposesofvalidlyservingtheletterofdismissal,anemployeris bound to inform the local Labour Office of itsintention to terminate the employment, detailingthereasonsonwhichthedismissal isfounded,aswell as the possible measures developed to theextentofeasingthereallocationoftheemployee.The same communication needs to be copiedto the concerned employee as well. The LabourOffice should summon both parties within sevendays, running from the date of receipt, by theadministrativeoffice,ofthecommunicationbytheemployer and the pre-emptive procedure mustbe terminatedwithin twentydays,whichmaybesuspendedforamaximumperiodoffifteendaysincaseofdocumentedunavailabilityoftheemployee(e.g.incaseofsickness).

Thus, the overall maximum duration of the pre-emptive mandatory attempt at an out of courtsettlement is equal to forty-two days (7+20+15).However, the terms may be increased uponagreementbytheparties.

If no settlement is reached between the parties,or on expiry of the term for the procedureabove, theemployer is free toserve the letterofdismissal, that will be effective retrospectively,to the opening of the pre-emptive phase (i.e.from the communication by the employer to theLabour Office), notwithstanding the employee’sentitlementtothenoticeperiodorpaymentinlieuthereof.

Please note that the obligation of such a pre-emptive procedure is not required in case ofdismissalofemployeeshiredafter7March2015,through the so-called “employment contractwithgrowingprotections”.

Different rules apply to the dismissal of dirigenti(executives). The executive’s dismissal is deemedtobejustifiedonlyifitisasaresultof:



•objective reasons related to the employer’seconomic,organisationalandproduction-relatedneeds;or

•subjectivereasonsrelatedtoperformance.

In thecaseofparticularlyseriousmisconduct thedirigente can be dismissed for just cause. In thisevent, the dismissal is effective immediately andthedirigente isnotentitled toanynoticeperiod.Moreover,wheneveradismissalisduetosubjectivereasons, a specific disciplinary procedure mustbe followed by the employer before serving thedismissal.

A. IS SEVERANCE PAY REquIRED?

Italianlawprovidesforthepaymentofadeferredform of remuneration, otherwise known asthe severance payment (“Trattamento di FineRapporto” or TFR). Along with other minorstatutory termination amounts, the TFR mustbepaidtoemployeeswheneveranemploymentcontract is terminated, irrespective of thecause of termination. The amount of the TFRvaries depending on the employee’s salary andlength of service (it is approximately equal to8% of the yearly gross salary per each year ofemployment). Therefore, upon termination oftheiremployment,employeesareentitledto:

•paymentoftheTFR;•payment of holidays/paid permits accrued andnotused;

•paymentof13thand14thsalaryinstallmentsprorata,ifapplicable;and

•a notice period if the dismissal is not for “justcause”. If the employer exempts the employeefrom working during the notice period, theemployeemustreceiveacorrespondingpaymentin lieu of notice, which is equal to the normalsalary(plussocialsecuritycontributionsthereon)that would have been paid during the noticeperiod.

4. seParation agreementsAttheterminationoftheemploymentrelationship,thepartiesmayenterintoaseparationagreementproviding a mutual, full and final waiver of anyclaimsrelatedtotheemploymentrelationship.

A. IS A SEPARATION AgREEMENT REquIRED OR CONSIDERED BEST PRACTICE?

Thepartiesarenotobligedtoenterintoaseparationagreement,butweconsider it asbestpractice inordertoavoidfutureclaimsandlawsuit.

B. whAT ARE ThE STANDARD PROVISIONS Of A SEPARATION AgREEMENT?

Please find below the standard provisions of aseparationagreement:

•full waiver from the employee of any potentialclaimofanykindrelatedto,orconnectedwiththeemploymentrelationship,includingitsexecutionand its termination, and to thedirectorshipsoranyotherappointmentheldforthecompany;

•acceptance of the waivers by the employer,waivinganykindofclaimagainsttheemployee,withtheexceptionoffraudorgrossmisconductunknownatthetimeofthesettlement;

•incentive to leave and/or compensation to theemployeeinreturnfortheseparationagreement;

Please note that separation agreementsmust besigned before the Public Employment office inordertobefinalandunchallengeable.

C. DOES ThE AgE Of ThE EMPLOYEE MAkE A DIffERENCE?

Theageoftheemployeemayhelpthepartiesreachanagreement.Shouldtheemployeedismissedbenearretirement,thismayberelevantinnegotiatingtheamountofleaveincentive.

D. ARE ThERE ADDITIONAL PROVISIONS TO CONSIDER?

Separation agreements usually provide that theemployer pays the legal fees (or a contributiontowards them) incurred by the employee andrelatedtothenegotiationoftheagreement.Also,the parties may provide restrictive covenantsand regulateminor items suchas theemployee’srighttokeepthephonenumberand/oranyothercompanydevice,orthecompanycar.



5. remedies for emPloyee seeKing to challenge wrongful terminationUnder Italian law, if an employee were to win acaseforunfairdismissal,theremedyinmostcaseswouldbedamagesofbetween12-and24-months’salary,dependingonthegravityofthe‘unfairness’.In some particular cases the remedy could bereinstatement (discrimination or in-existence offacts onwhich thedismissal is grounded). Pleasefind below the legal framework (pre and postreform) related to the remedies that employeeshaveagainstwrongfuldismissals:


reason

reason

remedy

remedy

Dismissalforjustcauseorsubjective/objectivejustifiedreasonheldasunfounded


Dismissalforjustcauseorsubjective/objectivejustifiedreasonwithformaldefects

Dismissalnullandvoid(retaliatory,oralandsoon)


comPanies with no more than 15 emPloyees

EMPLOYEES hIRED AfTER 7Th MARCh 2015

EMPLOYEES hIRED BEfORE 7Th MARCh 2015

Reinstatement(or15months’salary)+damagesequaltothesalarythatwouldhavebeenpaidfromthedateofdismissaluntilreinstatement

(min.5months’salary)



Damagesrangingbetween2.5and6months’salary

Damagesequalto1months’salaryforeachyearoflengthofservicewithinthecompany

(max6months’salary)

Damagesequalto0.5months’salaryforeachyearoflengthofservicewiththecompany




reason

reason

remedy

remedy

DismissalforjustcauseorsubjectivejustifiedreasonwheretheallegationsarenotexistentorpunishedwithaminorsanctionaccordingtoNCBA;Dismissalforobjectivejustifiedreasonheldasevidentlynotexistent



(Whenacompanywithnomorethan15employeeson7thMarch2015,exceedssuchthresholdthroughnewemployeeshired,onopen-endedbasis,after7thMarch2015,theprotectionsystemdescribedbelowwillthenapplytoallitsopen-endedemployees,also

thosehiredbefore7thMarch2015)

Dismissalforjustcauseorsubjectivejustifiedreasonwherethefactallegedisnotexistent





comPanies with more than 15 emPloyees

EMPLOYEES hIRED AfTER 7Th MARCh 2015

EMPLOYEES hIRED BEfORE 7Th MARCh 2015




(min5months’salary)

Reinstatement(or15months’salary)+equaltothesalarythatwouldhavebeenpaidfromthedateofdismissaluntilreinsatetment(max12

months’salary)

Damagesrangingbetween12and24months’salary

Damagesrangingbetween6and12months’salary




(min6max36months’salary)


(min2max12months’salary)


6. whistleblower laws WhistleblowingwasintroducedforthefirsttimeinItalybymeansofLawN.179November30th2017,publishedintheOfficialGazetteonDecember14th2017. The new legislation established that publicandprivatesectoremployeesmustbeprotectediftheyreportillegalpracticeswithintheircompany/organisations. The law states that employeesare protected from dismissal, disciplinary actionor any form of discrimination/retaliation as aconsequence of having flagged any unlawfulpractices to the authorities. However, the LawNo. 179/2017 does not require firms to adopt acomplianceorwhistleblowerprotectionprogram.Specifically,pursuanttothenewparagraph2-bisofArticle6Decree231(rulingthecompanyliability),complianceprogramsshallincludeawhistleblowingprocedure so that officers and employees canreportviolationsofDecree231.

As a consequence, companies that have adoptedcompliance programs in accordance with Decree231 should evaluate whether their policiescomportwith LawNo. 179/2017, and companiesseekingtoimplementcomplianceprogramsshouldincorporate whistleblower protections as partof those policies. The lawdoes not provide for aspecificprocedurefortheprivatesectorformakingaqualifyingorprotecteddisclosure.However,LawNo. 179/2017 includes specific requirements forqualifying whistleblower policies. Specifically, acomplianceprogrammustprovidefor:

•more than one whistleblowing channel able toprotect a whistleblower’s identity, of which atleastonehastobecomputerised;

•the prohibition on acts of discrimination orretaliationagainstwhistleblowers;

•disciplinary measures for those who retaliateagainstawhistleblowerandforthewhistleblowerswho intentionally, orwith gross negligence, filefalseorunsubstantiatedreportsofviolations.

The law also requires that companies ensurethe confidentiality of a whistleblower’s identityto the extent permitted by Italian law. However,anonymous whistleblower complaints are notentertained. According to mandatory law, formalwhistleblower channels must be available to i)directors, managers or other subjects acting onbehalfofthecompanyoroneofitsorganisational

units; and ii) persons subject to the directionor supervisionof those in part i) above.As such,whistleblower programsneednot be available toself-employed contractors, external consultants,or others, though from a practical point of viewtheremaybegoodreasonstoincludesuchpersonswithinthescopeofawhistleblowerprogram.

Complaints must be grounded on “accurate andconsistent elements of fact”(Art. 2-bis, lett). a,Decree231).LawNo.179/2017providesprotectionagainstretaliationbypermittingwhistleblowerstoraise allegations of retaliatory and discriminatoryacts arising from whistleblowing activities to theSeniorLabor Inspectorate (IspettoratodelLavoro)personallyorthroughalaborunion.Moreover,incaseofdisputesconcerningdisciplinarymeasures,dismissals, transfers, or demotions imposed afterthe employee reported the complaint by meansof the whistleblowing procedure, the new lawrequires the employer to demonstrate that themeasure is based on grounds different from thereporting. Law No. 179/2017 does not specifyhowwhistleblower complaintsmust be escalatedorwhowithinanorganisationmustreviewthem.However,thestructureofthelawstronglysuggeststhat such complaints should be escalated to theComplianceProgramSupervisoryBody(OrganismodiVigilanza)thatDecree231requirescompaniestoadopt,aspartofqualifyingcomplianceprograms.Asanalternative,theOrganismodiVigilanzamaydeputiseanappropriateofficerorinternalfunctiontoreceiveandevaluatewhistleblowercomplaints.


ix. restrictive covenants 1. definition of restrictive covenantsAccordingtoarticle2125oftheItalianCivilCode,the non-competition covenant is an agreemententered into between employer and employee,limitingtheemployee’srighttoperformthesameactivitiesaftertheterminationoftheemploymentrelationship.

The parties may also agree to a so called “non-solicitation covenant” with reference to clientsandemployees.Suchcovenantsarenotspecificallyprovided by the Italian Civil Code, and representa specification of the general ban of unfaircompetitionprovidedbyarticle2598oftheItalianCivil Code. Indeed, such covenants do not allowa former employee to try to convince company’sclients and employees to leave the company andjoinhim/herorhis/hernewemployer.

2. tyPes of restrictive covenants

A. NON-COMPETE CLAuSES

Thenon-compete covenant limits theemployee’sright tokeepperforming thesameactivitiesafterthe termination of the employment relationship.In order to be valid and enforceable, the non-compete covenant has to be: (i) in writing; (ii)limitedintermsofactivitiesnotallowed;(iii)limitedin term of duration (max 3 years for employees,and max 5 years for managers); (iv) limited intermsofgeographicalreach;and(v)provideafaircompensation(rangingbetween20and40%oftheannualgrosssalary,accordingtocaselaw).

B. NON-SOLICITATION Of CuSTOMERS

The parties may also provide a non-solicitationcovenant related to the employer’s customers,which shall be entered into in writing (generallyprovided along with the non-compete covenant)anddoesnotrequireaseparatecompensation.

C. NON-SOLICITATION Of EMPLOYEES

The parties may also provide a non-solicitationcovenant related to the employer’s employees,which shall be entered into in writing (generallyprovided along with the non-compete covenant)anddoesnotrequirecompensation.

3. enforcement of restrictive coVenants—Process and remediesIn case of violation of a restrictive covenant, theemployer is entitled to sue the employee fordamages incurred due to the violation and limitpaymentsmadeforsuchcovenants.Therestrictivecovenantmayprovideapenaltyincaseofviolation,reserving the right to claim further damages, ifany. Please note that the Judgemay also reducethe penalty, if considered disproportionate. It isalsopossibletoasktheJudgeforaCourtordered(injunction) preventing the employee fromcontinuingtoviolatetherestrictivecovenant.




4. use and limitations of garden leave Gardenleaveassuch,doesnotexistunderItalianlaw.Indeed,anemployeehasarighttowork,evenduring the notice period. Therefore, to continuepayingthesalarytotheemployeeduringthenoticeperiodwithouthim/herworkingisonlypermittedwiththeconsentoftheemployee.Intheabsenceofsuchconsent,inordertoprevent(foralimitedperiod of time) the employee from working forother employers, the employer has two options,namely i)agree toanon-competecovenantor ii)lettheemployeeworkhis/hernoticeperiod.


x. transfer of undertaKings 1. emPloyees’ rights in case of a transfer of undertaKingUnder Italian law, a Transfer of Undertaking isregulatedbyarticle2112of the ItalianCivil Coderegarding the management of the employmentrelationships,andarticle47oftheLawno.428/1990regardingtheinformationandconsultationprocesstobe implementedbeforethetransfer.Accordingtoarticle2112oftheItalianCivilCode:

•The employment relationships of the sellingcompany’s employees carry on with the buyercompany,onthesameconditions.

•The employees are transferred automatically.However theymay challenge the transfer if, forinstance,theywerenotpartoftheundertakingtransferred;

•The transfer of undertaking itself does notrepresentareasontodismissemployees;

•The employees transferred keep all the rightstheyhaveaccruedwiththesellingcompany;

•Should the employment relationship of thetransferred employees be subject, within 3months following the transfer, to significantchangesbecauseofthetransferofundertaking,theemployeesmayresignfor justcause. Inthiscase, the employees may claim indemnity inlieu of notice. Please note that specific furtherprovisions may be provided by the relevantNational Collective Bargaining Agreementapplied/applicable to the employmentrelationship.

For managers (dirigenti) a similar protection isprovidedbytheapplicablecollectiveagreement.

2. requirements for Predecessor and successor PartiesAs per buyer and seller companies’ obligations,pleasenotethatarticle2112oftheItalianCivilCodeprovidesthatsellerandbuyercompaniesarejointlyandseverallyliableforallthecreditsaccruedbythetransferredemployeeswiththesellingcompanyatthemoment of the transfer, and that the buyingcompanyshallapplytermsandconditionsprovidedby the National Collective Bargaining Agreementapplied by the selling company, unless replacedbymore favorable terms and conditions. Also, incase of transfer of undertakingwithin companieswith more than 15 employees, article 47 of theLaw no. 428/1990 obliges both seller and buyercompaniestoimplementaUnionprocedurebeforethetransfer.



xi. trade unions and emPloyers associations 1. brief descriPtion of emPloyees’ and emPloyers’ associations Ingeneral,employeesandemployersorganisationsarestructuredasprivateassociationsgovernedbyarticles36-38oftheCivilCode.

InItaly,unionsareprimarilyorganisedbybusinesssector.Allworkersinvolvedinaparticularindustrybelongtothesameunionregardlessofthenatureoftheirparticularjoboroccupationalqualifications.

A. EMPLOYEES’ ORgANISATIONS

Unionsareeither independentorassociatedwithoneof the threeunionconfederations.The threeunionconfederationshavedifferingideologicalandpoliticalorientations:

•TheItalianGeneralConfederationofLabor(CGIL)isleft-wing-inspired;

•TheItalianConfederationofTradeUnions(CISL)iscenter-inspired;

•The ItalianLaborUnion (UIL) is left-wingwithasmallcenter-inspiredcomponent.

The most prominent exceptions to thisconfederationstructurearetheNationalFederationofManagers in IndustrialEnterprises (FNDAI)andtheNationalFederationofManagersofCommercialand Related Services Enterprises (ManagerItalia).Suchnationwidestructurehasalsobeenadoptedby various associations representing mid-levelmanagement and by the independent unions,sometimes called “autonomous unions” (namely,thosethatdonotbelongtooneofthethreemajorunionconfederations,describedabove).

B. EMPLOYERS’ ASSOCIATIONS

Employers are also organised into unions orassociations. These confederations are composedof the various employer associations, eachrepresenting a specific industry. These areestablished as private associations that aregroupedintoconfederationsaccordingtothetypeofenterpriserepresented:

•Confindustriarepresentsmanufacturers;•Confcommerciorepresentstradeandcommerceemployers;

•Confagricoltura represents agriculturalemployers.

2. rights and imPortance of trade unionsUnions are not recognised by the Italian State asentities with a legal personality and are free toregulate their internal activities as they deemappropriate. Legally, NCBA only bind individualswho are actuallymembers of the union that is asignatorytotheagreement.

Likeallprivate lawcontracts,only the signatoriesare bound and, therefore, only those employersandworkerswhohavespecificallygivenamandatetoanemployers’associationorauniontorepresentthem,maybenefit fromthecollectiveagreementconcluded on their behalf. Although this is thelegalrule,inpractice,onceacollectiveagreementis concluded, even non-union members typicallyacceptitsterms.

Sincecollectivebargainingissubjecttoprivatelaw,collective agreements are regulated by the lawsapplicabletoprivatecontractsingeneral.



3. tyPes of rePresentationTheWorkers’Statutegrantsalltheemployeestherighttoformorbecomemembersofunionsaswellas the right to perform union-related activities.Article 19of theWorkers’ Statute states that theworkcouncils(“RappresentanzeSindacaliAziendali”(RSA) and “Rappresentanze Sindacali Unitarie”(RSU)) may be formed through the initiative ofthe employees in every plantwithmore than 15workerswithintheTradeUnion’sassociationsthathavesignedthecollectiveagreementappliedinthecompany.

Employeeunionrepresentativesaregrantedsomerights, such as the right to havepaid andunpaidleave for performing union-related activities; therighttoavoidbeingtransferredfromoneplaceofworktoanother,andcannotbedismissedwithouthaving previously obtained the consent of theterritorialTradeUnionsassociation.

A. NuMBER Of REPRESENTATIVES

Thereisnolimittothenumberofrepresentativesfor the RSA. In the case of an RSU presence, foreachunionthereshallbe:

•in units employing up to 200workers, 1 unionrepresentative;

•in units employing from 201 to 3,000 workers,1union representative foreach300workersorfractionthereof;and

•inunits employingover3,000workers, 1unionrepresentative for each500workersor fractionthereof, inaddition to theminimumnumberofrepresentativesprovidedforunder(2)above.

B. APPOINTMENT Of REPRESENTATIVES

ThetermsandconditionsofthenominationoftherepresentativesaredifferentforRSAandRSU.

RSA representatives are nominated directlyby the employees who participate in Unionrepresentations, and signed the collectiveagreementappliedbytheemployer.Noformalities

andlimitsareprovidedbylawwithrespecttotheirnomination.

On the other hand, RSU representatives arenominated upon the initiative of the Union’srepresentations and their nominations follow aformal election. 2/3 of the RSU are nominatedby all the employees and 1/3 by the Union’srepresentatives.Thedateandplaceoftheelectionmustbenotifiedtotheemployeesnolaterthan8daysbeforetheelection.

4. tasKs and obligations of rePresentativesThe representatives are entitled to carry out anytypical unionisation activity, such as distributingpropaganda and promotion of the unions. Inparticular,wheretherearemorethan200workersatanygivenplantorunit,theemployerisrequiredto provide space, free of charge and exclusivelyfor the use of the union, within the workplaceor nearby, for holding meetings and conductingother union business. Where there are fewerworkers, spacemust bemade available for thesepurposes upon the union’s request. Plant or unitunionrepresentativesalsohavetherighttoaffix,inproperlydesignatedplaces,unionpublicationsandinformationregardingtheunion,itsactivities,andworkers’rightsandinterests.

5. emPloyees’ rePresentation in managementItalianlawdoesnotcontainanyspecificprovisionsallowingemployeesand/ortheirrepresentativestoparticipateinthemanagementofthecompany.

6. other tyPes of emPloyee rePresentative bodies Please find below other types of employeerepresentativebodies:




•CompanyEuropeanCommittee,providedwithinthe European companies, so-called: “CAE”(Comitatoaziendaleeuropeo);

•the employees’ representative for health andsafety, so-called: “RLS” (Rappresentante deiLavoratoriperlaSicurezza);

•the employees’ representatives for health andsafety on the production site, so-called: “RLSP”(Rappresentante dei Lavoratori per la SicurezzadelSitoproduttivo);

•theemployees’representativeforprotectionandprevention, so-called: “RSPP” (Rappresentantedei Lavoratori per il Servizio di Protezione ePrevenzione).


xii. emPloyee benefits 1. social securityIn Italy, pensions are operated by INPS and fedby salary-based contributions paid by both theemployer and the employee. For employeeswhostartedworkingafterJanuary1,1996,theamountofsalarytobetakenintoaccountforthepurposesofcalculatingthepensioncontributions iscappedatanannuallydeterminedamountdependingoncostoflivingincreases.

A. REquIRED CONTRIBuTIONS

Receipt of pension benefits is contingent uponpayment of the social security contributionsprovidedforbythelaw.Foremployees,thepensionis linkedtotheamountofcontributionspaidasapercentageoftheemployee’sglobalsalaryduringan entire working life. In certain specific casesprovidedforbylaw(e.g.periodsofleave),inorderto allow the employee to reach the minimumpensionrequirements, thecontribution isdirectlypaid by the government. In other cases, such astheinterruptionortheterminationofwork(fromlackofworkduringone’sworkinglifeorretirementbeforeretirementage)thecontributionduebylawcanbedirectlypaidbytheemployees.

2. healthcare and insurancesProtection of workers who suffer accidents oroccupational illness is primarily controlled by theINAIL (National Institution for Insurance AgainstWorkRelatedAccidents).

A. ACCIDENTS

The right topaymentsarises incasesofaviolentaccidentthatoccursduringworkinghoursresultingindeath,permanent, total orpartialdisability, orthetemporaryinabilitytowork,whichlastslongerthanthreedays.Paymentsaremadeevenincases

wheretheworkerisatfaultandareonlyexcludedincasesofwillfulmisconductbytheworker.

B. ILLNESS

Benefits available to those suffering occupationalillnessesaregenerallyrestrictedtoaspecificlistofsuch illnesses. The Constitutional Court however,hasheldthatworkerssufferingfromalloccupationalillnesses,evenifnotoriginallylisted,areeligibletoapplyforbenefits,providedthattheoccupationalillness manifests itself within a given period oftimefromtheemployee leavingthepositionthatpurportedlycausedtheillness,andifthedisabilityresultingfromtheillnessisgreaterthan10percent.Moreover,somecollectiveagreementsalsoprovidefortheemployer’sobligationtoenterintospecificinsurance policies covering accidents, death, anddisabilitiesofitsemployees.

3. required leave

A. hOLIDAYS AND ANNuAL LEAVE

holidays: UnderItalianlaw,employeesareentitledto annual holidays. Legislative Decree 66/2003establishes that the minimum length of annualholidaysisfourweeksperyear,buttheapplicableNCBAmayprovideforalongerterm.Thefour-weekperiodmustbeused forat least twoconsecutiveweeks during the same year, if requested by theemployee, and the remainderof theweeksmustbeusedwithin18monthsoftheendoftheaccrualyear.

Except in the case of the termination ofemployment,anemployercannotreplacetherightof the employees to benefit from the minimumannual holiday entitlement with payment in lieuthereof. On theotherhand, it ispossible for theemployer to pay the indemnity in lieu only withregardtotheannualholidaysexceedingtheabove-mentionedminimumperiodoffourweeks.



annual leave: There are approximately 11 publicholidays in Italy and an additional four days thatused to be public holidays, but are nowworkingdaysonwhichworkersarepaiddoubletime.

B. MATERNITY / PATERNITY / parental leave

maternity leave: Female employees cannotworkduring the 2 months prior to the planned birthof thechild (3months in caseofdangerous jobs,listed by theMinister), and during the 3monthsfollowing the birth. Upon permission released bythe competent doctor, the maternity leave canstart1monthbeforetheplannedbirthandfinish4 months later. During the maternity leave, theemployee isentitledto80%ofherregularsalary,which is paid by the employer who then clawsback such amounts from INPS. At the endof thematernityleave,themotherhastherighttocomeback to thesame jobpositionshe leftandat thesame/betterconditions,anduntil thechild isoneyearold,entitledtoworkinthesameofficeoratleast,inthesamecity.

Paternity leave:Thefatherisentitledtopaternityleave, on the same terms and conditions as inthe case where themother is seriously mentallyinjured,andfortheresidualdurationifthemotherdiesorabandonsthechild.

Parental leave: Duringthefirst12yearsofthechild,eachparentisentitledtoaperiodofabsentfromworkof6months.Ifbothparentstaketheparentalleave,thentheyareentitledtoamaximumperiodof10monthscombined.Ifthereisonlyoneparent,he/sheisentitledtoaparentalleaveof10months.Iftheparentalleaveistakenduringthefirst6yearsof age of the child, INPS provides an indemnityequalto30%oftheregularsalaryforamaximumperiod of 6 months of parental leave, combinedbetweenbothparents.

time off: Duringthefirstyearofageofthechild,themotherisentitledto2paidhoursadaytofeedthechild(1paidhouradayiftheworkingdaylastslessthan6hours).Suchtimeoffisgrantedtothefather if: thechild is inhiscare, themotherdoesnot take them, the mother does not work, themotherisdeadorisseriouslymentallyinjured.Theaboverightsaregrantedincaseofadoptionaswell.Furtherrightsarealsoprovidedincaseofillnessof

thechildand/ordependingonthetotalincomeofthefamily.Asfromthebeginningofthepregnancyand until the child is one year old, the mothercannot be dismissed unless for: i) just cause, ii)expiry of a fixed-termemployment agreementoriii)closureofthecompany.Mutualterminationorresignationsfiledbythemotherduringmaternityleaveorfiledbyeachparentduringthefirst3yearsof the child, shall be confirmedbefore thePublicEmploymentOfficeinordertobevalid.

C. SICkNESS LEAVE AND DISABILITY leave

Incaseofsicknessanddisability, theemployee isentitled to a period of sick leave and during thistime, the employee cannot be dismissed, unlessfor just cause or closure of the company, so-called:“periododicomporto”.Thedurationofthe“periododicomporto”isestablishedbytheNCBA,which also provides the amount of remunerationdue. At the end of the leave, the employee isentitledtocomebacktothesamejobpositionhe/sheleftandonthesame/betterconditions.

4. Pensions: mandatory and tyPically Provided The Italianpension systemwas redefinedby Lawno. 335/95, which combined two different kindsof pension schemes into a single system. Thepreexisting systems were based, alternatively,dependingonthechoiceoftheemployee,ontheattainmentofacertainage(“pensionedivecchiaia”,or old-age pension) or on a minimum period ofcontributions (“pensione anticipata”, or length-of-servicepension).Theamountof the length-of-service pension was based on the remunerationpaidtotheemployeeduringhisorherlastyearofwork. The system introducedby Lawno. 335/95,which provides for only one kind of pension(“pensione di vecchiaia contributiva”), has beenfurther amended by Law no. 122/10 of July 30,2010,thatintroducedthe“floatingwindow”whichmeans that, effective as from January 1, 2011,thegovernmentwillstartpayingthepensiontoaretiredemployeeonly12monthsafterthedateonwhichsuchindividualachievedtherequirementforretirementeligibilityandactuallyelectstoretire.In2011, another reform to thepension systemwasenacted (Law No. 214/2011) that redefined the




pre-existing systems introduced by Law 335/95,providingforthefollowing:

A. fOR INDIVIDuALS wORkINg PRIOR TO JANuARY 1, 1996

“Pensione di vecchiaia” – termination ofemployment(possibilitytoworkasself-employed);attainmentofage65and7monthsforwomenor66and7monthsformen(fromJanuary1,2016);andaminimumperiodofcontributionspaidover20years.

“Pensione anticipata” –LawNo.214/2011changedthe requirement for length of contributions withthe pensions system to achieve the pensione dianzianità,providingaminimumcontributionof41yearsand10monthsforwomenand42yearsand10monthsformen.

B. fOR INDIVIDuALS whO STARTED wORk ON OR AfTER JANuARY 1, 1996

“Pensione di vecchiaia” – termination ofemployment;attainmentofage66and7monthsfor men or 65 and 7 months for women, alongwith a minimum contribution term of 20 years;or attainment of age 70 and 7 months for bothwomenandmen,alongwithaminimumeffectivecontributiontermof5years. “Pensione anticipata”–aminimumcontributionof41yearsand10months forwomanand42yearsand10months forman;or attainmentof age63and7monthsforbothwomenandmen,alongwithaminimumeffectivecontributiontermof20years.

LucaFailla,[email protected]+3902303111


LABLAWisanawardwinningItalianemploymentandlabour law boutique, which was founded in 2006.LABLAWadvisesnationalandinternationalcompanieson a wide range of complex HR management andindustrial relations issues such as employmentcontracts, executivebenefits, stockoption schemes,pensions,healthandsafetyintheworkplace,privacy,personnelmattersrelatedtomergersandacquisitions,as well as with individual dismissals, litigation,collective dismissals, downsising projects, transferof undertakings, procedures for the constitution ofEuropean Work Councils, collective bargaining andtradeunionnegotiations.

Inadditiontoadvisingclientsonlegalissues,LABLAWalso offers employment law training courses andseminarstoclients.LABLAWtrainingempowersclientswith the knowledge they require to bettermanagetheirbusinessaffairs.LABLAW’ssuccessgoeshand-in-handwiththesuccessoftheirclients.

LABLAW knows that employment and labour lawissues do not just occur Monday through Friday –9amto5pm–andsoinordertoensureacontinualpersonalised service, LABLAW is available to assistclients24hoursaday–7daysaweek–365daysayear.

This memorandum has been provided by:

LABLAW — Studio LegaleCorsoEuropa2220122–Milan,ItalyP+392303111www.lablaw.com

LaBLaW — stUdio LegaLe l&e GloBal italy


CONTACT uSFormoreinformationaboutL&EGlobal,oraninitialconsultation, please contact one of our memberfirmsorourcorporateoffice.We look forward tospeakingwithyou.

L&E GlobalAvenueLouise221B-1050,BrusselsBelgium+3226432633www.leglobal.org


http://www.lablaw.com


Thispublicationmaynotdealwitheverytopicwithinitsscopenor cover every aspect of the topicswithwhich it deals. Itisnotdesigned toprovide legalorotheradvicewith regardtoanyspecificcase.Nothingstatedinthisdocumentshouldbe treated as an authoritative statement of the lawon anyparticular aspect or in any specific case. Action should notbetakenonthisdocumentalone.Forspecificadvice,pleasecontacta specialistatoneofourmemberfirmsor thefirmthat authored this publication. The content is basedon thelawasof2017.

L&EGlobal CVBA is a civil companyunderBelgian Law thatcoordinates an alliance of independentmember firms. L&EGlobal provides no client services. Such services are solelyprovidedbythememberfirmsintheirrespectivejurisdictions.In certain circumstances, L&E Global is used as a brand orbusinessnameinrelationtoandbysomeorallofthememberfirms.

L&EGlobalCVBAanditsmemberfirmsarelegallydistinctandseparate entities. They do not have, and nothing containedherein shall be construed to place these entities in, therelationshipofparents,subsidiaries,agents,partnersorjointventures.Nomemberfirm,northefirmwhichauthoredthispublication, has any authority (actual, apparent, implied orotherwise) tobindL&EGlobalCVBAoranymemberfirm inanymannerwhatsoever.

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