Employer of Record Italy

Italy stands out as one of Europe’s most dynamic markets, offering immense opportunities for businesses seeking to expand or access a pool of highly educated and specialized talent. However, navigating Italy’s intricate labor laws, collective bargaining agreements, and strict tax regulations can pose significant challenges—particularly for international companies unfamiliar with the local legal framework. To address these complexities, Bizky provides a comprehensive Employer of Record (EOR) solution in Italy, enabling organizations to hire employees without establishing a local legal entity. This ensures full compliance with Italian employment law, tax obligations, and social security requirements—all while allowing companies to focus on growth and strategic objectives.

In this article, we’ll explore how Bizky’s EOR service streamlines hiring in Italy, from managing employment contracts and onboarding to payroll administration, benefits management, and intellectual property protection. Whether your company aims to hire long-term staff, temporary workers, or independent contractors, Bizky’s EOR solution offers a compliant and efficient pathway to building your team in Italy—empowering your business to operate confidently in one of Europe’s most attractive markets.

An Employer of Record (EOR) is an ideal solution for companies looking to hire employees in Italy without the need to establish a local subsidiary. Italy’s labor market is highly regulated, with complex laws governing employment contracts, working hours, collective agreements (Contratti Collettivi Nazionali di Lavoro – CCNL), and mandatory employee benefits. For foreign businesses, navigating this legal landscape can be challenging. By partnering with an EOR, companies can ensure full compliance with Italian employment and tax laws while focusing on their core operations.

An EOR takes on all administrative and legal responsibilities related to employment, including drafting compliant contracts, processing payroll, handling tax withholdings, managing social security contributions (INPS), and ensuring compliance with health insurance obligations (INAIL). This arrangement guarantees that employees in Italy receive all mandatory entitlements—such as paid leave, severance contributions (TFR), and healthcare coverage—while minimizing the employer’s risk of non-compliance.

Hiring through an EOR in Italy simplifies expansion for companies unfamiliar with local regulations. Italian labor laws stipulate detailed rules regarding working hours, overtime, and rest periods. For example, employees may not exceed 48 hours per week on average (including overtime) over a four-month period. The EOR ensures all employment contracts adhere to these requirements and that workers are compensated correctly according to both Italian law and relevant national collective agreements.

By partnering with an EOR, businesses gain a flexible and cost-effective way to hire employees in Italy—whether to test the market, manage short-term projects, or build a remote workforce. The EOR mitigates compliance risks, handles administrative complexity, and allows companies to scale their Italian operations quickly while maintaining full legal compliance.

Italian labor law provides employees with a comprehensive set of rights and entitlements designed to protect workers and promote a healthy work-life balance. When hiring through an Employer of Record (EOR), companies can be confident that all statutory benefits are properly managed and in full compliance with Italian labor standards.

Entitlement Explanation
Weekly rest period Employees are entitled to at least one full day of rest every seven days, typically on Sunday, unless specific sectors require alternative schedules.
Working hours & overtime Standard working hours in Italy are 40 hours per week, with a maximum average of 48 hours (including overtime) calculated over four months. Overtime is usually paid at 125% of the base salary for the first two hours and 150% thereafter, depending on the applicable CCNL.
Annual leave entitlement Employees are entitled to a minimum of 4 weeks (20 working days) of paid vacation per year, with many collective agreements offering additional days based on seniority or industry. Unused leave must generally be taken within 18 months.
Public holidays Italy observes 12 national public holidays annually, including New Year’s Day, Easter Monday, Liberation Day (April 25), and Christmas Day. Local holidays may also apply depending on the region.
Maternity & paternity leave Female employees are entitled to 5 months of fully paid maternity leave (2 months before and 3 after childbirth). Fathers receive 10 days of paid paternity leave, plus optional parental leave shared between both parents for up to 6 months at 30% pay.
Sick leave Employees are entitled to paid sick leave certified by a doctor. Employers typically cover the first 3 days, with social security (INPS) paying part of the remaining period, depending on length of service and collective agreement.
Severance pay (TFR) All employees accrue a mandatory severance payment (Trattamento di Fine Rapporto) equal to roughly one month’s salary for each year of service, payable at termination or retirement.
Health insurance All employees are covered by Italy’s national health service (Servizio Sanitario Nazionale – SSN). Employers contribute to this through INPS and INAIL payments, ensuring access to medical care and workplace accident protection.
Anti-discrimination & equal treatment Italian law prohibits discrimination based on gender, age, disability, religion, race, or political opinion. Employees have the right to equal pay and treatment, enforced by national labor courts.

Italy’s labor laws provide several types of employment contracts, each designed to suit different business needs and employment situations. Understanding these contract types is essential for companies looking to hire in Italy, as the correct classification ensures compliance with national labor laws and collective bargaining agreements (CCNL).

The most common and secure form of employment is the permanent employment contract (Contratto a Tempo Indeterminato). This type of contract offers long-term job stability and includes full access to statutory benefits such as social security, health insurance, severance pay (TFR), and paid leave. Permanent contracts can only be terminated for just cause or with proper notice, and dismissals must follow specific legal procedures. Employers are also required to respect notice periods and provide valid justification for termination to avoid potential legal disputes.

For companies seeking greater flexibility, Italy also allows fixed-term contracts (Contratto a Tempo Determinato). These contracts are suitable for temporary or project-based work and may last up to 12 months, extendable to 24 months under certain conditions (such as seasonal work or specific project needs). Employers may renew fixed-term contracts up to four times before they automatically convert into permanent employment. The same rights and protections generally apply as with permanent contracts, including entitlement to leave, social security, and health insurance.

Another increasingly popular arrangement in Italy is the freelance or self-employed contract (Contratto di Collaborazione o Partita IVA), where professionals operate as independent contractors rather than formal employees. This type of contract is particularly common in the technology, consulting, and creative industries. It offers greater flexibility for both parties but also shifts tax and social contribution responsibilities to the contractor. Importantly, companies must ensure that such arrangements are genuine and not used to disguise an employment relationship, as misclassification can lead to legal penalties.

An Employer of Record (EOR) can help companies determine the most suitable contract type for each role, ensuring full compliance with Italian employment laws and collective agreements. The EOR drafts, manages, and maintains all employment contracts in accordance with legal standards, protecting both the employer and employee. This expert support helps foreign businesses avoid costly compliance errors and ensures that workers are properly classified, compensated, and protected under Italian law.

Whether your company plans to hire long-term employees, short-term staff, or independent professionals, understanding the different contract types in Italy is key to building a compliant and successful workforce.

Employee onboarding in Italy—especially when managed through an Employer of Record (EOR)—offers a seamless and compliant process for integrating new hires while adhering to Italy’s complex employment laws and administrative requirements. The onboarding phase in Italy involves several critical steps related to contract execution, tax and social security registration, and compliance with labor and health regulations.

One of the first and most important steps is drafting a compliant employment contract. Under Italian labor law, every employee must receive a written contract specifying key terms such as job role, working hours, compensation, benefits, and the applicable CCNL (collective bargaining agreement). This contract must also clearly define the type of employment—permanent, fixed-term, or freelance—and outline notice periods and termination conditions. An EOR ensures that all contracts are legally sound, bilingual when necessary, and aligned with the correct industry standards.

Next comes tax and social security registration. Employees in Italy must be registered with the Italian Social Security Institute (INPS) and the National Institute for Insurance against Accidents at Work (INAIL) before they start working. These registrations ensure that employees receive full access to pension benefits, health insurance, maternity/paternity coverage, and workplace accident protection. The EOR handles all necessary filings and documentation, ensuring that contributions are made accurately and on time.

Another essential step in onboarding is compliance with Italy’s strict labor and data protection laws. Employers must ensure that new hires are informed about their rights under the General Data Protection Regulation (GDPR) and that all personal data is securely managed. In addition, Italy’s labor code requires employers to conduct health and safety training and to register employees with an occupational physician (medico competente) when applicable. The EOR coordinates these procedures and ensures compliance with all mandatory safety regulations.

Finally, the EOR supports smooth payroll setup and employee orientation. Payroll in Italy involves multiple components—base salary, bonuses, social contributions, and regional tax adjustments—so accurate configuration from the start is essential. By managing payroll setup, benefits enrollment, and communication with employees, the EOR ensures a stress-free onboarding process for both the employer and the employee.

With Bizky’s EOR service, businesses hiring in Italy can focus on integrating new talent into their teams, while all administrative and legal obligations are handled efficiently and in full compliance with Italian law.

Managing payroll in Italy can be complex, as it involves navigating a multi-layered system of income taxes, social security contributions, and mandatory benefits governed by both national and regional regulations. Employers operating in Italy—whether directly or through an Employer of Record (EOR)—must ensure full compliance with these obligations to avoid penalties and maintain smooth business operations.

One of the main components of payroll in Italy is personal income tax (Imposta sul Reddito delle Persone Fisiche, IRPEF). The Italian tax system is progressive, with rates applied at national and regional levels. As of 2025, the national IRPEF rates are:

In addition to the national IRPEF, employees are also subject to regional (0.7–3.3%) and municipal (0–0.8%) surcharges, which vary depending on the employee’s place of residence. The EOR ensures accurate calculation and timely withholding of all applicable taxes.

Another major element of payroll in Italy is social security contributions. Both the employer and employee contribute to Italy’s national welfare system through INPS (Istituto Nazionale della Previdenza Sociale). Employer contributions typically range between 30% and 35% of an employee’s gross salary, while employee contributions range from 9% to 10%. These contributions cover pensions, unemployment insurance, maternity/paternity benefits, and family allowances.

In addition, employers are required to contribute to INAIL (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro), which provides insurance coverage for workplace injuries and occupational diseases. INAIL rates vary by industry risk category but usually range from 0.4% to 1.0% of an employee’s salary.

Beyond mandatory taxes and contributions, many Italian companies offer supplementary benefits to attract and retain top talent. These may include:

• Meal vouchers (buoni pasto), typically valued between €6–€8 per working day.

• Private health insurance, complementing the public healthcare system.

• Company cars or travel allowances for employees in managerial roles.

• Additional pension contributions to private pension funds (fondi pensione).

• Performance-based bonuses, which may benefit from reduced taxation if tied to productivity goals.

The EOR handles every aspect of payroll management, from calculating gross-to-net salaries and managing tax withholdings to ensuring compliance with Italian reporting standards. This comprehensive approach reduces administrative complexity and ensures that all payments are made accurately and on schedule.

By leveraging Bizky’s EOR payroll services, businesses can confidently manage employment costs in Italy—ensuring compliance, financial accuracy, and competitive compensation packages that align with both legal requirements and market standards.

Italy has one of the most comprehensive frameworks in Europe for protecting employee rights, ensuring fairness, equality, and security in the workplace. The Italian Labour Code (Statuto dei Lavoratori), along with various collective bargaining agreements (CCNLs), outlines the obligations employers must meet and the rights guaranteed to all workers. For international companies, partnering with an Employer of Record (EOR) helps ensure full compliance with these standards while avoiding the risk of legal disputes.

One of the cornerstones of Italian labor law is protection against discrimination. Employees are legally protected from any form of unequal treatment based on gender, age, disability, ethnicity, religion, political opinion, or sexual orientation. Employers must provide equal opportunities in recruitment, promotion, pay, and termination. Any employee who experiences discrimination has the right to file a complaint with the labor inspectorate or pursue legal action in the labor courts (Tribunale del Lavoro).

Another critical area of employee protection is protection from unfair dismissal. Terminating an employment relationship in Italy requires just cause (giusta causa) or a justified reason (giustificato motivo), which must be clearly documented and communicated to the employee. Depending on the circumstances, employees may be entitled to compensation, reinstatement, or both if a dismissal is found to be unlawful. The EOR ensures that all termination procedures comply with Italian law, including the correct notice periods and severance payments.

Italian employees also enjoy strong protections for health and safety. Employers are required to provide a safe working environment that complies with national health and safety standards under Legislative Decree 81/2008. This includes conducting regular risk assessments, providing personal protective equipment, and organizing mandatory safety training. The EOR oversees compliance with these regulations and ensures that all safety requirements are met, regardless of whether employees work on-site or remotely.

Additionally, Italian labor law guarantees the right to paid leave and rest. Employees are entitled to at least four weeks of paid annual leave, along with public holidays, sick leave, and maternity or paternity leave. The EOR ensures that these entitlements are correctly tracked and managed through compliant payroll systems.

Finally, Italy’s data protection laws—aligned with the EU’s General Data Protection Regulation (GDPR)—require employers to handle employee information securely and transparently. The EOR manages data in compliance with GDPR standards, safeguarding both employee privacy and company integrity.

By partnering with an Employer of Record, businesses can ensure that all employee rights are upheld while minimizing compliance risks. The EOR acts as the legal employer, handling all HR, payroll, and compliance matters, allowing companies to maintain a positive, lawful, and ethical working environment in Italy.

Italian labor law provides generous leave entitlements designed to support employees’ well-being and work-life balance. These rights are guaranteed under national legislation and further detailed in industry-specific collective agreements (CCNL). By managing these obligations through an Employer of Record (EOR), companies can ensure that all leave policies are properly applied and fully compliant with Italian employment regulations.

Annual Leave:
Employees in Italy are entitled to a minimum of 4 weeks (20 working days) of paid annual leave per year. Many CCNLs extend this entitlement to 25 or even 30 days, depending on seniority or industry standards. Employers must allow workers to take at least two consecutive weeks of vacation during the year, and unused leave must generally be taken within 18 months of accrual. The EOR ensures that all accrued leave is accurately recorded and managed in compliance with local laws.

Public Holidays:
Italy observes 12 national public holidays, such as New Year’s Day, Easter Monday, Liberation Day (April 25), Republic Day (June 2), and Christmas Day. Additionally, each city or region celebrates a local patron saint holiday, which is also a paid day off for employees working in that area.

Sick Leave:
Employees are entitled to paid sick leave when supported by a doctor’s certificate (certificato medico). Employers generally cover the first three days of sickness, after which Italy’s national social security agency (INPS) compensates the employee for the remaining period, usually at 50–66% of regular pay depending on length of service and collective agreement. The EOR coordinates all documentation, ensuring compliance and timely payments.

Maternity and Paternity Leave:
Female employees are entitled to five months of fully paid maternity leave—typically two months before and three after childbirth. Fathers are entitled to 10 days of paid paternity leave, which must be taken within five months of the child’s birth. After maternity leave, parents may also take shared parental leave (congedo parentale) of up to six months, compensated at 30% of regular salary. These benefits are coordinated through INPS, and the EOR ensures accurate filings and benefit management.

Other Leave Entitlements:
Employees may also be entitled to family care leave (up to two years to assist a disabled relative under Law 104/1992), marriage leave (15 days), and education or training leave for professional development. Collective agreements may offer additional benefits, such as paid days for volunteering or personal emergencies.

By using an EOR, companies can seamlessly manage all types of employee leave in Italy—from vacation accrual and sick pay to parental and special leave—ensuring full compliance with local law and collective agreements while maintaining accurate payroll reporting.

Ending an employment relationship in Italy requires careful compliance with local labor laws, which strongly protect employees from unfair or unjustified dismissal. Whether a company ends a contract for organizational, performance-related, or disciplinary reasons, specific procedures must be followed. By working with an Employer of Record (EOR), businesses can ensure full compliance with these procedures, minimizing the risk of legal disputes and financial penalties.

Notice Periods:
Italian law mandates minimum notice periods based on the employee’s job category, length of service, and the applicable collective agreement (CCNL). Generally:

• Employees with less than 5 years of service must receive at least 15–30 days’ notice,

• Those with 5–10 years of service are entitled to 45 days’ notice,

• Employees with over 10 years of service may receive 60–90 days’ notice.
  These timeframes can vary depending on the role (e.g., managerial vs. non-managerial) and the CCNL. An EOR ensures that the correct notice period and related payments are always applied.

Justified Reasons for Termination:
Employers in Italy may only terminate an employment contract for just cause (giusta causa) or justified reason (giustificato motivo).

• Just cause involves serious misconduct or breach of trust, allowing for immediate dismissal without notice.

• Justified reason includes either subjective causes (poor performance or repeated negligence) or objective causes (organizational or economic reasons).
  All dismissals must be documented and communicated in writing. The EOR manages the process to ensure that all necessary justification and documentation are properly handled.

Severance Pay (Trattamento di Fine Rapporto – TFR):
Every employee in Italy accrues severance pay, known as TFR, equal to approximately one month’s salary for each year of service. This amount is paid upon termination, regardless of the reason for leaving (resignation, dismissal, or retirement). The EOR ensures accurate calculation and timely disbursement of TFR to meet all legal obligations.

Unlawful Dismissal Protections:
If a termination is found to be unjustified or discriminatory, the employee may be entitled to reinstatement or financial compensation, depending on company size and the terms of the CCNL. Employees can challenge their dismissal in a labor court (Tribunale del Lavoro), and the burden of proof lies primarily with the employer. An EOR significantly reduces this risk by ensuring every dismissal follows proper legal and procedural steps.

Resignation and Mutual Termination:
Employees may resign at any time by providing written notice in accordance with their contract. Alternatively, an employment relationship can be ended through mutual agreement, often accompanied by negotiated compensation or benefits. The EOR facilitates this process and ensures compliance with notification requirements and payment of all outstanding entitlements.

By managing the end-of-employment process through an EOR, companies can ensure every step—from notice and severance to legal compliance and offboarding—is handled correctly, minimizing risks and maintaining positive employee relations throughout the transition.

Hiring B2B contractors in Italy offers companies a flexible and cost-effective way to engage highly skilled professionals, particularly in sectors such as technology, consulting, design, and engineering. Independent professionals in Italy often operate under a Partita IVA, which is an individual VAT registration allowing them to provide services as self-employed entities.

Working with contractors under a B2B agreement can bring many advantages, including greater flexibility, reduced administrative costs, and the ability to scale projects quickly without the long-term obligations of traditional employment. However, Italian labor law imposes strict rules to prevent the misclassification of employees as contractors, which can lead to significant fines and back payments if not handled correctly.

An Employer of Record (EOR) helps mitigate these risks by ensuring that all B2B contracts meet Italian commercial and labor law requirements. The EOR verifies that each contractor relationship is structured correctly — with a clearly defined scope of work, project duration, payment terms, and intellectual property ownership. It also ensures that the contractor maintains independence, such as setting their own working hours and using their own tools or equipment, in line with Italian tax authority standards.

B2B contractors are responsible for managing their own taxes and social security contributions through the Italian self-employment system (Gestione Separata INPS). The EOR can assist in coordinating compliant payment processes and ensuring proper documentation for both parties.

Additionally, B2B collaboration in Italy must respect data protection and confidentiality obligations. The EOR ensures that each contract includes robust non-disclosure agreements (NDAs) and, where applicable, non-compete clauses, protecting the company’s business interests and intellectual property.

By partnering with an EOR, businesses can confidently hire B2B contractors in Italy while maintaining full legal compliance and minimizing risk. This approach provides the agility of freelance collaboration combined with the assurance of a structured, lawful, and professionally managed relationship.

Protecting intellectual property (IP) is a key priority for businesses operating in Italy, especially those working in sectors such as technology, design, fashion, manufacturing, and research. Italy has a strong legal framework that safeguards trademarks, patents, copyrights, industrial designs, and trade secrets, regulated under the Italian Industrial Property Code (Codice della Proprietà Industriale) and harmonized with EU legislation.

When hiring through an Employer of Record (EOR), businesses can ensure that all employment or service agreements clearly define the ownership and use of intellectual property created during the course of work. Under Italian law, any invention or creation developed by an employee in the performance of their duties typically belongs to the employer, but this must be explicitly stated in the contract to avoid disputes. The EOR ensures that all employment and contractor agreements include clauses addressing IP ownership, confidentiality, and post-employment obligations.

For independent contractors (Partita IVA) or B2B collaborations, IP rights are not automatically transferred to the hiring company. Instead, they must be formally assigned through written agreements. The EOR assists in drafting compliant IP assignment clauses that ensure your business retains full rights to any software, designs, or innovations developed by external professionals.

Additionally, the EOR ensures that contracts include robust Non-Disclosure Agreements (NDAs) and non-compete provisions, preventing the misuse of sensitive information and protecting proprietary data. This is especially important in industries such as technology, R&D, and media, where the unauthorized disclosure of trade secrets can cause significant commercial harm.

By leveraging Bizky’s EOR service in Italy, companies can confidently manage IP ownership and compliance without needing to establish a local entity. The EOR ensures that every employment or service relationship respects Italian and EU intellectual property laws, securing your company’s assets, innovations, and creative output.

Remote work — known in Italy as lavoro agile — has become an integral part of the modern Italian labor market, especially in industries such as IT, consulting, marketing, and finance. Italian legislation formally recognizes flexible and remote working arrangements under Law No. 81/2017, which sets out the framework for how employers can manage remote employees while ensuring their rights and protections are maintained.

When hiring remote employees in Italy, companies must comply with the same labor, tax, and social security laws that apply to on-site workers. This includes adhering to working hour limits, providing mandatory benefits, and ensuring workplace health and safety compliance even for remote setups. An Employer of Record (EOR) simplifies this process by handling all contractual, administrative, and compliance-related aspects, allowing businesses to focus on performance and collaboration rather than legal details.

The EOR ensures that remote work contracts include all required provisions, such as:

• Defined working hours and rest periods that comply with Italian law.

• Data protection and cybersecurity measures aligned with GDPR requirements.

• Clear guidelines for equipment use, expense reimbursement, and workplace safety responsibilities.

Italy’s regulations also emphasize the right to disconnect, ensuring that employees working remotely are not required to respond to communications outside of normal working hours. The EOR helps companies implement and document this policy correctly, fostering a healthy work-life balance and compliance with national labor standards.

For international businesses, partnering with an EOR offers the added advantage of accessing Italy’s deep talent pool without setting up a local subsidiary. The EOR manages payroll, taxes, benefits, and local reporting obligations for remote employees, ensuring compliance with INPS, INAIL, and Italian tax authorities.

By leveraging an Employer of Record, companies can hire remote talent anywhere in Italy quickly and compliantly — gaining flexibility, reducing overhead costs, and maintaining full legal alignment with Italy’s evolving employment landscape.