Italy: Transnational Employee Posting To Italy

Last Updated: 7 April 2017
Article by TMF Group

Italian Legislative Decree 136/2016 aims to overcome difficulties in preventing and fighting social dumping practices, and inappropriate use of the institution of transnational posting.

Social dumping

A common expression in Italy, the term social dumping describes an employer practice whereby cheaper labour is used than what is usually available at their site of production and/or selling. This generally sees production moved to a low-wage country or area, and/or foreign workers employed with the aim of saving the employer money and potentially increasing his/her profit.

In effect since mid-2016, the Decree introduced a series of administrative tasks which include the obligation, as of 26 December 2016, to provide prior notice of a transnational employee posting under the responsibility of the foreign service provider, for staff working in Italy.

The notice must be provided by 00:00 of the day prior to the start of the posting itself, in compliance with the methods indicated in the Ministerial Decree of 10 August 2016.

*Postings beginning after 22 July 2016 but which ended before 26 January 2017 were exempt from the communication requirement, as have those which began prior to 22 July 2016.


Italy's transnational employee posting regulations affect companies established in other EU member states which, in the context of the provision of services, post one or more employees to Italy in favour of another company, another business unit or recipient, on the condition that, during the posting period, an employment relationship continues to exist between the posted worker and the posting company.

A posted worker is "a worker who normally works in another EU member state who, for a limited period that is pre-determined or can be pre-determined with reference to a future event that is certain, carries out their work in Italy." There are three possible cases:

  • done by a company with registered offices in another EU member state at one of its branches in Italy
  • done by a company with registered offices in another EU member state at an Italian company belonging to the same business group (intragroup posting)

in the context of a commercial contract (tender), stipulated with a client with its registered offices or operating headquarters located in Italy.

The decree also applies to temporary employment agencies established in another EU member state, which post workers to user companies with offices or business units in Italy. Authorisation for temporary work in Italy is not required for agencies which hold an equivalent administrative document as foreseen in the legislation of their home country.

Finally, cases of postings carried out by companies established in non-EU countries also fall under the field of application, provided that these cases are not governed by special laws.

Verification of the posting

To ascertain whether the posting company is carrying out activities other than mere personnel management, the supervisory bodies will verify a series of elements such as the locations in which the company has offices, departments or business units, where its administrative staff is employed, where it is registered with the Chamber of Commerce; regulations applicable to contracts signed by the posting company with clients and workers; the number of contracts executed or the amount of annual turnover.

Elements useful for ascertaining whether the worker is effectively posted include, for example: the content, nature and method by which the work activity and payment is carried out; habitual exercising of the activities in the country where the worker is posted; the temporary nature of the work performed; starting date of the posting; planned return to work in the country from which the worker is posted; the taking on of travel, room and board expenses by the posting company and reimbursement methods; any previous periods in which the same activity was carried out by the same or another posted worker; the existence of a certificate relative to applicable social security legislation (Form A1).

What counts is that for the entire posting period, the posted worker provides work, which must necessarily be of a limited duration and carried out in the interest and on behalf of the posting company, which is responsible for all employer obligations, such as liability relative to hiring, associated payments and social security requirements, disciplinary and dismissal processes.

Form A1 is concerned with the social security legislation applied to the posted worker, stating the obligation of the posting company to pay contributions in the member state in which it is established and not in the hosting country. From a social security point of view, the principle of "personality" applies to posted workers which means the contribution regulations of the country of origin apply. Instead the working conditions of posted workers are those foreseen under the norms and collective contracts for regularly employed workers providing similar services in the location in which the posting occurs (principle of "territoriality"). In case of temporary work, employees have the right to economic and regulatory conditions that are, as a whole, no lower than those of employees of the user at the same level.

False posting

Cases of false transnational employee postings occur when the posting company and/or receiving company establish "fictitious" postings to elude national regulations relative to working conditions and social security.

False postings may include or coincide with cases of illicit interposition, pursuant to Italian Legislative Decree 276/2003.

Protections for workers and fine structure

If the posting is inauthentic, inspection personnel will consider the worker to be an employee of the receiving company in Italy, with all applicable local institutions and protections in terms of work and social legislation.

An administrative fine applies for non-communication of the start of the relationship, as well as a monetary administrative fine of €50 for each worker employed for every day of employment (Euro min. 5,000 – max. 50,000) per posting and receiving company.

If use of child labour occurs, imprisonment for up to 18 months is foreseen with the originally established fine increased by up to six times.

False posting cannot be classified as 'under the table' work and associated fines are excluded.

However, 'under the table' use of posted workers may occur in the case in which the use of said workers continues after communication of early termination of the posting is made.

Joint liability

In case of transnational services carried out through sub-contracts, the employer is jointly liable with the contractor and each sub-contractor for wage claims (including severance indemnities - TFR), contributions and insurance premiums which accrue during the period the tender contract is executed.

Joint liability may be activated by the worker no later than two years from the end of the tender contract.

A substantially analogous joint liability structure is also envisaged in case of temporary work, in the case of the transportation of merchandise pursuant to article 83-bis, paragraphs 4-bis to 4-sexies, Italian Decree Law 112/2008. With particular reference to regulations regarding the transport of goods for third parties, the norms foresee that in the case of a sub-carrier, the client or carrier is required to verify, prior to stipulating the contract, that the business they intend to use to execute the service is in compliance relative to salaries, social security and insurance premiums, acquiring at the time the contract is signed a certification issued by the social security entities in the country of origin, dated no more than three months prior, which indicates that the company has paid all due insurance and social security contributions.

A client or carrier who does not carry out this verification is jointly liable with the carrier, as well as any sub-carriers, within a limit of one year after the termination of the transport contract.

Administrative requirements applying to the service provider

The service provider must send the communication relative to the posting and save the following documentation, in hard or digital copy, in Italy for the entire posting period and until two years after its termination:

  • pay reports
  • reports indicating the start and duration of the daily work day
  • documents demonstrating payment of wages
  • A1 form
  • public registration of the establishment of an employment relationship.

It also must designate a reference person with domicile in Italy, responsible for sending and receiving documents in the name and behalf of the posting company for the entire posting period and up to two years after its termination (if this person is not designated the registered offices of the posting company will be considered as the place where the recipient of the provided services resides and the relevant penalty applies).

It must also designate a person, who may be the reference person, who serves has the legal representative and does not need to be present in the location where the posted work occurs but must be available in case of a reasoned request.

Violation of the requirements is punished as follows:

Communication of the posting - €150 - 500 for each worker
Maintaining a copy in Italian of the prescribed documents for the period indicated - €500 - 3,000 also applicable in case the documents exist but not in Italian
Designating a reference person - €2,000 - 6,000
Designating a representative - €2,000 - 6,000

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.