Employee Rights When an Undertaking is Transferred in Italy

1. Employee Rights

The grounds on which the law permits the transfer of an undertaking must be viewed in the context of the strong protections granted to Italian employees.

The seller and the purchaser are jointly liable for all outstanding benefits that employees were owed at the time of the transfer; however, employees may release the transferor from any obligation arising from their employment contracts;

The employees, whose conditions of employment undergo a significant detrimental change as a consequence of the transfer, are entitled to resign within three months from the transfer and to receive compensation.

2. Requirements for Takeover Party

Italian law does not provide any specific requirement for the takeover party.

For more information on these articles or any other issues involving labour and employment matters in Italy, please contact LABLAW – Studio Legale
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