Employer of Record

Hire in Italy with an Employer of Record

Italy has no single nationwide notice period: the national collective bargaining agreement (CCNL) covering the role and the individual employment contract normally set the notice or payment in lieu, and a dismissal for just cause can take effect immediately without notice. Share the role, the applicable CCNL sector and your intended start date, and PIO confirms the arrangement, then coordinates the contract, payroll and leave around it.

Illustration representing hiring an employee in Italy through PIO's Employer of Record service

What to plan for

Practical points to line up before you hire in Italy.

Payroll & INPS social security contributions

Italian payroll is built around gross salary plus mandatory INPS social security contributions calculated according to INPS's own methodology — budget for the full employment cost, not just the base salary.

Source:Calculation of contributions

Statutory paid annual leave

Italian law entitles employees to paid annual leave under Ministry of Labour rules. Build the entitlement into the employment terms from day one and track it consistently while the employee is working for you.

Source:Annual leave

Notice before ending employment

Italy has no single nationwide notice period — the national collective bargaining agreement (CCNL) covering the role and the individual employment contract normally set the notice or payment in lieu. The one exception is dismissal for just cause, which can take effect immediately without notice. Plan any exit around the CCNL-driven requirement rather than an immediate stop date.

Source:End of employment

Formalities when employment ends

Beyond notice, Italian end-of-employment guidance points to formal steps and documentation that accompany a termination or resignation. Keeping this paperwork in order protects both sides once the relationship ends.

Source:End of employment

What PIO helps coordinate / What you provide

What PIO helps coordinate

Once your hire is confirmed, here's what we help you coordinate.

  • Confirming country availability and the arrangement for your hire
  • Coordinating the information and documents needed for onboarding
  • Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
  • Explaining the process for changes, leave and offboarding

What you provide

You stay in control of the decisions that are yours to make.

  • The role, compensation and any company-specific policies
  • Final approval on the offer and any changes to it
  • A point of contact for escalations during employment

How it works

A straightforward path from sign-up to your employee's first day.

  1. Step 1

    Tell us about the hire

    Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.

  2. Step 2

    We coordinate onboarding

    Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.

  3. Step 3

    Your employee starts

    You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.

Frequently asked questions

Does Italian law set one fixed notice period for every employee?

No — Italy has no single nationwide notice period. Ministry of Labour guidance on the end of employment ties the notice period to the collective bargaining agreement (CCNL) that covers the role, referenced in the individual employment contract, so the length varies by sector and seniority. The one exception is dismissal for just cause, which can take effect immediately with no notice period at all. We apply whatever your confirmed CCNL and contract set out.

Source:End of employment

What exactly goes into calculating INPS contributions for an employee in Italy?

INPS applies set contribution rates to the employee's gross taxable pay, then adjusts for any reductions or exemptions that apply and any welfare benefits you've advanced to the employee on INPS's behalf — it isn't a flat percentage of net salary. Once your hire is confirmed, we help coordinate the recurring payroll processing within your arrangement.

Source:Calculation of contributions

Can I use PIO to start an EOR hire in Italy?

Yes — Italy is one of the countries where PIO can currently help you start the process. Sign up or book a demo to confirm the role, the worker's details and the arrangement available for your specific hire.

What happens to unused annual leave when an employment in Italy ends?

Ministry of Labour rules set a four-week yearly minimum, with two weeks to be taken consecutively — that statutory minimum can't be paid out in cash while the employment relationship continues; it has to be taken as actual time off. Any remaining days are normally due within 18 months of the year they were earned, unless the CCNL covering the role sets a different window. It's a different story once employment ends: accrued, untaken leave is paid out rather than simply lapsing.

Source:Annual leave

What if we end an employment in Italy without giving the full notice period?

Ministry of Labour guidance on the end of employment is direct on this: because there's no single nationwide notice period, what's owed depends on the notice set by the applicable CCNL and the individual contract — if that notice isn't given, an indemnity in lieu of notice is owed instead. The one exception is dismissal for just cause, which can take effect immediately with no notice or indemnity owed. Budget for that cost when planning a standard exit.

Source:End of employment

3 official sources

Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.

Ready to hire in Italy?

Sign up to start an EOR hire in Italy. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.