This guide aims at providing you with an overview of the current rules on posted workers in Italy. First, after a brief introduction about EU directives and their Italian transpositions, we will check preliminary obligations and immigration requirements. Next, we will analyze working conditions in Italy, including social security, salary obligations and more.
Posting Workers to Italy: Directive (EU) 2018/957 and transposition into Italian law
Companies from EU Member States intending to post employees to Italy must comply with various legal requirements and provisions. Directives 96/71/EC, 2014/67/EU and (EU) 2018/957 set out the legal framework in this regard.
For a complete overview of European Directives on the posting of workers, take a look at our guide on EU Posted Workers Directives.
Legislative Decree 15 September 2020, no. 122 implemented Directive (EU) 2018/957 and entered into force on 30 September 2020, amending Legislative Decree no. 136/2016. Under this framework, the Italian working and employment conditions applicable to posting also apply – if more favourable to the posted worker – to the employment relationship between the posted workers and the posting company.
Companies posting their workers to Italy must ensure that their employees receive at least the remuneration required under the applicable Italian posting rules.
Before this amendment, the rules referred to minimum rates of pay, including overtime rates. The Italian transposition of Directive (EU) 2018/957 replaced this reference with the broader concept of remuneration, taking into account the applicable national and territorial collective agreements that are comparatively most representative at national level.
The comparison concerns total gross remuneration, rather than identical individual pay components. Reimbursements of travel, board and lodging expenses actually incurred because of the posting must not be counted as remuneration.
A&P experts are at your disposal to support your company and your employees in the management of your posting fulfilments to Italy.
Below, we provide a summary of the obligations provided by Italian and European Law on transnational posting to Italy.
Preliminary obligations for posting workers to Italy
The company that sends its employees to Italian territory must send a preliminary declaration of posting to the Ministry of Labour and Social Policies. Specifically, the declaration must be sent electronically, through the Ministry’s online services portal, no later than the start of the posting.
It is also required to report subsequent changes within five days of the relevant event.
The posting declaration to Italy must include data about:
- start and end date of the posting;
- the posting and the host company;
- number and personal details of posted workers;
- address of the workplace in Italy;
- type of activity that will take place in Italy;
- name and elected domicile of the representative in Italy;
- and other information required for the specific posting.
In fact, it is also compulsory to appoint a representative with an elected domicile in Italian territory, responsible for sending and receiving acts and documents. This appointment must cover the posting and the two years following its end.
The company must also appoint, for the duration of the posting, a representative empowered to liaise with the social partners for second-level collective bargaining. The same person may perform both roles.
Immigration requirements and work permit for contracting
Non-EU workers holding a valid work permit in a EU Member State may be posted in Italy for up to 90 days within a 180-period for business-related activities. These include:
“economic-commercial reasons, contacts or negotiations, learning and testing the use of capital goods bought or sold in the context of a commercial contract“.
If the activities in Italy differ from those listed above, the employer must apply for a work permit. An example is the entry permit required for subcontracting, applicable when a subcontracting contract exists between the posting company and the Italian client.
Working and salary conditions in Italy
A company sending its employees to Italy is subject to the Italian legal and collective bargaining provisions applicable to posting, where more favourable to the workers. These provisions concern maximum working periods and minimum rest periods, minimum paid annual leave, remuneration including overtime rates, health and safety, equal treatment and other matters specified by law, including certain accommodation and travel expense conditions.
Is there a minimum national wage in Italy?
Italy does not have a statutory minimum national wage. For this reason, foreign employers must carefully analyze and identify the relevant Italian collective bargaining provisions and correctly classify each posted worker at the appropriate level, taking into account the work actually performed.
Mandatory storage of documents regarding posting workers to Italy
For the duration of the posting and for two years after its end, it is mandatory to keep and make available at request of the labour authorities a copy of the following documents:
- Employment contracts or equivalent documents proving the establishment of the employment relationship;
- Payslips;
- Timesheets indicating the beginning, end and duration of daily working hours;
- Documents proving the payment of wages;
- A1 Certificates.
The posting company remains responsible for document retention and availability. The representative with an elected domicile in Italy is responsible for sending and receiving acts and documents and facilitating contact with the competent Italian authorities. In case of a formal request by the competent authorities, posting companies should provide translations of the documents in Italian language.
Social security in Italy
Pursuant to Regulation (EC) 883/2004, workers may remain covered by the sending State’s social security legislation for a posting expected to last no more than 24 months, provided all applicable conditions are met.
The posting company must apply to the competent social security institution for an A1 Certificate confirming the applicable legislation.
Italy has entered into bilateral social security agreements with several non-EU countries. The Italian social security institute (INPS) provides information about the individual agreements, their scope and the relevant procedures. Where an agreement applies, coverage must be assessed under its specific provisions and supported by the appropriate certificate.
Working in the construction sector
Companies posting workers covered by the relevant construction collective agreement to Italy generally have to register them with, and pay contributions to, the competent Cassa Edile/Edilcassa. Their working conditions must comply with the applicable Italian posting rules and collective bargaining provisions.
An exemption may apply to companies contributing to the corresponding funds in Germany, France, Austria or San Marino, under the reciprocal agreements concluded by CNCE.Â
Companies operating on temporary or mobile construction sites must also check whether they are required to hold an Italian patente a crediti or a qualifying equivalent document, subject to the statutory exemptions.
Temporary agency workers
Posting of temporary agency workers to Italy is possible under specific conditions. The temporary work agency remains their employer and is responsible for the posting obligations applicable to it.
The Italian user undertaking also has specific obligations, including informing the posting agency of the working and employment conditions applicable to the posted workers. It must retain an Italian-language copy of this information and evidence of its transmission throughout the assignment and for two years afterwards.
Penalties in case of non-fulfilment of Italian obligations when posting employees
Under Article 12 of Legislative Decree no. 136/2016, failure to comply with the posting notification obligations is punishable by an administrative fine ranging from €180 to €600 per worker concerned.
In the event of failure to comply with the document retention obligations, the posting company is subject to an administrative fine ranging from €600 to €3,600 per worker concerned.
Failure to designate the representative with an elected domicile in Italy, or the representative responsible for relations with the social partners, is punishable by an administrative fine ranging from €2,400 to €7,200.