Labour contract

The employees who work in Italy have a contractual minimum as foreseen by the Collective National Labour Contracts of each single sector. The Collective National Labour Contracts usually last for two years and at the expiry date the parties involved (trade unions and employers’ associations) deal with the renewal.

When a Collective National Labour Contract is renewed the contractual minimums are increased. Such increase, which usually varies between € 100 and € 150, is divided in two or more parts and it is paid accordingly.

The contractual salary increases, which are not to be included in the salary, can be paid through an increase paid by the company on a voluntary basis.

This can be done only if the letter confirming the salary increase specifies that the increase has to be considered as advance for the future contractual salary increases. If this is not mentioned in the letter, the contractual salary increases can’t be absorbed.

In Italy, before starting working, the employees must underwrite a regular contract. Should the contract be missing, the company can come up against high sanctions.

There can be open-end as well fixed-end contracts. If the contract doesn’t mention anything, the labour contract is meant to be an open-end contract.