Italien
Regulations for Working in Italy
Overview
Italy is not only a popular travel destination but also an important economic partner for many companies in Europe. Increasingly, professionals from Germany are temporarily sent to Italy for projects, assembly work, or services. However, anyone working in Italy—whether as part of an assignment or business trip—must comply with numerous legal requirements. Especially important are the reporting obligations, minimum wage regulations in Italy, and labor law provisions, which can vary significantly depending on the industry. This article explains what companies and employees must consider when sending staff to Italy—from legally secure preparation to compliance with Italian labor standards.
EU Posted Workers Directive
What are the requirements?
Foreign employers sending workers to Italy must register the posted employees at least 24 hours before the start of the posting.
Any changes to the posting must be reported within 5 days after they occur.
Registration is done via an online form available in Italian and English, which must be completed and submitted by the foreign employer.
Required Documents
Upon request, foreign employers must provide the Italian authorities with the following documents:
- Employment contract of the posted worker or an equivalent document confirming employment conditions
- Working hours, including start and end times and daily hours worked
- Compensation (pay slips)
- Posting documentation (posting letter or similar)
- A1 certificate of social security coverage
These documents must be translated into Italian and retained during the posting period and for 2 years thereafter, ready for inspection.
Contact Person in Greece
Before the posting begins, foreign employers must appoint a person residing in Italy who will:
- Store the required posting documents
- Be able to send/receive documentation
- Communicate with authorities and trade unions in Italy
Administrative fines for violations may include:
- €180 - €600 for failure to register postings (including late or incorrect registration)
- €600 - €3,600 per posted worker for breaches of recordkeeping obligations
- €2,400 - €7,200 for failure to appoint a contact or recordkeeping representative
The total of all penalties cannot exceed €180,000.If authorities determine that the posting is not genuine, fines of €50 per posted worker per day can be imposed (minimum €5,000 – maximum €50,000).
Labor Law
Minimum Wage
There is no national minimum wage in Italy. Instead, minimum wages are set through collective bargaining between employers and trade unions.
Therefore, wages must be determined on a case-by-case basis.
In general, remuneration includes items such as base salary, overtime pay, service bonuses, paid vacation, benefits, etc.
Each collective bargaining agreement (CBA) defines these components and the conditions under which they are granted.
Working Time
Working time is determined by the applicable collective bargaining agreement.
Non-compliance with local labor laws may result in financial liabilities, fines, or claims under local dismissal and working time laws.
Social Security
If a worker from an EU country is posted to Italy, EU Regulation 883/2004 on the coordination of social security systems applies:
- With A1 certificate: The worker remains covered by the social security system of their home country
- Without A1 certificate: Italian social security rules apply, and the foreign employer must act as if they were an Italian employer
Violations may result in extensive administrative obligations, back payment of contributions (with interest), increased audits, significant penalties, and potential reputational damage.
Income Tax
In general, there are no tax consequences for posted employees if their stay in Italy does not exceed 183 days per year.
If tax obligations arise, the posted worker must comply with them.
Foreign employers are not required to withhold income tax for their posted workers in Italy as long as they do not have a place of management, a registered office, or a permanent establishment in Italy.
The consequences of non-compliance vary but often result in an immediate obligation to file a tax return in the host country, leading to extensive consequences for both employees and employers.
Immigration & Visas
International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.
The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.
Permanent Establishment
Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.
The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.
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