Types of employment contracts in Italy
Are you introducing yourself to the world of work in Italy and want to have a better understanding of the types of employment contracts that exist? This article is designed to help you navigate regulations, protections and opportunities.
An employment contract is a document of legal value that defines the rights and duties of the employee. It is signed prior to the commencement of employment and includes a whole set of rules governing the relationship between the worker and the employer, or company.
Knowing the different types of contracts is essential to navigate the Italian bureaucracy and, above all, to be aware of one’s rights and obligations.
What an employment contract must include
An employment contract typically includes information such as:
- Job description and responsibilities of the worker;
- duration of employment;
- length of the probationary period;
- pay;
- working hours;
- disciplinary rules;
- specifics regarding severance pay.
In addition, the labor contract serves to regulate all those sensitive situations such as parental leave, sick days, accidents, vacations, transfers, and all cases in which a conflict between employee and employer may arise.
What types of employment contracts exist in italy
There are two main categories of employment contracts in Italy: subordinate and parasubordinate.
Subordinate employment is the classic system in which there is an employer and an employee, “subordinate,” in fact. In contrast, the para-subordinate employment contract serves to regulate more hybrid situations, in which there is no real subordinate relationship, rather an ongoing collaboration.
In addition to this, the various types of labor contracts are divided into categories according to the industry and the specifics of the National Collective Bargaining Agreement (CCNL). Each collective has its own labor contracts particular to its industry and category of workers.
Let’s see what are the main contracts that regulate the labor market in Italy.
Fixed-term contract
It is a contract with a predetermined duration, and therefore an expiration date. It can last a maximum of 24 months and then converts directly to a permanent contract.
The 24-month limit can be exceeded only in the case of exceptions regulated by specific collective agreements and in the case of seasonal work.
It is interesting to know that fixed-term workers have the right of way in the company’s subsequent hiring.
Open-ended contract
Compared to the fixed-term contract, it provides more stability and continuity, both for the worker and the employer. It has no expiration date and the worker can only be fired for “just cause” that is, with a legitimate reason. It is one of the most coveted employment contracts in Italy because it guarantees paid vacation, sickness and maternity leave and other useful protections for the worker.
At the same time, it also protects the employer, since, for example, the notice period for an employee’s resignation is usually twice as long as for a fixed-term contract.
Part-time contract (part-time)
With both of the above contracts, there is the option of working full-time, that is, with a generally 40-hour work week, or part-time, when the number of hours is less than 40.
The number of hours considered full-time and part-time may change depending on the national collective agreement for the specific industry.
Part-time work can take place in three ways:
- Vertical part-time: working full time (8 hours) but only on certain days of the week;
- Horizontal part-time: working every day but for fewer hours (for example, only mornings or only afternoons);
- Mixed part-time: combination of the two types of part-time work.
Apprenticeship contract
The apprenticeship contract is an employment contract designed for those who have just finished their studies and need a training period to learn the job. It is in fact dedicated to young people aged 15 to 29.
In addition to economic remuneration, with the apprenticeship contract, the employer agrees to provide the employee with some vocational training.
Warning. Also the apprenticeship is a form of vocational training but in Italy it is not considered a real employment contract, unlike apprenticeship.
On-call contract
“On-call” work is intermittent work, in which the employee makes himself or herself available to work only when requested by the company.
It is a very flexible type of contract and often very constrained by work flows. The number of hours worked per week or month can vary considerably, so it is not an employment contract that offers economic stability. The on-call labor contract is typical, for example, in the restaurant industry.
Occasional service contract
In the case of sporadic, short and non-continuous work, there is the possibility of entering into an occasional service contract. This is a short-term contract and cannot be used for continuous activities. For the provider, there is an annual earnings limit of 5,000 euros.
Usually using this form of contract are mainly self-employed people at the beginning of their working career, who in this way can get assignments from their first clients before opening VAT numbers.
Are you a recent graduate, a former student or simply entering the labor market in Italy for the first time?Knowing the main types of employment contracts and the rules of the relevant CCNL is the first step to protect yourself and face your career path with greater awareness. Also, if you are a non-EU student, in this guide you can find other useful information on obtaining a residence permit for awaiting employment.
