FTC regulated: Yes

Valid reasons for FTC use: no limitation on first FTC

Remarks

Art. 10 Leg. Decree 368/2001 provides for specific exceptions:
(in particular to the tourism sector, agricultural sector, contracts concluded with executives (dirigenti): see. Art. 10 on the scope of application).

New in 2014 : no need for objective and material reason to enter into a FTC. The number of employees with a FTC cannot exceed 20% of an employers' overall workforce.

Maximum number of successive FTCs: no limitation

Remarks

Unlimited number of renewals is possible provided that the 36-month maximum cumulative duration of successive FTCs is complied with and an interruption between the previous FTC expiring and a new one starting occurs (interruptions must be for at least 10 days if the previous FTC with the same employee was shorter than 6 months; 20 days for longer previous FTCs).

New in 2014 : extension is allowed up to 5 times only for fixed-term contracts with an initial duration of less than 3 years: art. 4 Leg. Decree No. 368 of 2001 amended by Decree No. 34 of 2014.

Maximum cumulative duration of successive FTCs: 36month(s)

Remarks

Art. 4 Leg. Decree 368/2001
However, further renewal is possible if authorized by the Direzione Provinciale del Lavoro (art 4 bis of Leg. Decree 368/2001 as inserted by sec. 40, Act 247/2007).

Under art. 5.4ter of Legislative Decree 368/2001, as amended by Law 92/2012, exception to the 36-month limit could be provided by national collective bargaining agreements.

New in 2014 : Before 2014 the 36-month limitation only applied to successive FTC. In the case of a single FTC, no maximum duration was fixed by the law. After Decree 34/2014, the maximum duration of a FTC cannot exceed 36 months, save for exceptional cases (e.g. executives (dirigenti)).

% of workforce under FTC: 14.2

Remarks

Source: Eurostat, as of second trimester 2012.
The figure refers to the percentage of employee with a contract of limited duration (= temporary job) of total number of employee aged 15-74 years.
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

Probationary period is governed by collective agreement. However there is a statutory limit of 6 months: art. 10 Act 604/1966.

Obligation to provide reasons to the employee: Yes

Remarks

Art. 2 Act 604/1966 as amended by art. 1.37 of the Act 92/2012.

As from Act 92/2012, reason of termination must be provided within the termination letter when the termination letter is served. Before Act 92/2012, the employee could request the justification within 15 days from the notification and the employer had 7 days to reply.

Valid grounds (justified dismissal): any fair reasons

Remarks

A dismissal is unfair unless it is for a just cause (no notice required) or a justified motive (notice required)
See art. 1 and 3 Act 604/1966 and art. 2119 CC.

Under art. 2119 C.C., 'just cause', in broad terms, requires very grave conduct which, when evaluated both subjectively and objectively, constitutes a serious and irremediable reason that prevents the parties to continue the employment relationship even on an interim basis. Whether such a breach has occurred would normally have to be determined ultimately by a court, taking all relevant factors into account.
Justified reason is defined as a very significant breach of contract made on the side of the employee (subjective justified reason) as well as ; or reasons inherent in the production process, the organization of work or the smooth running of the undertaking (objective justified reason) (sec. 3, Act 604).

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, filing a complaint against the employer, race, sex, sexual orientation, religion, political opinion, age, trade union membership and activities, disability, exercise of a right, parental leave, participation in a lawful strike, whistle blowing, adoption leave

Remarks

Art. 15 and Art. 18 Act 300/1970, as amended by Law 92/2012 .
Art. 3 Act 604/1966
Art. 35 Legislative Decree 198/2006
Art. 54 Legislative Decree 151/2001
Art. 18 (1) Act 53/2000.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities

Remarks

- Worker's representatives: there is a protection in art. 28 Act 300/1970 (workers' statute) which provides for specific simplified procedure for reinstatement following unfair dismissal. Specific remedies are also provided under Art. 18 Act 300/1970

- Pregnant women, women on maternity leave, women with family responsibilities: see Legislative Decree 151 of 2001 on the protection of maternity and paternity. According to art. 54, dismissal is prohibited form the beginning of the pregnancy and up to a maximum of one year after the birth of the child.
This prohibition does not however prevent an employer for dismissing a female employee in the event of serious misconduct (just cause) or in case of cessation of the activities of the employer.

- Workers on paternity leave equally benefit from the protection against dismissal. (note however that under Italian law, a worker is entitled to paternity leave in limited situations: death of the mother, serious disability or abandonment by the mother or exclusive custody of the child to the father).

- The prohibition of dismissal has also been extended to cover adoption leave (up until one year after the child has entered the family).

Notification to the worker to be dismissed: written

Remarks

Art. 2 Act 604/1966: as amended by art. 1.37 of the Act 92/2012.

As from Act 92/2012, reason of termination must be provided within the termination letter when the termination letter is served. Before Act 92/2012, the employee could request the justification within 15 days from the notification and the employer had 7 days to reply.

Notice period:

Remarks

The length of the notice period is normally governed by collective agreements according to the employee's length of service and category.
See also art. 2118 CC.

Pay in lieu of notice: Yes

Remarks

Art. 2118 Civil Code

Notification to the public administration: Yes

Remarks

Since 2012, pursuant to Art.7, Law 604/1966 as amended by Art. 1.40 of Act 92/2012, employers with more than 15 employees (or five in the agricultural sector) in one production work unit, or more than one in the same municipality, and employers employing more than 60 workers wherever located, have to notify public bodies (Direzione Territoriale del Lavoro) when a dismissal for justified objective reason is contemplated, in order to attempt an amicable settlement between the parties.

Art. 7.4 of decree 76/2013 specified that this does not apply to dismissal connected to absence for work because of illness or injury or to other similar cases.

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 2 years: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Notes / Remarks

Notes

No severance pay as such. However, there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
It is calculated according to the formula of a year's overall salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an employment contract ends for whatever reason, and is based on length of service with the company.
The TFR payment scheme has been reformed. Since 2007, the employer's contributions for the TFR have been transferred to either a state pension fund or private complementary pension funds.

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):

Remarks

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
1) For employers with more than 15 employees (or five in the agricultural sector) in one production unit, or more than one in the same municipality, and employers employing more than 60 workers wherever located.

See: art. 18 Act 300/1970 (workers' statute) as amended by Art 1.42 of Law 92/2012. Before this amendment, mandatory reinstatement of the dismissed employee and payment of damages for the period between the dismissal and the reinstatement but not less than five months' pay applied to all cases of unfair dismissal issued by employers with more than 15 employees (or five in the agricultural sector) in one production work unit, or more than one in the same municipality, and employers employing more than 60 workers wherever located.

In case of unfair dismissal (lack of justification, discriminatory, irregular procedures):
Discriminatory dismissal or based on prohibited grounds - the applicable sanctions: Mandatory reinstatement of the dismissed employee and payment of damages for the period between dismissal and the reinstatement but not less than five months' pay. (Art. 18.1 of WS 300/70 as amended by art. 1.42b of the Act 82/2912)
Unlawful disciplinary dismissals: because of the lack of the elements which characterize the employers' claim (INSUSSISTENZA DEL FATTO CONTESTATO) or because the sanction applied could have been other than dismissal - the applicable sanctions: the court will order the employer to pay the employee an indemnity of not more than 12 months' salary + reinstatement. (Art. 18.4 of WS 300/70 as amended by art. 1.42b of the Act 82/2912)
Unlawful disciplinary dismissals because the judge finds that "other" elements which constitute disciplinary dismissal are lacking - the applicable sanctions: compensation 12 to 24 months salary. (Art. 18.5 of the WS 300/70 as amended by art. 1.42b of the Act 82/2912)
Because the procedure has been violated (*violation of the art. 2.2 of the Act 604/1966, of the art. 7 of the Act 604/1966; and art. 7 Statuto Lavoro)- the applicable sanctions: the judge confirms the termination of employment and awards compensation from 6 to 12 months salary, unless the judge if requested by the worker, verifies that the termination is not justified in which case art. 18.1 or 18.4 or 18.5 or 18.7 workers as amended by art. 1.42b of the Act 82/2912 are applied. (art. 18.6 of the WS 300/70 as amended by art. 1.42b of the Act 82/2912)
Unlawful economical dismissal - the applicable sanctions: If the reason for the dismissal is manifestly in-existent, the judge can apply the sanction provided for in article 18.4 WS as amended b art. 1.42b of the Act 82/2912. In other unlawful economical dismissal cases the judge can apply the sanction imposed by the art. 18.5 as amended by by art. 1.42b of the Act 82/2912. (Art. 18.7 of the WS 300/70 as amended by art. 1.42b of the Act 82/2912)
In the case of an unjustified dismissal because of physical or mental reasons related to the worker or because of the violation of the art. 2010.2 of the Civil Code the judge will apply the sanction provided for in the art. 18.4 WS 300/70 as amended by art. 1.42b of the Act 82/2912)

2) For establishments with up to 15 employees (or 5 in the agricultural sector):
* Rehiring (new contract) or if refused by the employer, compensation ranging from 2,5 to six months' pay (depending on job tenure and firm size), up to 10 months pay for more than 10 years of service, and up to 14 months for more than 20 years of service. However, when the dismissal is held to be discriminatory or however based on prohibited grounds or retaliatory or in any other case in which the law provides the dismissal to be held null and void mandatory reinstatement of the dismissed employee and payment of damages for the period between the dismissal and the reinstatement but not less than five months' pay would apply.
See: art. 8 Act 604/1966.



Reinstatement available: Yes

Remarks

Depending on the number of employees and/or the nature of irregularity affecting the dismissal as previously mentioned reinstatement can be either mandatory or optional: art. 18 Act 300/1970 Act (workers' statute) and art. 8 Act 604/1966.

Preliminary mandatory conciliation: Yes

Remarks

Conciliation is optional.

Since 2012, pursuant to Art.7, Law 604/1966 as amended by Art. 1.40 of Act 92/2012,, employers with more than 15 employees (or five in the agricultural sector) in one production work unit, or more than one in the same municipality, and employers employing more than 60 workers wherever located, have to notify public bodies (Direzione Territoriale del Lavoro) when a dismissal for justified objective reason is contemplated, in order to attempt an amicable settlement between the parties.

Art. 7.4 of decree 76/2013 specified that this does not apply to dismissal connected to absence for work because of illness or injury or to other similar cases.

Competent court(s) / tribunal(s): labour court

Remarks

Art. 413 Civil Procedure Code.
The labour court "giudice del lavoro" is integrated into the organization of the general civil court system, but follow special procedures.

Existing arbitration: Yes

Remarks

Art. 412-ter Civil Procedure Code: arbitration must be foreseen by a collective agreement.

Length of procedure: 23month(s)

Remarks

As of 2004, for first instance cases
(26 months for appeal cases)
Source: http://www.corteappellocatania.it/formazione/051007/durata.pdf, p. 3
citing the 2006 report of the European Commission for the Efficiency of Justice : http://www.coe.int/t/dghl/cooperation/cepej/default_en.asp)

Art. 6 of the act 604 /1966 as amended by the art. 32.1 of the Act 183/2010 as amended by the art. 1.38 of the Act 82/2012, states that any type of dismissal must be claimed from the employer within 60 (*this however does not have to be respected as you can go to the judge directly) days from the moment of the notification. In this case 60 days is a deadline for giving a notification to the employer that you would like to challenge his/hers decision on termination. From the moment the employer is notified, a new deadline starts within which a worker has to go to the judge (180 days deadline). Before 2012 reform the 180 days deadline was 270 days deadline.

Burden of Proof: both

Remarks

Civil Code, Section 2697 - the applicant to prove the facts on which his or her claim is based, i.e. the facts that have the legal effects claimed. The defendant, on the other hand, must provide evidence of facts precluding liability, or showing that a right has been exhausted or changed in such a way that the applicant's claim should be dismissed. If the applicant is unable to substantiate his or her claim, the application is dismissed, irrespective of whether the defendant submits arguments and supporting evidence in defence.