employment law overview 2017 - l&e...

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EmploymEnt law ovErviEw 2017

Italy

i. GEnEral 01ii. hirinG practicEs 03iii. EmploymEnt contracts 04iv. workinG conditions 06V. Anti-DiscriminAtion LAws 08vi. social mEdia and data privacy 10vii. authorizations for forEiGn EmployEEs 11 viii. tErmination of EmploymEnt contracts 12iX. rEstrictivE covEnants 17X. riGhts of EmployEEs in casE of a transfEr oF UnDErtAKinG 18Xi. tradE unions and EmployErs associations 19Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs 21Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits 22

Table of contEnts

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2. Key Points

• ForeachindustrysectorthereisaNational CollectiveBargainingAgreement(hereinafter,also, “NCBA”)thatregulatestheemployment relationship.• Companieswithmorethan15employeescome undertheumbrellaoftheWorkers’Statute.• ItalianlabourlawsandNationalCollective BargainingAgreement’sprovisionsmayonlybe amendedbyemployersinamorefavorablewayfor theemployees.• Thecollectivedismissalprocedureshallbefollowed whenatleast5dismissalsforeconomicreasons willbeservedwithin120daysbyacompanywith morethan15employees.• Executivesareincludedinthecalculationthat triggersacollectivedismissal.• Thereisnolongeraneedtogiveareasonfor enteringintoafixed-termcontract.• Reinstatementisnolongerthesoleremedyfor unfairdismissal.

3. LegalFramework

InItaly,individualcontractsofemploymentandlabourrelationshipsaregoverned,inorderofpriority,by:

1. TheRepublicanConstitution:setsforthgeneral principlesandregulatessomeissuesconcerning employment.2. TheCivilCode:TheCivilCode,enactedin1942, regulatesemploymentandlabourmattersunder SectionIII(“Ontheemploymentrelationship”), articles2094-2134.3. LawsenactedbyParliament:Italyhasextensive employmentandlabourlegislation;theobjective hastraditionallybeentoprotectemployees.4. Regulationsissuedbyauthoritiesotherthan Parliamentandthegovernment.5. NationalCollectiveBargainingAgreements.6. Customandpractice–Thecustomsandpractices ofthepartiestoanemploymentrelationshipapply wheretheissueisnotgovernedbylegalprovisions orbytheprovisionsofacollectiveagreement. Moreover,thosecustomsandpracticesthat aremorefavourabletoemployeesprevailover legalprovisions,butdonotprevailoverindividual employmentagreements.


i. GEnEralItalianemployment lawshavealwaysbeenemployee-friendly, reflecting the principles of the ItalianConstitution.However, theglobal economicdownturnhasforcedItalianlawmakerstolookatwaystoenhanceflexibilitywithintheItalianjobmarket.

Themost recent Italian reform on labour law, the socalled Jobs Act, has granted more flexibility to theemployers through i) a “gradual” protections againstunfairdismissals,directlylinkedtothelengthofservice(forthosehiredonopen-endedemploymentcontractsafter7thMarch2015), ii) thepossibilityundercertainconditions,todowngradeemployees,iii)thepossibility,under certain conditions, to utilize for disciplinarypurposes, the content of company mobile devicesgranted to theemployees, to stimulatenewhiresandattractnewforeigninvestmentintoItaly.

Italyisgoingthroughimportantpolitical,socialandlegalchanges at themoment and employment lawyers arewitnessingfirst-handhowthis impactsbusinessesandthe Italianworkforce. Italianemployment law is still aworkinprogressandtheendproductwillhopefullybeworthyoftheprestigiouslabel:“MadeinItaly”.

1. IntroductoryParagraph

The FairWorkAct 2009 (Cth) (“FairWorkAct”) is theprimary source of employment law and regulation inAustralia,yet,thereareafewemployersandemployeeswho are not covered by the Fair Work Act. This isdiscussedatparagraph2below.

Australian governments have also put in placemodellaws toharmoniseworkhealthandsafety lawsacrossAustralia, helping to provide equal protection andstandardstoworkersineachStateandTerritory.Theselawsaimtoreducetheincidenceofworkrelateddeath,injuryandillness.Thisisdiscussedfurtheratparagraph6 below.

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FurthermoreItaly,asoneofthememberstatesoftheEuropeanUnion(EU),havingsignedtheTreatyofRomeon March 25, 1957, is subject to EU directives andregulationsandtothedecisionsoftheEuropeanCourtofJustice.

4.NewDevelopments

• Thanks to the Jobs Act (Law no. 23/2015), foremployees hired under an open-ended contract after7thMarch 2015, the so-called “employment contractwith growing protections” there is now in place adifferent set of remedies in the event of a employeesuccessinanunfairdismissalclaim.Inthemajorityofcasestheremedyisdamages,whichiscalculatedonthebasisof thedismissedemployee’slengthofservicewiththecompany.Reinstatementhasnowbecometheexceptionratherthantherule.

• As from 25th June 2015, an employer mayunilaterally change an employee’s duties and tasks tothosecorrespondingtoalowerjoblevel(notethattheemployee remains in the same job category,with thesamesalary),ifthefollowingconditionsaremet:

• There have been changes to the company’sorganizational set-up, involving the jobpositionof therelevantemployee;

• The National Collective Bargaining Agreementprovidesso;

• TherehasbeenaspecificagreementsignedbeforethePublicEmploymentOffices.

• Asof24thSeptember2015,employersareallowedto access the content of company devices given toemployees to perform their job (e.g. smart phone,personal computer, tablet), and such contentmay beusedforthepurposeofdisciplinarysanctions.

• 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

thenewlawandinanticipationoftheguidelinesfromtherelevantAuthority,alsoatEuropeanlevel.

Inthisregard,pleasenotethat,accordingtoaRulingoftheItalianCourtofCassationissuedon27thMay2015,itisnotunlawfulforanemployertocreateafakeFacebookprofile in order to uncover employees’ negligence.Accordingto theCourt, theemployer’sbehaviourwaslawful and valid because,while always respecting theemployees’dignityandfreedom,monitoringemployeesisallowedifthepurposeisnottoevaluatetheworkingperformancebut,forexample,toavoidriskofdamagetocompanyproperty.


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AccordingtoArticle8ofLaw300/1970(theLaw),priortohiringandduringtheemploymentrelationship,theemployermaynotcarryoutanychecksorinvestigations,eventhroughthirdparties,regardingtheemployees’politicalopinions,religiousbeliefs,unionmembership,oronanymatterswhichdonotstrictlyrelatetotheemployee’sprofessionalskills.

Thereasoningbehindsuchprovisionsistoprotecttheemployee’sprivacyandprohibitanyinterferencebytheemployerintheirprivatelivesandatthesametimepreventinganyinformation-gatheringinvestigationthatmaythentriggerdiscriminatoryaction.

Therefore,anysuchinvestigationisalwaysprohibited,asisanyinvestigationoffactsthatcannotbeobjectivelyusedtodemonstratetheemployee’sskills,competence,experienceandcompatibilitywiththespecificdutiestobeassignedtohim/her.

Thisrulealsoappliestocheckscarriedoutthroughsocialnetworks,whicharebecomingcommonamongHRdepartmentsandhead-hunters.

Pleaseseebelowalistofbackgroundchecksthatareallowed:

• Verificationofacademicqualificationsand credentials;• Verificationofemploymenthistory;• Verificationofpersonalreferencesidentifiedbythe applicant;• Searchofmotorvehiclerecords/validationof driver’slicense:onlyallowedifrequiredforthe jobandifthereistheconsentofthecandidate(the Companymayaskthecandidatetoshowhis drivinglicense).• Criminalrecordsearch:onlyadmissibleifrequired bythenatureoftheduties(i.e.wherethejob involveshandlingmoney)andifthereisthe consentofthecandidate;• Drug/alcoholscreening:allowedifperformedby publicmedicalcenters(notbydoctorshiredby theemployer)andonlyifcarriedoutoncandidates thataregoingtoperformhigh-riskduties,aslisted byLabourMinisterDecreeno.309/1990.


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ii. hirinG practicEs


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1. MinimumRequirements

EuropeanUnionDirectiveNo.533/91hasbeenimplementedinItalyandrequiresthatinformationonthemaintermsandconditionsofemploymentrelationshipsbeevidencedinwritingintheemploymentcontractandprovidedtotheemployeewithin30daysofhiring.Ingeneral,individualemploymentcontractsmustspecify:

• partiestotheemploymentagreement;• thestartingdateoftheemploymentandthe durationofthetrialperiod,ifany;• theexpirationdate,iftheemploymentisforafixed term(wherethesecontractsarepermittedbylaw);• thesalary,methodforcalculationofthesalary, frequencyofpayment,andanyparticulartermor conditionrelatedtothesalaryandfringebenefits;• theworkinghours;• theannualentitlementtopaidholidayleave;and• theemployee’sdutiesandtherelatedwork “category”asestablishedbytheCivilCodeunder article2095.

2. Fixed-term/Open-endedContracts

An employment contract normally has an unlimitedduration.

However, employment contractsmay be entered intoforafixed-termprovidedthatthetotalnumberoffixed-termemploymentcontractsdoesnotexceed20%oftheworkforce hired on open-ended basis (different limitscanbeprovidedbytheapplicableNCBA).

Theabovelimitof20%doesnotapplyto:i)companiesduringthelaunchofthebusiness,orthestart-upphase,ii)seasonalactivities,iii)specificTVshowsorprograms,iv)foremployeesover50,toreplaceabsentemployees.

Furthermore,afixed-termcontractofemploymentmustbeexecutedinwritingandthetermmustbeexpresslyindicated.Wherecontractsarenotexecutedinwriting,they will be considered a contract of employment ofunlimitedduration.

Currently,afixed-termcontractmaybeenteredintoforamaximumperiodof36months, includingextensions(max.5)andrenewals.Suchrenewalsmustbebetweenthesameparties,forthesamedutiesandforafurtherlimited period of time, provided that there is a gapbetween the two contracts: 10 days if the previouscontracthadadurationoflessthansixmonths;20daysif the previous contract had a duration ofmore thansix months. Where the above-mentioned periods ofinterruption are not compliedwith, the new contractwillbeconsideredasanopen-endedone.

Thecarrying-overofsuchacontractforalimitedperiodof time after the expiration of the term is allowed.However, such a graceperiodmaynot exceeda termof30or50days,dependingonthelengthofthefixedtermcontract(less/morethansixmonths,respectively).If grace period has lapsed, the employment isautomaticallyregardedasanopen-endedone.

However,theexecutionofafixed-termcontract isnotallowed:

• tosubstituteemployeesonstrike;• intheproductionunitsinwhich–withinthe previoussixmonths–employeescarryingoutthe samedutiesastheoneshiredwithfixed-term contractshavebeencollectivelydismissed(unless otherwiseagreeduponwiththeTradeUnions);• intheproductionunitsinwhichemployeescarrying outthesamedutiesastheoneshiredwithfixed- termcontractsaresuspendedfromwork;and• iftheemployerfailedtocompiletheHealthand SafetyRiskAtWorkEvaluation.

Fixed-termcontractsentered intowithexecutivesandincertainemploymentrelationshipscharacterizedbyafixedortemporaryduration(e.g.staffleasingpositionsandapprenticeships)arenotsubjecttothetypicalrulesregardingfixedtermcontracts.

iii. EmploymEnt contracts


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3. TrialPeriod

Employment contracts can provide for a trial period(“periododiprova”).

During this periodeachparty is free to terminate thecontractwithoutnoticeandwithoutthepaymentofanyindemnityinlieuofsuchnotice.

ThedurationofthetrialperiodissetbytheapplicableNCBA and varies according to different categories ofemployees(maximumdurationbeing6monthsforhighlevelemployees).

Article 2096 of the Civil Code requires that the trialperiodbewrittenintheemploymentcontractandmustbeentered intoonthefirstdayoftheemploymentatthelatest.

Failingtomeetthisrequirementrendersthetrialperiodnull and void and the employment is considered fullyeffectiveasofthebeginning.

4. NoticePeriod

Upon termination of an open-ended employmentcontract, unless the contract is terminated for “justcause” (a reasonthatdoesnotallowthecontinuationoftheemploymentrelationship)boththeemployerandtheemployeeareentitledtoanoticeperiod,thedurationofwhich varies according to theemployee’s lengthofserviceandprofessionallevelandasestablishedintheapplicableNCBA.

Incaseofterminationduetoadecisionoftheemployer,it can exempt the employee fromworking during thenoticeperiodwhilepayingacorrespondingpaymentinlieuofnotice.

Incaseofterminationduetoadecisionoftheemployee,if he/she resigns without giving the notice periodprovidedby the applicable collective agreement (withtheexceptionofresignationfor“justcause”,wherethenoticeisnotduebytheemployee)theemployerhastherighttowithholdtheamountofthepaymentinlieuofnoticefromthepaymentsthattheemployeeisentitledtoreceiveasaconsequenceof theterminationof theemploymentrelationship.


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iv. workinG conditions

1. MinimumWorkingConditions

In Italy, themost important provisions included in anemployment contract are providedby the lawandbytheapplicableNCBA.Inparticular,NCBAsetsthetermsand conditions of employment, amongst which are:categories and related job descriptions; duties andobligations;minimumwages;jobretentionrightsduringabsencesduetoillness;salaryincreasesduetolengthofservice;termination,resignation,criteriaforcalculationof the severance pay; night work; maternity leaves;holidays.

2. Salary

Salaryisusuallypaidattheendoftheworkingmonth,asestablishedinthecompanypoliciesorbytheNCBAwiththe employer deducting all applicable social securitycontributionsandwithholdingtaxes.

Italian Law explicitly provides that the salary paid toemployeesmustbestatedinapayslip(producedbytheemployerorbyathirdpartyontheemployer’sbehalf)specifyingtheperiodofservicewhichthesalaryrefersto,theamountandthevalueofanyovertime,togetherwithalltheelementsthatconstitutetheamountpaidaswellasallwithholdingsmadeinaccordancewithItalianlaw.

Moreover, Italian law provides for an annual 13thpayment, paid once a year on the occasion of theChristmas holidays that usually corresponds to onemonth’s remuneration. In addition, NCBA or evenindividualcontractsmayprovideforthepaymentonthe14thpayment,usuallypaidinJuly.

3. MaximumWorkingWeek

Themaximumlengthoftheworkingweekisestablishedbythecollectiveagreements.However,theaverageweeklyworkingtimecannotexceed48hours,inclusiveofovertime.Theaverageworkingtimemustbecalculatedoveraperiodof4months;however,theapplicableNCBAcanextendthattermforobjective,technicalororganizationalreasons.

4. Overtime

Theneedsofaparticularcompanymay,inexceptionalcircumstancesoronanoccasionalbasis,requireemployeestoworkbeyondtheir“usualworkinghours.”Overtimeisregulatedbylawandbytheapplicablecollectiveagreement.Article5ofLegislativeDecreeno.66/2003providesthatnormallytheNCBAgovernstheconditionsofovertimeworkandthat,intheabsenceofanyprovisionsofthecollectiveagreement,overtimeisonlypermittedsubjecttotheagreementbetweentheemployerandtheemployeeandforaperiodnotexceeding250hoursperannum.

Finally,thelawprovidesthatovertimeiscalculatedseparatelyandpaidbywayofanincreaseinsalarypursuanttotheNCBA,whichmayinanycasepermitthatovertimebecompensatedwithtimeoffinadditionorasanalternativetothesalaryincreasesthatmaybedue.

5.Holidays

UnderItalianlaw,employeesareentitledtoannualholidays.

LegislativeDecree66/2003establishesthattheminimumlengthofannualholidaysisfourweeksperyear,buttheapplicableNCBAmayprovidealongerterm.

Thefour-weekperiodmustbeusedforatleasttwoconsecutiveweeksduringthesameyear,ifrequestedbytheemployee,andtheremainderoftheweeksmustbeusedwithin18monthsoftheendoftheaccrualyear.

Exceptinthecaseoftheterminationofemployment,anemployercannotreplacetherightoftheemployeestobenefitfromtheminimumannualholidayentitlementwithpaymentinlieuthereof.Ontheotherhand,itispossiblefortheemployertopaytheindemnityinlieuonlywithregardtotheannualholidaysexceedingtheabove-mentionedminimumperiodoffourweeks.


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6. Employer’sObligationtoProvideaHealthyandSafeWorkplace

Thedutyoftheemployertoprovidesafeconditionsforworkers canbe found in articles32, 35, 38, 41of theItalianConstitutionandarticle2087.

When managing and operating its business, theemployerisrequiredtoadoptallmeasuresthat—inlightofthespecifictypeofworkperformed,pastexperience,and techniques used—are required to protect thepsychologicalandphysicalwellbeingoftheemployees.

The main provisions relating to health and safety intheworkplaceare contained in LegislativeDecreeNo.81/2008. This decree, as amended by subsequentlegislative decrees, has implemented the EuropeanCommunitydirectivesonworkplacesafetybasedonthefollowinggeneralprinciplesofprevention,including:

• eliminationorreductionofrisksatthesource;• updatingsafetymeasuresinrelationtothe technologicalevolution;• safetyofpsychologicalandphysicalhealthof workers;• attentiontothehealthconditionsandskillsof workersforthepurposeofjobassignment;and• surveillanceofworkerstomonitortheiradherence tosafetymeasuresanduseofpersonaland communalprotectivegearprovidedbythe employer.

Inadditiontothesegeneralprinciples,therearesomespecificdutiesthattheemployermustfulfill:

• evaluationofrisks;• identificationofprotectiveandpreventative measures;• preparationoftheplanfortheimprovementof safetyattheworkplace;and

Otherdutiesoftheemployerinclude:

• nominationofthepersonwhoisresponsibleto performthePreventionandProtectionService (insideoroutsidethecompany);• nominationoftheOfficerinchargeofthePrevention andProtectionService;• preparationofadocument,includingtheevaluation ofalltherisksforsafetyandhealthconnectedwith theactivityofthecompany,protectiveand

preventativemeasuresadoptedinlightoftherisk evaluation,andaplantoimproveworkplacesafety (thedocumentshouldbepreparedtogetherwith thePreventionandProtectionOfficer,andthe doctorincharge,wherehealthsurveillanceis mandatory);• nominationofthedoctorincharge,inthecases providedforbythedecree;• appointmentoftheemployeesinchargeoffire prevention,rescue,firstaidandmanagementof emergencies;• providingemployeeswithadequateequipmentand gearforpersonalprotection;• keepingachronologicalrecordofworkinjures detailingabsencesfromworkforatleastoneday;• instructingemployeestoabandontheworkplacein theeventofaserious,immediateandinevitable danger;and• organizationofsecurityandhygienesignage.

The employees shall be informed regarding thefollowing:safetyinstructionsandrisksderivingfromtheactivitycarriedoutbythecompany;specificrisksrelatedtotheworkplaceandpreventionmeasuresadoptedbythe company;first aid,firepreventionandevacuationprocedures;andnamesof theemployees inchargeoffireprevention,evacuationandfirstaid.

Theemployershallalsotraintheemployeesinrelationtosafetyandhealthintheworkplace.Inparticular,thetrainingshallbesufficientandadequate,updated,free,andcarriedoutduringworkingtimeincooperationwithunions.

Theemployeesshall takecareoftheirownsafetyandhealth,andofthesafetyandhealthoftheotherpersonspresentintheworkplace,bymeansof:

• followinginstructionsreceivedbytheemployer;• correctlyusingmachines,tools,workequipment, andpersonalandcommunalsafetydevices;• immediatelyinformingtheemployeraboutany deficienciesofthesafetydevices,aswellasany otherdangeroussituationofwhichtheybecome aware;• notremovingsafetydeviceswithoutauthorization; and• utilizingsanitarycontrolsrequiredbylaw.

Anyemployee’sbreachof theaboveobligationscouldresultindisciplinarysanctions.


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V. Anti-DiscriminAtion LAws

1.BriefDescriptionofAnti-DiscriminationLaws

Prohibitions against discriminationhavebeen in placesince the 1970’swhen theWorkers’ Statute (LawNo.300/1970)cameintoforce.

TheWorkers’Statuteprohibitsanykindofdiscriminationbasedon:

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

Furthermore,employersmaynot:

• makeemploymentconditionalonthefactthatthe employeeisorisnotamemberofaTradeUnionor thatheorshestopsbeingamember;or• dismissanemployee,ordiscriminateagainsthim/ herwhenassigningajob,whenchangingaplace ofwork,indisciplinaryprocedureorprejudice him/herbecauseoftheemployee’smembershipin atradeunionassociation,becauseoftheemployee’s union-relatedactivityorbecausetheemployeehas participatedinastrike.

Thesameanti-discriminationprovisionsabovementionedapplytoreligiousdiscriminationaswell.

However,accordingtoLegislativeDecreeNo.216/2003,special conditions based on religious convictionsexistingwithinreligiousorganizationscouldbeallowedifsuchconvictionsarenecessarytoperformtheworkingactivitywithintheseorganizations.

Inthecaseofoccupationalactivitieswithinchurchesorotherpublicorprivateorganizations,theethosofwhichisbasedonreligionorbelief,adifferenttreatmentbased

on a person’s religion or belief is not discriminatorywhere, by reason of the nature of the particularoccupational activities concerned or of the context inwhichtheyarecarriedout,aperson’sreligionorbeliefconstitutes a genuine and determining occupationalrequirement, is legitimate and the requirement isproportionate.

In addition, an employer is obliged to employ a fixednumber of disabled people, depending on the size ofthecompany(LawNo.68ofMarch12,1999).

2.ExtentofProtection

Several laws were recently passed, implementingEuropeanDirectivesonEqualTreatment,RacialEqualityandEmploymentFramework.Suchlawsmakeitunlawfulfor an employer to discriminate in the processes of:hiring, promoting, remuneration and termination orwithregardtoadmissiontoatrainingorapprenticeshipprogram.

Furthermore, direct and indirect discrimination areprohibited.

Direct discrimination occurswhen a person is treatedless favorably than another person in a comparablesituationononeoftheprohibitedgrounds.

Indirect discrimination occurs when an apparentlyneutral provision, criterion, practice, agreement orconductwouldputsomeoneataparticulardisadvantagecomparedwithotherpersons,ononeoftheprohibitedgrounds.

3.ProtectionsAgainstHarassment

Thesameanti-discriminationprovisionsabovementionedalsoapplytoharassment.

Harassmentisunwantedconductbasedonaprohibitedground with the purpose or effect of violating thedignity of a person and creating a hostile, degrading,humiliatingoroffensiveenvironment.


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Sexualharassmentoccurswhenunwantedconductwitha sexual connotation (expressed in physical, verbal ornon-verbalways)takesplacewiththepurposeoreffectof violating the dignity of a person and of creating ahostile,degrading,humiliatingoroffensiveenvironment.

4.Employer’sObligationtoProvideReasonableAccommodations

Therearenospecificlabourlawsputtinganobligationontheemployertoprovidereasonableaccommodationsofany kind, other than those requiredby law related tohealthandsafetyatwork.

Employers, like public offices, must provide theinfrastructureneededtoensurethatdisabledpersons/employees have access to the offices, such as stairsadapted for the disabled and/or elevators, disabledtoiletsetc.

Italianlawdoesnotobligeemployerstoprovidespecificaccommodationsforreligiouspurposesofanykind.

5.Remedies

Anemployeewhohasbeendiscriminatedagainstmaysue the employer before the Labor Court, under anordinary process or an emergency one, claiming formonetaryandnon-monetarydamages.

Thereisnostatutoryminimumormaximumamountofdamages:itisattheJudge’sdiscretion.TheLaborCourtmay order the employer to stop the discriminatoryconduct,toremovetheeffectoftheunlawfulconduct,and order a plan to avoid, within a certain period oftime,anyrepetitionofthediscriminatoryconduct.

The Equal Opportunities Commission has the powerto promote good anti-discriminatory practices. It canmonitor and, in the case of discriminatory conduct,asktheemployertoarrangeaprogramtoremovethediscrimination in order to resolve the matter. It canrepresenttheemployeeincourtandbringproceedingsagainsttheemployerincasesofcollectivediscrimination.

TheCommissionforEqualTreatmentcanissuecodesofconductandhasthepowertoaskemployerstoprovideinformationsothatitcanmonitortheequaltreatmentofmenandwomen.

The Commission for Racial Equality has the powerto support employees during a claim, investigatediscriminatory conduct, ask the employers forinformation and documents, and give advice andrecommendations.

Legislative Decree No. 198/2006 provides that anyagreement, unwelcome conductor gender-related actthattakesplacewiththepurposeoreffectofviolatingthe dignity of a person and of creating a hostile,degrading,humiliatingoroffensiveenvironmentisnullandvoidifitisinresponsetoacomplaintorlegalactionbrought by the employee with the aim of enforcingequaltreatment.

According to case law, when the perpetrator of thediscriminatory conduct is not the employer but acolleagueoftheworkerwhowasoffended,itispossiblethat this latter person may be considered liable fordamagesderivingfromthediscrimination.


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vi. social mEdia and data privacy

1.Cantheemployerrestricttheemployee’suseofInternetandsocialmediaduringworkinghours?

Withreferencetothecompanydevicesgrantedtotheemployeesforworkpurposes,theemployerisentitledtoblock internetaccess,oraccess tocertainwebsitesonlyand/orsocialnetworks,fortheentireworkingdayorduringcertaintimes.

Theemployerhasnocontroloveremployees’personaldevices. However, should the employee use his/herpersonaldeviceduringworkingtimeand/orinviolationof the relevant company policy, this may triggerdisciplinaryaction.

2.Employee’suseofsocialmediatodisparagetheemployerordivulgeconfidentialinformation

According to the specific circumstances of the casein question, employee’s utilization of social mediato disparage the employer or divulge confidentialinformation may trigger disciplinary action (evendismissal)andmayconstituteacrimeaswell.

ByRulingdated1stAugust2014,theTribunalofMilanupheld a disciplinary dismissal as valid, based on thefact that the employee posted on Facebook a pictureshowinghimandothercolleagues,alongwithoffensivecommentagainstthecompany.

AccordingtotheJudge,suchbehaviorisconsideredasclearly breaching the fundamental duty of diligence,honesty and loyalty required by the employees,therefore the disciplinary dismissal was lawful andjustified.


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TherearenospecificrulesrelatedtotheemploymentofEuropeanUnion(“EU”)citizensastheycanmoveandworkineveryEUCountrywithoutlimitation.

Ontheotherhand,limitationsareprovidedbythelawwithrespecttonon-EUcitizens.Visasanddifferentworkpermitsarenecessaryinthefollowingsituations:

• Hiringofnon-EUcitizens:theiremployment canstartonlyafteraspecificimmigrationprocedure iscompleted,whichincludescomplyingwiththe limitationoftheannualquotas.Aftertheannual quotasareestablished,anon-EUcitizenmust requestaworkvisa,assumingthattheyhavebeen offeredemploymentinItaly.• SecondmentinItalyofnon-EUcitizens:isnot subjecttoannualquotalimitationsbutshouldbe activatedonthebasisofaspecialandmore simplifiedprocedurestrictlyrelatedtothepurposes ofthesecondmentinItaly.

vii. authorizations for forEiGn EmployEEs


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viii. tErmination of EmploymEnt contracts1.GroundsforTermination

UnderItalianlaw,anyterminationofemploymentmustbe justified.Thereasons to terminateanemploymentcontractcanbedividedinthreemaincategories:

• Objectivejustifiedreasons-whicharerelatedtothe abolitionofajobpositionduetoacompany’s economicsituationregardingproduction,work organization,orproperfunctioning;• Subjectivejustifiedreasons-whichoccurwhen theemployeecommitsabreachofhis/her contractualobligationsorisguiltyofnegligencein theperformanceofhis/herduties,butthebehavior isnotsoseriousastoconstituteadismissalforjust cause;or• Justcause(“giustacausa”)–thatindicatesany seriousmisconductorbreachthatrendersthe continuationoftheemploymentimpossible, including,theft,riot,seriousinsubordination, andanyotherbehaviorthatseriouslyundermines thefiduciaryrelationshipwiththeemployer.

2.CollectiveDismissals

UnderItalianlaw,acollectivedismissaloccurswhenatleastfivedismissalsareservedinthesamebusinessunitorinmoreunitswithinthesamedistrictandinthetimeframeof120days,duetoreduction,transformation,orclosureofbusiness.

According to Law 223/1991, employers with morethan15employeesmust followa specific informationandconsultationprocedureinvolvingtheTradeUnionswithregardtocollectivedismissals.Theemployermustnotify,inwriting,thecompetentemploymentoffice,theemployees’staffrepresentatives(RSA-“rappresentanzesindacaliaziendali”orRSU - “rappresentanzesindacaliunitarie”)andtherespectiveTradeUnionsofthedecisiontoproceedwiththecollectivedismissal.Intheabsenceof the above-mentioned employee representativebodies,noticeshallbegiventothe“comparativelymorerepresentative”tradeassociations.

Thewrittennotificationshouldexplain:

• thereasonsfortheredundancy;• thetechnical,organizationalorproductionreasons whichnecessitatetheredundancy;• thenumberofemployeestobemaderedundant;• thetimetableoftheredundancyplan;• possiblemeasuresplannedfortheoccupational consequencesoftheredundancyplan;and• thecalculationsofeconomicawardsinadditionto thoseprovidedbythelaworbytheapplicable collectiveagreements.

Withinsevendaysfromthedateofthenotice’sreceipt,upon request of the Union the parties must meet(dependingonthenumberofemployeesinvolvedintheredundancy, forup to45days) todiscussandanalyzethepossibility of avoidingdismissals. If thepartiesdonotreachanagreement,thecompanymustgivewrittennotice to the competent employmentoffice regardingthe results of thenegotiations, specifying the reasonsforthenegativeoutcome.Consequently,thecompetentemployment office convenes the parties for a furthernegotiation,whichcannot,dependingonthenumberofemployeesinvolvedintheredundancy,lastlongerthan30days.

If thecompanyandtheTradeUnionsdonotreachanagreement, or if they reach an agreement before thedeadline,theemployerisallowedtoservethedismissalsby giving written notice to each of the employeesinvolved.Moreover, the employer should provide thecompetent employment offices and the Trade Unionswithawritten listof thedismissedemployees,statingtheir names, place of residence, qualifications, lengthof service, age, family dependents, and a detaileddescription of the selection criteria applied for thedismissalofeachemployee.

Theselectionoftheemployeestobedismissedshouldfollowthecriteriaprovidedbytheagreementreachedduring the negotiations or, in the event of a negativeoutcome,thecriterialaiddownbyLaw223/1991(familycircumstances; lengthof service; technical,productionor organizational requirements). Upon dismissal, all


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employees are entitled to the payment of the usualseverancepayments,includingthenoticeperiodortheindemnityinlieuthereof.

PleasenotethatbytheRulingissuedon13thFebruary2014, theEuropeanCourtof Justicehasdeclaredthatthe Italian legislationoncollectivedismissalsdoesnotmeetthelegalcriteriasetoutbyEuropeanDirectiveno.98/59/CE,becauseitdoesnotinvolveexecutives.

ThuswiththepassingofLawno.161/2014the Italianlegislaturehasforthefirsttimeprovidedthatexecutiveshave to be included in the calculation that triggers acollectivedismissal,andthatcompanieswillneedtosetupaseparatenegotiatingtablewiththeexecutives.

3.IndividualDismissals

Dismissalmustbegiveninwritingandmustdetailthereasonsonwhichitisbased.

Wheneveradismissalisduetoanemployee’sconduct(constituting either just cause or justified grounds,dependingon thegravity),anemployermust followaspecificdisciplinaryprocedure set forthbyart. 7, LawMay20,1970,no.300(thesocalled“Workers’Statute”),according to which a letter containing the allegationsmustbedeliveredto theemployeeoutlining the factsandcircumstanceswherethecompanyseesthebreachofhis/herobligationsandgiving theemployeea termofnolessthan5daysofreceiptofthelettertopresent,eitherinwritingororally,his/herpossiblejustifications,andonlyaftersuchtermhasexpiredaletterofdismissalmaybevalidlyserved.

Moreover,wheneveradismissal isbasedoneconomicreasons a mandatory pre-emptive consultation phasemustbecarriedoutbycompaniesemployingmorethan15workers,beforethedismissalbecomeseffective.

According to the ForneroReform, for thepurposesofvalidly serving the letter of dismissal, an employer isboundtoinformthelocalLabourOfficeofitsintentiontoterminatetheemployment,detailingthereasonsonwhichthedismissal isfounded,aswellasthepossiblemeasures developed to the extent of easing thereallocationoftheemployee.Thesamecommunicationneeds to be copied to the concerned employee aswell. The Labour Office should summon both partieswithin seven days, running from the date of receipt,by theadministrativeoffice,of the communicationby

the employer and the pre-emptive procedure mustbe terminated within twenty days, which may besuspendedforamaximumperiodoffifteendaysincaseof documentedunavailability of theemployee (e.g. incaseofsickness).

Thus,theoverallmaximumdurationofthepre-emptivemandatory attempt at an out of court settlement isequaltoforty-twodays(7+20+15).However,thetermsmaybeincreaseduponagreementbytheparties.

If no settlement is reached between the parties, oron expiry of the term for the procedure above, theemployer is free to serve the letter of dismissal, thatwill beeffective retrospectively, to theopeningof thepre-emptivephase(i.e.fromthecommunicationbytheemployer to the Labour Office), notwithstanding theemployee’sentitlementtothenoticeperiodorpaymentinlieuthereof.

Pleasenote that theobligationof such a pre-emptiveprocedure is not required in case of dismissal ofemployees hired after 7March 2015, through the so-called“employmentcontractwithgrowingprotections”.

Different rules apply to the dismissal of dirigenti(executives).Theexecutive’sdismissalisdeemedtobejustifiedonlyifitisasaresultof:

• objectivereasonsrelatedtotheemployer’s economic,organizationalandproduction-related needs;or• subjectivereasonsrelatedtoperformance.

In the case of particularly serious misconduct thedirigente can be dismissed for just cause. In thisevent, the dismissal is effective immediately and thedirigenteisnotentitledtoanynoticeperiod.Moreover,whenever a dismissal is due to subjective reasons, aspecificdisciplinaryproceduremustbefollowedbytheemployerbeforeservingthedismissal.

a. is sEvErancE pay rEquirEd?

Italianlawprovidesforthepaymentofadeferredformof remuneration, otherwise known as the severancepayment (“Trattamento di Fine Rapporto” or TFR).Alongwithotherminorstatutoryterminationamounts,the TFR must be paid to employees whenever anemploymentcontractisterminated,irrespectiveofthecauseoftermination.


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The amount of the TFR varies depending on theemployee’s salary and length of service (it isapproximatelyequalto8%oftheyearlygrosssalarypereachyearofemployment).

Therefore, upon termination of their employment,employeesareentitledto:

• paymentoftheTFR;• paymentofholidays/paidpermitsaccruedandnot used;• paymentof13thand14thsalaryinstallmentspro rata,ifapplicable;and• anoticeperiodifthedismissalisnotfor“justcause”. Iftheemployerexemptstheemployeefromworking duringthenoticeperiod,theemployeemustreceive acorrespondingpaymentinlieuofnotice,which isequaltothenormalsalary(plussocialsecurity contributionsthereon)thatwouldhavebeenpaid duringthenoticeperiod.

4.SeparationAgreements

Attheterminationoftheemploymentrelationship,thepartiesmayenterintoaseparationagreementprovidingamutual,fullandfinalwaiverofanyclaimsrelatedtotheemploymentrelationship.

a. is a sEparation aGrEEmEnt rEquirEd or considErEd BEst practicE?

Thepartiesarenotobliged toenter intoa separationagreement,butweconsideritasbestpracticeinordertoavoidfutureclaimsandlawsuit.

B. what arE thE standard provisions of a sEparation aGrEEmEnt?

Pleasefindbelowthestandardprovisionsofaseparationagreement:

• Full waiver from the employee of any potentialclaim of any kind related to, or connected with theemployment relationship, including its execution andits termination, and to the directorships or any otherappointmentheldforthecompany;

• Acceptanceofthewaiversbytheemployer,waivingany kind of claim against the employee, with theexceptionoffraudorgrossmisconductunknownatthetimeofthesettlement;

• Incentive to leave and/or compensation to theemployeeinreturnfortheseparationagreement;

PleasenotethatseparationagreementsmustbesignedbeforethePublicEmploymentofficeinordertobefinalandunchallengeable.

c. doEs thE aGE of thE EmployEE makE a diffErEncE?

Theageoftheemployeemayhelpthepartiesreachanagreement.

Should the employee dismissed be near retirement,thismayberelevantinnegotiatingtheamountofleaveincentive.

d. arE thErE additional provisions to considEr?

Separation agreements usually provide that theemployerpaysthelegalfees(oracontributiontowardsthem) incurred by the employee and related to thenegotiationoftheagreement.

Also,thepartiesmayproviderestrictivecovenantsandregulateminor items such as the employee’s right tokeep the phone number and/or any other companydevice,orthecompanycar.

5.Remediesforemployeeseekingtochallengewrongfultermination

Under Italian law, if an employeewere towin a casefor unfair dismissal, the remedy inmost cases wouldbe damages of between 12 and 24 months’ salary,depending on the gravity of the ‘unfairness’. In someparticular cases the remedy could be reinstatement(discrimination or in-existence of facts on which thedismissalisgrounded).

Please find below the legal framework (pre and postreform) related to the remedies that employees haveagainstwrongfuldismissals:


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iX. rEstrictivE covEnants

1.DefinitionofRestrictiveCovenants

According toarticle2125of the ItalianCivilCode, thenon-competition covenant is an agreement enteredinto between employer and employee, limiting theemployee’srighttoperformthesameactivitiesaftertheterminationoftheemploymentrelationship.

Thepartiesmayalsoagreetoasocalled“non-solicitationcovenant”withreferencetoclientsandemployees.Suchcovenants are not specifically provided by the ItalianCivilCode,andrepresentaspecificationofthegeneralbanofunfaircompetitionprovidedbyarticle2598oftheItalianCivilCode.Indeed,suchcovenantsdonotallowaformeremployeetotrytoconvincecompany’sclientsandemployeestoleavethecompanyandjoinhim/herorhis/hernewemployer.

2.TypesofRestrictiveCovenants

A. non-compEtE cLAUsEs

The non-compete covenant limits the employee’sright to keep performing the same activities after theterminationoftheemploymentrelationship.

Inordertobevalidandenforceable,thenon-competecovenanthastobe:

• inwriting;• limitedintermsofactivitiesnotallowed;• limitedintermofduration(max3yearsfor employees,andmax5yearsformanagers);• limitedintermsofgeographicalreach;• provideafaircompensation(rangingbetween20 and40%oftheannualgrosssalary,accordingto caselaw).

b. non-soLicitAtion oF cUstomErs

Thepartiesmayalsoprovideanon-solicitationcovenantrelated to the employer’s customers, which shall beentered into inwriting (generally provided alongwiththe non-compete covenant) and does not require aseparatecompensation.

c. non-soLicitAtion oF EmpLoyEEs

Thepartiesmayalsoprovideanon-solicitationcovenantrelated to the employer’s employees, which shall beentered into inwriting (generally provided alongwiththe non-compete covenant) and does not requirecompensation.

3.EnforcementofRestrictiveCovenants—processandremedies

In case of violation of a restrictive covenant, theemployer isentitledtosuetheemployeefordamagesincurredduetotheviolationandlimitpaymentsmadeforsuchcovenants.

Therestrictivecovenantmayprovideapenaltyincaseofviolation,reservingtherighttoclaimfurtherdamages,ifany.PleasenotethattheJudgemayalsoreducethepenalty,ifconsidereddisproportionate.

It isalsopossibletoasktheJudgeforaCourtordered(injunction) preventing the employee from continuingtoviolatetherestrictivecovenant.

4.UseandLimitationsofGardenLeave

Gardenleaveassuch,doesnotexistunderItalianlaw.

Indeed,anemployeehasa right towork,evenduringthe notice period. Therefore, to continue paying thesalarytotheemployeeduringthenoticeperiodwithouthim/herworkingisonlypermittedwiththeconsentoftheemployee.

Intheabsentofsuchconsent, inordertoprevent(fora limited period of time) the employee fromworkingfor other employers, the employer has two options,namelyi)agreetoanon-competecovenantorii)lettheemployeeworkhis/hernoticeperiod.


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X. riGhts of EmployEEs in casE of a transfEr of undErtakinG1.Employees’Rights

UnderItalianlaw,aTransferofUndertakingisregulatedby article 2112 of the Italian Civil Code regardingthe management of the employment relationships,and article 47 of the Lawno. 428/1990 regarding theinformationandconsultationprocesstobeimplementedbeforethetransfer.

Accordingtoarticle2112oftheItalianCivilCode:

• Theemploymentrelationshipsoftheselling company’semployeescarryonwiththebuyer company,onthesameconditions.• Theemployeesaretransferredautomatically.

Howevertheymaychallengethetransferif,forinstance,theywerenotpartoftheundertakingtransferred;

• Thetransferofundertakingitselfdoesnotrepresent areasontodismissemployees;• Theemployeestransferredkeepalltherightsthey haveaccruedwiththesellingcompany;• Shouldtheemploymentrelationshipofthe transferredemployeesbesubject,within3months followingthetransfer,tosignificantchanges becauseofthetransferofundertaking,the employeesmayresignforjustcause.Inthiscase, theemployeesmayclaimindemnityinlieuof notice.

Please note that specific further provisions may beprovidedbytherelevantNationalCollectiveBargainingAgreement applied/applicable to the employmentrelationship.

Formanagers(dirigenti)asimilarprotectionisprovidedbytheapplicablecollectiveagreement.

2.RequirementsforPredecessorandSuccessorParties

Asperbuyerandsellercompanies’obligations,pleasenotethatarticle2112oftheItalianCivilCodeprovidesthatsellerandbuyercompaniesarejointlyandseverallyliable for all the credits accrued by the transferredemployees with the selling company at the momentof the transfer, and that the buying company shallapply terms and conditions provided by the NationalCollectiveBargainingAgreementappliedbythesellingcompany,unlessreplacedbymorefavorabletermsandconditions.

Also,incaseoftransferofundertakingwithincompanieswithmorethan15employees,article47oftheLawno.428/1990 obliges both seller and buyer companies toimplementaUnionprocedurebeforethetransfer.


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Xi. tradE unions and EmployErs associations1.BriefDescriptionofEmployees’andEmployers’Organizations

Ingeneral,employeesandemployersorganizationsarestructuredasprivateassociationsgovernedbyarticles36-38oftheCivilCode.

In Italy, unions are primarily organized by businesssector. All workers involved in a particular industrybelong to the sameunion regardless of the nature oftheirparticularjoboroccupationalqualifications.

Employees’ Organizations

Unionsareeither independentorassociatedwithoneof the three union confederations. The three unionconfederations have differing ideological and politicalorientations:

1) TheItalianGeneralConfederationofLabor(CGIL)is left-wing-inspired;2) TheItalianConfederationofTradeUnions(CISL)is center-inspired;3) TheItalianLaborUnion(UIL)isleft-wingwitha smallcenter-inspiredcomponent.

Themost prominent exceptions to this confederationstructure are the National Federation of Managersin Industrial Enterprises (FNDAI) and the NationalFederation of Managers of Commercial and RelatedServicesEnterprises(ManagerItalia).

Such nationwide structure has also been adopted byvariousassociationsrepresentingmid-levelmanagementand by the independent unions, sometimes called“autonomous unions” (namely, those that do notbelongtooneofthethreemajorunionconfederations,describedabove).

Employers’ Associations

Employersarealsoorganizedintounionsorassociations.These are established as private associations that aregrouped into confederations according to the type ofenterpriserepresented:

1) Confindustriarepresentsmanufacturers;2) Confcommerciorepresentstradeandcommerce employers;3) Confagricolturarepresentsagriculturalemployers.

These confederations are composed of the variousemployer associations, each representing a specificindustry.

2.RightsandImportanceofTradeUnions

UnionsarenotrecognizedbytheItalianStateasentitieswith a legal personality and are free to regulate theirinternalactivitiesastheydeemappropriate.

Legally, NCBA only bind individuals who are actuallymembers of the union that is a signatory to theagreement.

Like all private law contracts, only the signatories areboundand,therefore,onlythoseemployersandworkerswhohavespecificallygivenamandatetoanemployers’associationorauniontorepresentthem,maybenefitfrom the collective agreement concluded on theirbehalf.Althoughthisisthelegalrule,inpractice,oncea collective agreement is concluded, even non-unionmemberstypicallyacceptitsterms.

Since collective bargaining is subject to private law,collective agreements are regulated by the lawsapplicabletoprivatecontractsingeneral.

3.TypesofRepresentation

TheWorkers’Statutegrantsalltheemployeestherightto formorbecomemembersofunionsaswell as therighttoperformunion-relatedactivities.

Article19oftheWorkers’Statutestatesthattheworkcouncils (“Rappresentanze Sindacali Aziendali” (RSA)and “Rappresentanze Sindacali Unitarie” (RSU)) maybe formed through the initiative of the employees ineveryplantwithmorethan15workerswithintheTrade


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Union’s associations that have signed the collectiveagreementappliedinthecompany.

Employee union representatives are granted somerights,suchastherighttohavepaidandunpaidleaveforperformingunion-relatedactivities;therighttoavoidbeingtransferredfromoneplaceofworktoanother,andcannotbedismissedwithouthavingpreviouslyobtainedtheconsentoftheterritorialTradeUnionsassociation.

4.NumberofRepresentatives

There isno limit to thenumberof representatives fortheRSA.

In the case of an RSUpresence, for each union thereshallbe:

• inunitsemployingupto200workers,1union representative;• inunitsemployingfrom201to3,000workers,1 unionrepresentativeforeach300workersor fractionthereof;and• inunitsemployingover3,000workers,1union representativeforeach500workersorfraction thereof,inadditiontotheminimumnumberof representativesprovidedforunder(2)above.

5.AppointmentofRepresentatives

The terms and conditions of the nomination of therepresentativesaredifferentforRSAandRSU.

RSA representatives are nominated directly by theemployees who participate in Union representations,and signed the collective agreement applied by theemployer.Noformalitiesandlimitsareprovidedbylawwithrespecttotheirnomination.

Ontheotherhand,RSUrepresentativesarenominatedupon the initiativeof theUnion’s representations andtheir nominations followa formal election. 2/3of theRSU are nominated by all the employees and 1/3 bytheUnion’srepresentatives.Thedateandplaceoftheelectionmustbenotifiedtotheemployeesnolaterthan8daysbeforetheelection.

6.TasksandObligationsofRepresentatives

Therepresentativesareentitledtocarryoutanytypicalunionization activity, such as distributing propagandaandpromotionoftheunions.Inparticular,wheretherearemorethan200workersatanygivenplantorunit,the employer is required to provide space, free ofchargeandexclusivelyfortheuseoftheunion,withinthe workplace or nearby, for holding meetings andconducting other union business. Where there arefewerworkers,spacemustbemadeavailableforthesepurposesupontheunion’srequest.Plantorunitunionrepresentativesalsohavetherighttoaffix,inproperlydesignatedplaces,unionpublicationsand informationregarding the union, its activities, andworkers’ rightsandinterests.

7.Employees’RepresentationinManagement

Italian law does not contain any specific provisionsallowing employees and/or their representatives toparticipateinthemanagementofthecompany.


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Pleasefindbelowothertypesofemployeerepresentativebodies:

• CompanyEuropeanCommittee,providedwithin theEuropeancompanies,so-called:“CAE” (Comitatoaziendaleeuropeo);• Theemployees’representativeforhealthand safety,so-called:“RLS”(Rappresentantedei LavoratoriperlaSicurezza);• Theemployees’representativeforhealthand safetyontheproductionsite,so-called:“RLSP” (RappresentantedeiLavoratoriperlaSicurezzadel Sitoproduttivo);• Theemployees’representativeforprotectionand prevention,so-called:“RSPP”(Rappresentantedei LavoratoriperilServiziodiProtezionee Prevenzione).

Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs


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1. LegalFramework

InItaly,pensionsareoperatedbyINPSandfedbysalary-basedcontributionspaidbyboththeemployerandtheemployee. For employees who started working afterJanuary1,1996,theamountofsalarytobetakenintoaccount for the purposes of calculating the pensioncontributions is capped at an annually determinedamountdependingoncostoflivingincreases.

2. RequiredContributions

Receiptofpensionbenefitsiscontingentuponpaymentofthesocialsecuritycontributionsprovidedforbythelaw.Foremployees,thepensionislinkedtotheamountofcontributionspaidasapercentageoftheemployee’sglobalsalaryduringanentireworkinglife.

Incertainspecificcasesprovidedforbylaw(e.g.periodsof leave), inordertoallowtheemployeetoreachtheminimum pension requirements, the contribution isdirectlypaidbythegovernment.Inothercases,suchasthe interruptionortheterminationofwork(fromlackofworkduringone’sworking lifeorretirementbeforeretirement age) the contribution due by law can bedirectlypaidbytheemployees.

3.Insurances

Protection of workers who suffer accidents oroccupationalillnessisprimarilycontrolledbytheINAIL(NationalInstitutionforInsuranceAgainstWorkRelatedAccidents).

accidEntsTherighttopaymentsarisesincasesofaviolentaccidentthat occurs during working hours resulting in death,permanent,totalorpartialdisability,orthetemporaryinabilitytowork,whichlastslongerthanthreedays.

Paymentsaremadeevenincaseswheretheworkerisatfaultandareonlyexcludedincasesofwillfulmisconductbytheworker.

illnEssBenefits available to those suffering occupationalillnessesaregenerallyrestrictedtoaspecificlistofsuchillnesses.

The Constitutional Court however, has held thatworkers suffering fromall occupational illnesses, evenifnotoriginallylisted,areeligibletoapplyforbenefits,provided that the occupational illnessmanifests itselfwithinagivenperiodoftimefromtheemployeeleavingthepositionthatpurportedlycausedtheillness,andifthedisability resulting from the illness is greater than10percent.

Moreover,somecollectiveagreementsalsoprovidefortheemployer’sobligationtoenterintospecificinsurancepoliciescoveringaccidents,death,anddisabilitiesofitsemployees.

4. RequiredMaternity/Sickness/Disability/AnnualLeaves

matErnity lEavEFemale employees cannot work during the 2 monthspriortotheplannedbirthofthechild(3monthsincaseof dangerous jobs, listed by theMinister), and duringthe3monthsfollowingthebirth.

Uponpermissionreleasedbythecompetentdoctor,thematernity leavecanstart1monthbefore theplannedbirthandfinish4monthslater.

Duringthematernityleave,theemployeeisentitledto80%ofherregularsalary,whichispaidbytheemployerwhothenclawsbacksuchamountsfromINPS.

Attheendofthematernityleave,themotherhastherighttocomebacktothesamejobpositionsheleftandatthesame/betterconditions,anduntilthechildisoneyearold,entitledtoworkinthesameofficeoratleast,inthesamecity.

Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits


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patErnity lEavEThe father is entitled to paternity leave, on the sameterms and conditions abovementioned in the casewherethemotherisseriouslymentallyinjured,andfortheresidualdurationifthemotherdiesorabandonsthechild.

parEntal lEavEDuring the first 12 years of the child, each parent isentitledtoaperiodofabsentfromworkof6months.If bothparents take theparental leave, then they areentitledtoamaximumperiodof10monthscombined.If there is only one parent, he/she is entitled to aparental leave of 10 months. If the parental leave istakenduringthefirst6yearsofageof thechild, INPSprovidesanindemnityequalto30%oftheregularsalaryfor amaximumperiodof 6monthsof parental leave,combinedbetweenbothparents.

timE offDuringthefirstyearofageofthechild,themother isentitledto2paidhoursadaytofeedthechild(1paidhouraday if theworkingday lasts less than6hours).Suchtimeoffisgrantedtothefatherif:thechildisinhiscare,themotherdoesnottakethem,themotherdoesnotwork, themother is deador is seriouslymentallyinjured.

The above rights are granted in case of adoption aswell.Furtherrightsarealsoprovided incaseof illnessof the child and/or depending on the total incomeofthefamily.

As from thebeginningof thepregnancyanduntil thechild isoneyearold, themothercannotbedismissedunless for: i) just cause, ii) expiry of a fixed-termemploymentagreementoriii)closureofthecompany.

Mutualterminationorresignationsfiledbythemotherduringmaternity leave or filed by each parent duringthefirst3yearsofthechild,shallbeconfirmedbeforethePublicEmploymentOfficeinordertobevalid.

sicknEss/disaBilityIncaseofsickness/disability,theemployeeisentitledtoaperiodofsickleaveduringwhichhe/sheisentitledtoreceivehis/hersalary,paidbytheemployerwhothenclawsitbackfromINPS.

Duringsuchperiodtheemployeecannotbedismissed,unless for just cause or closure of the company, so-called:“periododicomporto”.

The duration of the “periodo di comporto” isestablishedbytheNCBA,whoalsoprovidetheamountofremunerationdue.

Attheendofthesickleavetheemployeeisentitledtocomebacktothesamejobpositionhe/sheleftandonthesame/betterconditions.

annual lEavEsThereareapproximately11publicholidaysinItalyandanadditionalfourdaysthatusedtobepublicholidays,but are nowworking days onwhichworkers are paiddoubletime.

5.MandatoryandTypicallyProvidedPensions

The Italian pension systemwas redefined by Law no.335/95,whichcombinedtwodifferentkindsofpensionschemes intoa single system.Thepreexisting systemswere based, alternatively, depending on the choiceof the employee, on the attainment of a certain age(“pensione di vecchiaia”, or old-age pension) or on aminimumperiodofcontributions(“pensioneanticipata”,orlength-of-servicepension).Theamountofthelength-of-servicepensionwasbasedontheremunerationpaidtotheemployeeduringhisorherlastyearofwork.

The system introduced by Law no. 335/95, whichprovides for only one kind of pension (“pensione divecchiaiacontributiva”),hasbeenfurtheramendedbyLaw no. 122/10 of July 30, 2010, that introduced the“floatingwindow”whichmeansthat,effectiveasfromJanuary1, 2011, thegovernmentwill startpaying thepensiontoaretiredemployeeonly12monthsafterthedateonwhichsuchindividualachievedtherequirementforretirementeligibilityandactuallyelectstoretire.

The pension systemwas oncemore reformed by LawNo.214ofDecember22,2011(LawNo.214/2011),thatredefined the pre-existing systems introduced by Law335/95,asdetailedbelow.

• For individuals working prior to January 1, 1996

“pEnsionE di vEcchiaia”:• terminationofemployment(possibilitytoworkas self-employed);• attainmentofage65and7monthsforwomenor66 and7monthsformen(fromJanuary1,2016);and• aminimumperiodofcontributionspaidover20 years.

“pEnsionE anticipata”:

LawNo.214/2011changedtherequirementforlengthofcontributionswiththepensionssystemtoachievethepensionedianzianità,providingaminimumcontributionof41yearsand10monthsforwomanand42yearsand10monthsforman

• For individuals who started work on or after January 1, 1996

“pEnsionE di vEcchiaia”:

• terminationofemployment;• attainmentofage66and7monthsformenor 65and7monthsforwomen,alongwithaminimum contributiontermof20years;or• attainmentofage70and7monthsforbothwomen andmen,alongwithaminimumeffective contributiontermof5years.

“pEnsionE anticipata”:

• aminimumcontributionof41yearsand10 monthsforwomanand42yearsand10monthsfor man;or• attainmentofage63and7monthsforbothwomen andmen,alongwithaminimumeffective contributiontermof20years.


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LABLAW is an awardwinning Italian employment andlaborlawboutique,whichwasfoundedin2006.LABLAWadvisesnationalandinternationalcompaniesonawiderangeofcomplexHRmanagementandindustrialrelationsissuessuchasemploymentcontracts,executivebenefits,stock option schemes, pensions, health and safety inthe workplace, privacy, personnel matters related tomergers and acquisitions, as well as with individualdismissals, litigation, collective dismissals, downsizingprojects, transfer of undertakings, procedures for theconstitution of European Work Councils, collectivebargainingandtradeunionnegotiations.

Inadditiontoadvisingclientson legal issues,LABLAWalso offers employment law training courses andseminarstoclients.LABLAWtrainingempowersclientswiththeknowledgetheyrequiretobettermanagetheirbusiness affairs. LABLAW’s success goes hand in handwiththesuccessoftheirclients.

LABLAWknowsthatemploymentand labor law issuesdonotjustoccurMondaythroughFriday–9amto5pm– and so in order to ensure a continual personalizedservice,LABLAWisavailabletoassistclients24hoursaday–7daysaweek–365daysayear.

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