European Union Directive No. 533/91 has been implemented in Italy and requires that information on the main terms and conditions of employment relationships be evidenced in writing in the employment contract and provided to the employee within 30 days of hiring.
An employment contract normally has an unlimited duration.
Employment contracts can provide for a trial period. During this period each party is free to terminate the contract without notice and without the payment of any indemnity in lieu of such notice. The law requires that the trial period be written in the employment contract and must be entered into on the first day of the employment at the latest. Failing to meet this requirement renders the trial period null and void and the employment is considered fully effective as of the beginning.
Upon termination of an open-ended employment contract, unless the contract is terminated for “just cause” (a reason that does not allow the continuation of the employment relationship) 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 by the applicable collective agreement (with the exception of resignation for “just cause”, where the notice is not due by the employee) the employer has the right to withhold the amount of the payment in lieu of notice from the payments that the employee is entitled to receive as a consequence of the termination of the employment relationship.