Italy: Contract of Employment

Il Senato della Repubblica ha approvato in via definitiva la conversione in legge del Decreto Primo Maggio 2026, introducendo significative modifiche in materia di salario giusto, incentivi all'occupazione e contrasto del caporalato digitale. Gli emendamenti apportati durante l'iter parlamentare hanno introdotto importanti novità che riguardano il trattamento economico complessivo dei lavoratori, il rinnovo dei contratti collettivi, e nuove regole per il distacco e la somministrazione di lavoro.

La Corte di Cassazione ha stabilito importanti principi sulla retribuzione durante le ferie annuali, chiarendo quando è legittima l'esclusione di alcune indennità normalmente corrisposte. L'ordinanza n. 18529 del 2026 definisce i limiti entro cui la riduzione retributiva nel periodo feriale può essere considerata lecita, bilanciando il diritto del lavoratore con le esigenze organizzative.

The Court of Cassation has ruled on the permissible limits of salary reductions during employee annual leave periods. While remuneration during holidays should generally maintain comparable income levels to normal working periods, the court established that certain allowances may be lawfully excluded, provided the pay difference is minimal enough to avoid deterring employees from exercising their right to take annual leave.

The Italian National Social Security Authority has issued new operational guidance on replacement hiring arrangements during parental leave periods. Employers with fewer than 20 employees may now extend fixed-term contracts for replacement workers beyond the original employee's return, while maintaining significant social security contribution benefits. These clarifications address practical implementation questions surrounding the 2026 Budget Law's provisions on maternity and paternity leave replacements.

Italy's Milleproroghe Decree has been converted into law, introducing significant extensions and modifications to employment incentive bonuses including the Under-35 Bonus, Women Bonus, and Over-34 ZES Bonus. The new legislation adjusts contribution exemption rates and extends deadlines for various hiring incentives, with specific provisions for different regions and employment categories.

The Italian insurance sector has reached a landmark agreement on collective bargaining that balances economic improvements with progressive workplace policies. The renewal introduces significant salary increases and one-off payments while pioneering provisions on artificial intelligence governance, work-life balance, and employee protection in an evolving digital workplace.

Notwithstanding the ‘love' cited by Raymond Carver in his masterpiece, one of the main reasons why people work is the pay.

The Budget law 2024 (law of December 30, 2023, n. 213, art. 1, co. 180/182), established an exemption in favour of working mothers who meet certain requirements...

In the case of cross-border mergers and acquisitions involving Italian companies, one of the main legal issues concerns the mandatory procedures for informing and consulting the unions under Italian law.