PEO & EOR services in Italy
Italy offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
PEO/EOR employment termination and notice period in Italy
As you may know, employment in Europe is more employee-friendly than employer-friendly in comparison to North America. An example that showcases employee-friendliness is employment "at will”. Employment “at will” is not an option in Italy.
In Italy, the length of the notice period is provided by each collective agreement. In most collective agreements, the notice is as follows (please note that notice periods may depend on the position of the employee within the organization):
- 9 months tenure: 10 – 75 days
- 4 years tenure: 10 – 75 days
- 20 years tenure: 30 – 180 days
Upon termination of an open-ended employment contract, both the employer and the employee are entitled to a notice period. In case of termination due to a decision of the employer, it can exempt the employee from working during the notice period while paying a corresponding payment in lieu of notice. In case of termination due to a decision of the employee, if he/she resigns without giving the notice period provided, the employer has the right to withhold the amount of the payment in lieu of notice.
Italy EOR/PEO employment: Salary, employer costs and working hours
What are the costs of employing employees in Italy through a PEO/EOR provider? In 2022, the average annual gross wage in Italy was $29.153,04. This is lower than the average annual wage in the United States: $53.490,00.
As a PEO/EOR employer in Italy, the actual employer costs are around 29% to 32% higher than the gross annual salary. Based on a $29.153,04 annual salary, the employment costs would be $37.607,42.
See all average salaries in Europe in 2022
The average working week in Italy amounts to around 36 hours a week, with the maximum legal working week set at 40 hours, plus eight hours of overtime. As work tends to be highly structured, an employee typically works Monday to Friday, 8/9 am to 1 pm, take a one or two-hour lunch break and then work from 2/3 pm to 6/7 pm.
Paid vacation leave and public holidays in Italy PEO/EOR employment
The minimum number of vacation days in Italy based on a 5-day workweek is 20. However, many contracts, particularly for state employees, allow for 28 days, or five weeks, of paid leave per year. Employees in Italy are also entitled to so-called permit hours (permessi) that can be used for personal reasons. The amount of hours depends on the particular collective bargaining agreement.
Employees have to take at least 2 weeks of holiday a year. The days that are left at the end of the year can’t be paid out. When someone leaves, the due holiday days are paid out.
In Italy, there are 12 public holidays. There are also some regional holidays that need to be taken into account:
- New Year's Day – 1 January
- Le Befana - Epiphany – 6 January
- Easter Sunday – 9 April
- Easter Monday – 10 April
- Liberation Day – 25 April
- Labour Day – International Worker's Day – 1 May
- Republic Day – 2 Jun
- Assumption Day – 15 August
- All Saint's Day – 1 November
- Immaculate Conception – 8 December
- Christmas Day – 25 December
- 2nd Day of Christmas (St. Stephen's Day) – 26 December
Add 2023 Italy public holidays to your calendar
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Europe is home to a diverse range of countries, each with its unique employment characteristics. These reflect the diverse economic and cultural landscapes across the continent.
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Get in touch with our team of experts to identify the best PEO/EOR solutions for your needs in Italy today. Our HR Outsourcing services provide you with the right helping hand to enable you to grow.
Monique Ramondt-Sanders
CCO & VP of HR Outsourcing