A. THE CREATION OF WORKING RELATIONS
- The essential element of the employment agreement is the exchange between work provided by the employee and wages paid by the employer for the performance of such work;
- The obligation to inform the worker of certain aspects concerning the employment relationship and the obligation to set down certain clauses in writing, make the written form essential;
- The full time open-ended contract is the usual form of employment. Alongside the fulltime open-ended employment contract, there are alternative more flexible forms of contract, such as part-time employment contract (fixed-term or openended contract) characterized by shorter working hours;
- A term may be applied to an employment contract of no longer than 36 months (fixed-term contract);
- As of 2015, the “Jobs Act” has made important changes to the entire system of employment contracts. New hirings have “gradual” protections directly linked to length of service. Reinstatement is no longer the sole remedy for unfair and wrongful dismissal, being largely replaced by an award of damages calculated on the basis of length of service;
- The parties may envisage a trial period agreement in order to evaluate whether they wish to finalize an employment relationship. The contract must be in writing upon penalty of invalidity;
- Under Italian law, employers are required to implement policies concerning employees’ privacy protection and policies concerning control of the use of employer’s tools (personal computer, phone, internet, mails, and social media). Furthermore, it is recommended to create a disciplinary policy to address employee misconduct and how the company will respond to any possible misconduct;
- The employer is obliged to ensure health and safety at work and has to proceed to an evaluation of risks, drafting a risk assessment report.
- The employer must register the employee with the Social Security Body INPS using the online procedures set in place by INPS, in sufficient time to allow payment of contributions to the social security body;
- The employer forwards the notice of commencement of work, since he is obliged under law to insure employees against the risk of injury/occupational diseases, no later than the date on which the insured activity commences;
- When appointing someone, the employer sends the data concerning the employment contract to the competent Employment Centre by digital means (notice of employment);
- The employer is obliged to provide, fill in and keep at the registered office an employee register (LUL), containing information relating to employees, including payments and attendance records;
- Omitted registration may lead to penalties, which may apply under civil, administrative or criminal law.
C. REMUNERATION AND SOCIAL CONTRIBUTIONS
- Remuneration must be proportioned to quantity and quality of work performed and in any case sufficient to ensure to workers and their families a free and dignified life.
It may exist in various forms: on a time basis, on a piecework basis, profit sharing, in kind, and in the form of commission.
Retribution must be paid by means of a payslip according to terms and procedures in use where the work is performed and provided for by the National Collective Bargaining Agreements.
- Contributions to INPS are owed in part by the employer and in part by the employee, and are calculated by the employer on the income taxable for social security purposes.
On a monthly basis, the employer sends the data flow of income and contributions digitally to INPS and, every month, using F24 form, pays the total contributions owed.
D. WORKING HOURS, HOLIDAYS AND REST PERIODS
- Working hours are the period during which the employee is at work, at the employer’s disposal and performing his activities and duties.
Normal working hours: normal working hours are fixed at 40 hours per week.
Overtime: work exceeding an average of 40 hours per week or exceeding the weekly working hours established by National Collective bargaining Agreement, but within the maximum limit of 48 hours per week also to be calculated as an average.
- The employee has the right to a weekly rest day, which usually falls on a Sunday • The employee is entitled to a period of annual leave of no less than 4 weeks, which may not be replaced by payment, except for the case of termination of the employment relationship. It is an inalienable right that is acquired gradually during the year.
E. UNION AND COLLECTIVE BARGAINING
- A collective bargaining agreement is an agreement between one or more trade unions and employers, with the purpose of regulating certain aspects of the employment relationship and, when applied to the employment relationship, generally may not be departed from the individual contract;
- In a company the employees are represented by a “corporate union representative body” RSA or a “joint union representative body” RSU.