Here is a brief introduction of the labor discipline.

Regarding hiring, it is important to note that there is no general requirement for a written contract, although most collective bargaining agreements require it. In contrast, a l l part-time and fixed-term contracts must be in writing.
Enterprises with 15 or more employees are required to hire from “protected categories,” such as widows, orphans, refugees, and people with disabilities.

Collective bargaining agreements define minimum wage levels and benefits and usually offer 13 or 14 months’ pay per year.

On average, there are 8 working hours per day. The maximum weekly working time is 48 hours (including overtime) over a reference period of up to 4 months. Overtime cannot exceed 250 hours per year; if the employer does not comply with this limit, he or she may face administrative penalties.

There are 11 religious and national holidays. Everyone is allowed one day off per week and a 4-week annual leave period.

The Labor Reform of 2012 introduced some changes, the contract types are now mainly: apprenticeship contracts (min. 6 months and with a max. ratio of 1.5 to hires), part-time work, fixed-term contracts and permanent contracts.

When an employee is laid off, whatever the cause or status, he or she is entitled to payment of the following mandatory items:

• Severance pay (“Trattamento di Fine Rapporto “). The amount is determined by dividing each gross annual salary by 13.5; severance pay is taxable but not subject to social security contributions;
• Other amounts. Employees are entitled to allowances for unused vacation, leave and thirteenth-month pay and / or 14th.
• Notice period. Workers dismissed for reasons other than just cause are entitled to a notice period that depends on the employee’s category and length of service.

The Italian social security system administered by INPS (“Istituto Nazionale Previdenza Sociale”), is mandatory and provides comprehensive benefits for all employees. Employee and employer jointly finance social security costs, which are calculated on gross pay. Employers pay two-thirds of the contributions, while employees pay the remaining third.A wage compensation fund is available to industrial workers. The employer provides 80 percent of gross wages for hours not worked, and is subsequently reimbursed by INPS.

An extraordinary wage compensation fund (Cassa Integrazione Guadagni) supported b y INPS temporarily supports workers who have had their hours reduced employment in a restructured, reorganized or converted company. Only the companies with more than 15 workers are eligible. The Supplementary Fund guarantees 80 percent of the worker’s gross wages for hours not worked, and is payable over a continuous 12-month period.

Italy’s mandatory pension system has been financed by employer-paid social contributions during working life, and is based on actuarial equity. The retirement age is now set at 67. The system has recently been reformed several times, and there are complex transitional regulations.