FTC regulated: Yes

Valid reasons for FTC use: no limitation

Remarks

According to article 19 of Legislative Decree nº 18/2015, the reasons for executing a fixed-term agreement with duration superior to 12 months, and limited to 24 months, have to be related to one of the following: i)temporary and objective needs, unrelated to ordinary activities, or a temporary need to replace employees; ii) requirements connected to temporary and significant increases in ordinary activities, which could not be planned in advance.
Article 20 provides that FTC's are not lawful in case of i) replacement of workers in strike; ii) replacement of positions in relation to collective dismissals occurred over the past 6 monts; iii) when the business unit suffered suspension or reduction of activities connected to the possible hiring process; iv) to engage workers who have not been evaluated by occupation health services.

Maximum number of successive FTCs: 5

Remarks

Article 21 of Legislative Decree No. 81 of 2015 provides that the term of the FTC can be extended, with the consent of the worker, only when the initial duration of the contract is less than 36 months, and, in any case, for maximum five times in 36 months. If the number of extensions is higher, the contract is transformed into an open-end contract from the effective date of the sixth extension.

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

Remarks

Article 19 of Legislative Decree No. 81 of 2015 provides that the maximum duration of a FTC is 36 months.
Article 21 provides that a FTC can be extended for maximum five times in 36 months.

% of workforce under FTC: 10.8

Remarks

Source: Eurostat, for the year 2015.
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."

Notes / Remarks

Notes

According to article 23 of Legislative Decree 18/2015, the number of workers engaged in FTC´s cannot exceed the limit of 20% of the total amount of workers engaged in open-end contracts. The exceptions provided by paragraph 2 comprise i) start-up phase of new activities or companies; ii) carrying out the seasonal activities referred to in Article 21, paragraph 2; iii) specific shows or specific radio or television programs or for the production of specific audiovisual works; iv) replacement of absent workers; v) workers over 50 years old.

Article 28 establishes that in case a FTC is turned into a open-end contract by a judicial decision, the employer must pay an indemnity correspondent to 2,5 up to 12 months of salary.

According to article 29, the following are excluded from the scope of this chapter, as already governed by specific regulations: a) without prejudice to the provisions of Articles 25 and 27, the relationships established pursuant to Article 8, paragraph 2, of Law no. . 223 of 1991; b) employment relationships between agricultural employers and fixed-term workers, as defined by article 12, paragraph 2, of Legislative Decree 11 August 1993, no. 375; c) calls to service of voluntary staff of the National Fire Brigade. 2 The following are also excluded from the scope of this chapter: a) fixed-term employment contracts with managers, who cannot have a lasting more than five years, except for the right of the manager to withdraw pursuant to article 2118 of the civil code after three years; b) relationships for the execution of special services lasting no more than three days, in the tourism and public sector, in the cases identified by collective agreements, as well as those established for the provision of temporary port work referred to in article 17 of the law 28 January 1994, n. 84, without prejudice to the obligation to communicate the establishment of the employment relationship by the previous day; (19) c) fixed-term contracts entered into with teaching staff and ATAs for the supply of substitutes and with the healthcare staff, including managers, of the National Health Service; d) fixed-term contracts entered into pursuant to law no. 240. (21) 3. To the artistic and technical staff of the music production foundations referred to in Legislative Decree 29 June 1996, no. 367, the provisions of article 19, paragraphs 1 to 3, and 21 do not apply.

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

For those employees hired prior to 7 March 2015 and subject to Article 18 of the Workers' Statute:
pursuant to Article 7 of Law 604 of 1966, as amended by Article 1(40) of Law No. 92 of 2012, employers having more than 15 employees in the same work unit or borough (comune), or more than 60 overall, have to notify public bodies (Direzione Territoriale del Lavoro) when a dismissal for justified objective reason is envisaged, in order to attempt an amicable settlement between the parties. This does not apply to dismissal connected to absence for work because of illness or injury or to other similar cases.

For those employees hired as of 7 March 2015 and subject to Legislative Decree No. 23 of 2015 (so-called 'Jobs Act'):
an employer does not need to notify the public administration: notice to the workers to be dismissed is sufficient.

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): A collective dismissal occurs when a company employing more than 15 employees intends to terminate the employment of at least 5 employees, including executives (dirigenti), in the same work unit, or in more than one work unit in the same province, within a period of 120 days, as a consequence of a reorganisation of the business (Article 24 of Law No. 223 of 1991).

Remarks

For those employees hired prior to 7 March 2015 and subject to Article 18 of the Workers’ Statute, applicable remedies are the following:
a) violation of the collective dismissal procedure: indemnity ranging from 12 to 24 months’ salary, to be discretionary determined by the Judge;
b) violation of the mandatory selection criteria to make an employee redundant: reinstatement plus an indemnity up to 12 months’ salary, to be discretionary determined by the Judge; or
c) dismissal served without written form: reinstatement plus an indemnity not less than 5 months’ salary, to be discretionary determined by the Judge.

As a general remark, note that, within the floor and the ceiling imposed by the law, the Judge determines the actual indemnities sub points a) and b) at his/her own discretion, but using criteria predetermined by the law, such as length of service, number of employees employed and dimension of the business carried out by the company, behaviour and conditions of the parties.

For those employees hired as of 7 March 2015 and subject to Legislative Decree No. 23 of 2015 (so-called ‘Jobs Act’):
a) violation of the collective dismissal procedure: indemnity equal to 2 months’ salary per year of work and, in any case, ranging from 4 to 24 months’ salary;
b) violation of the mandatory selection criteria to make an employee redundant: indemnity equal to 2 months’ salary per year of work and, in any case, ranging from 4 to 24 months’ salary; or
c) dismissal served without written form: reinstatement plus an indemnity not less than 5 months’ salary.

As a general remark, note that the Judge has no discretion in determining the indemnities sub a) and b), because they only depend on the length of service of the dismissed employee.

Note that, as a general rule, an employee – but not an employer – can opt for an indemnity equal to 15 months’ salary instead of being reinstated.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Art. 4 read together with art. 24 Act 223/1991 as amended by Art. 1.44, 1.45, 1.46 of Act 92/2012

Notification to the public administration: Yes

Remarks

Art. 4 and the art. 24 of the Act 223/1991 as amended by articles 1.44 1.45 and 1.46 of the Act 92/2012 provide for the seven days time frame between the moment of the communication on termination to the worker and the moment of the communication on termination to the public administration and workers representatives. Prior to 2012 reform this communication (to the workers from one side and to the workers representatives and public administration from the other side) had to be made in the same moment.
The communication has to have attached the list of the workers whose employment is terminated, residence of the workers, qualifications, age, family responsibilities, as well as the description based on which the employer selected the workers whose employment is terminated.

Notification to workers' representatives: Yes

Remarks

Art. 4 and the art. 24 of the Act 223/1991 as amended by articles 1.44 1.45 and 1.46 of the Act 92/2012 provide for the seven days time frame between the moment of the communication on termination to the worker and the moment of the communication on termination to the public administration and workers representatives. Prior to 2012 reform this communication ( to the workers from one side and to the workers representatives and public administration from the other side) had to be made in the same moment.
The communication has to have attached the list of the workers whose employment is terminated, residence of the workers, qualifications, age, family responsibilities, as well as the description based on which the employer selected the workers whose employment is terminated.

Sanctions for collective dismissal

Art. 5. 3 of the act 223/ 91 as amended by the art. 1.46 of the Act 92/2012

If the employer does not respect the obligation to inform the workers on the termination in the written form the sanctions are prescribed in the art. 18.1 of the Statute 300/70 as modified by the art. 1. 42 of the Act 82/2012. These are: reinstatement of the worker, compensation of damages occurred as a result of the dismissal, pending reinstatement (with a minimum of 5 months' pay), retirement contributions ( contibuti prevendenziali e asistenziali).

If the employer did not respect the procedures prescribed by the art. 4. 12 of the act 223/1991 the sanction applicable is provided by the art. 18.7 of the Statute 300/70 as modified by the art. 1. 42 of the Act 82/2012. In this case the judge will order the employer to pay the employee an indemnity of between 12 and 24 months' salary.

If the priority rules for the collective dismissal have been violated the sanction applicable is prescribed in art. 18.4 of the Statute 300/70 as modified by the art. 1. 42 of the act 82/2012 and the judge will award reinstatement and compensation up to 12 months minus aliunde perceptum and aliunde percipiendum.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks

Art. 5 (1) read together with art. 24 Act 223/1991 as amended by Art. 1.44, 1.45, 1.46 of Act 92/2012 : Mandatory list of 3 criteria to be considered unless provided otherwise in collective agreement: 1) family responsibilities, 2) job tenure, 3) technical, production-related and organizational requirements. But no specified priority between those criteria.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Art. 4(4) read together with Art. 24 Act 223/1991 as amended by Art. 1.44, 1.45, 1.46 of Act 92/2012: refers to alternatives to redundancy and measures to mitigate the social effects of redundancy as part of the elements to be communicated to the trade union representatives for the purpose of consultation.
Art. 4 (5) as modified by art. 1 Act (D. Leg.) 151/1997, read together with art. 24 Act 223/1991 as amended by Art. 1.44, 1.45, 1.46 of Act 92/2012: mandatory examination of the possibility to adopt social measures (i.e retraining).
However, no formal adoption of a social plan is required.

Priority rules for re-employment: Yes

Remarks

Art. 8 Act 223/1991 referring to art 15 Paragraph 6 Act 264/1949.
Preferential rehiring during six months. Before 2002 this period was one year.

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 - Are there legal limits?: Yes

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

Remarks

For those employees hired prior to 7 March 2015 and subject to Article 18 of the Workers' Statute, applicable remedies are the following:
a) dismissal deemed null, discriminatory or retaliatory: reinstatement plus an indemnity not less than 5 months' salary, to be discretionary determined by the Judge;
b) disciplinary dismissal deemed unfair because it was based on facts that did not occur or the economic dismissal was ordered based on an economic or redundancy pretext that was clearly non-existent: reinstatement plus an indemnity up to 12 months' salary, to be discretionary determined by the Judge;
c) in any other case of unfair disciplinary or economic dismissal: indemnity ranging from 12 to 24 months' salary, to be discretionary determined by the Judge;
d) formal or procedural violation affecting the dismissal: indemnity ranging from 6 to 12 months' salary, to be discretionary determined by the Judge.

These are the remedies for those employers having a sizeable workforce (those employers having have more than 15 employees in the same work unit or borough (comune) or more than 60 overall). For those employers not having a sizeable workforce, in case of a dismissal deemed unfair, the indemnity is ranging from 2.5 to 6 months' salary, to be discretionary determined by the Judge, except for dismissal deemed null, discriminatory or retaliatory – in this case, the remedy is the one provided above sub a).

As a general remark, note that, within the floor and the ceiling imposed by the law, the Judge determines the actual indemnities sub points c) and d) at his/her own discretion, but using criteria predetermined by the law, such as length of service, number of employees employed and dimension of the business carried out by the company, behaviour and conditions of the parties.

For those employees hired as of 7 March 2015 and subject to Legislative Decree No. 23 of 2015 (so-called 'Jobs Act'):
a) dismissal deemed null, discriminatory or retaliatory: reinstatement plus an indemnity not less than 5 months' salary, to be discretionary determined by the Judge;
b) disciplinary dismissal deemed unfair because it was based on facts that did not occur: reinstatement plus an indemnity up to 12 months' salary, to be discretionary determined by the Judge;
c) in any other case of unfair disciplinary or economic dismissal: indemnity equal to 2 months' salary per year of work and, in any case, ranging from 4 to 24 months' salary;
d) formal or procedural violation affecting the dismissal: indemnity equal to 1 month salary per year of work and, in any case, ranging from 2 to 12 months' salary.

These are the remedies for those employers having a sizeable workforce (those employers having more than 15 employees in the same work unit or borough (comune) or more than 60 overall). For those employers not having a sizeable workforce, in case of a dismissal deemed unfair, the amounts of the indemnities sub c) and d) are divided by two and cannot be higher than 6 months' salary, except for dismissal deemed null, discriminatory or retaliatory – in this case, the remedy is the one provided above sub a).

As a general remark, note that the Judge has no discretion in determining the indemnities sub c) and d), because they only depend on the length of service of the dismissed employee.
Note that, as a general rule, an employee – but not an employer – can opt for an indemnity equal to 15 months' salary instead of being reinstated.

Reinstatement available: Yes

Remarks

See point above.

Preliminary mandatory conciliation: Yes

Remarks

Conciliation is optional. However, depending on the hiring date and the kind of dismissal at stake, there are some rules that try to promote conciliation.

For those employees hired prior to 7 March 2015 and subject to Article 18 of the Workers' Statute:
pursuant to Article 7 of Law 604 of 1966 as amended by Article 1(40) of Law No. 92 of 2012, employers having more than 15 employees in the same work unit or borough (comune), or more than 60 overall, have to notify public bodies (Direzione Territoriale del Lavoro) when a dismissal for justified objective reason is envisaged, in order to attempt an amicable settlement between the parties. This does not apply to dismissal connected to absence for work because of illness or injury or to other similar cases.

For those employees hired as of 7 March 2015 and subject to Legislative Decree No. 23 of 2015 (so-called 'Jobs Act'):
pursuant to Article 6 of Legislative Decree No. 23 of 2015, immediately following the dismissal, the employer has the opportunity to offer the dismissed employee a monetary compensation of a fixed amount - depending on his/her length of service - which would benefit from a tax and social contribution exemption.

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

Remarks

Article 413 of the 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

Article 412-ter of the 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 the decision of 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

Article 2697 CC: The applicant has 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 defense.
Note that, in certain circumstances, the burden of proof is 'reversed': e.g. Article 5 of Law No. 604 of 1966 provides that the burden of proof of demonstrating the existence of a just cause or subjective/objective reason grounding the dismissal is on the employer.

Notes / Remarks

Notes

The Jobs Act Reform is only applied to contracts signed after 07 of March 2015. The employmen contracts signed before that will follow the rules of article 18 of Statute dei Lavoratori, after the changes brought in 2012.