Doing business in Italy: Staff welfare
09 March 2012by Ina Dimireva -- last modified 30 March 2012
This guide summarizes the main rules that regulate employers' social obligations to their workers.
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Legal requirements
The main legislation which regulates the social obligations of employers is contained in the Workers' Statute.
The welfare system in Italy is structured under three main headings:
- protection for work-related accidents and occupational diseases managed by the Italian Workers' Compensation Authority (INAIL);
- management of pension schemes and related services for private company employees insured by the Italian National Social Security Institute (INPS);
- management of pension schemes and related services for public sector employees insured by the Italian National Social Security Institute for employees in public administration (INPDAP).
Italian Workers' Compensation Authority - INAIL
Italian National Social Security Institute - INPS
Social rules
Non-discrimination, equal treatment and gender equality
Equal treatment in the areas of employment and division of labour is guaranteed by the legislative decree on equal treatment. The measures transpose the EC Directive on equal treatment against every form of discrimination related to religion, personal beliefs, disabilities, age and sexual orientation.
The decree defines the right to protection from either direct or indirect discrimination, therefore also making discriminatory behaviour which may seem less obvious, such as "mobbing", punishable by law.
Equal treatment in the areas of employment and working conditions
The department for equal opportunities is the main body which supports equal opportunities.
Ministry for Equal Opportunies
Under Italian law, there are a series of legislative measures aimed at protecting equal opportunities in the workplace.
National equal opportunity laws
Health and safety at work
Health and safety rules in the working environment are set out in the Decree on safety at work. The Decree has introduced various changes concerning corporate responsibility, particularly during the risk assessment phase.
Severe sanctions have been introduced by law for businesses that break safety rules. Companies which persistently and seriously violate safety rules risk having their business activity suspended (employers risk up to 18 months of jail or a fine of up to EUR 24 000). General contracts, subcontracts and supply contracts that do not indicate costs for safety at work are void.
Legislative Decree on safety at work - Ministry of Labour and Social Security
Those setting up a business must provide employees with occupational accident insurance. This insurance must be taken out with the Italian Workers' Compensation Authority, which is the official body safeguarding workers against physical injury, financial damage and occupational diseases.
Italian Workers' Compensation Authority (INAIL)
Employers must provide insurance for employees and contract workers hired for activities deemed risky by law. Craftsmen and self-employed workers in agriculture are also required to insure themselves.
Insurance relationship - Italian Workers' Compensation Authority
Employers must assess all potential risks to which employees may be exposed.
The risk assessment report helps business owners evaluate measures for providing employees with the safest possible working conditions.
It can be consulted by the person in charge of safety measures within the company, as well as trade union representatives and Local Health Authorities.
Local Health Authorities are responsible for checking that health and safety measures are in place in the working environment.
Definition of bodily harm - Italian Workers' Compensation Authority
Stress pathology - Italian Workers' Compensation Authority
Labour law
Labour relations
In Italy, a minimum wage is not stipulated in national law, but through collective bargaining by the social partners. In the case of internships and project-based contracts, there is no stipulated minimum wage. In fact, these contracts do not refer to any national work contract.
Contracts - National Council for Economics and labour (CNEL)
Employment protection
Italian law safeguards maternity and paternity rights and guarantees the right for adequate assistance with childcare.
Maternity and paternity - Italian National Social Security Institute
Regulations supporting maternity and paternity
Exceptional paid leave is provided for if required by employees to assist persons with serious disabilities.
Disability: Permits and parental leave
Litigation
In the case of individual and joint litigation, the law requires an attempt at conciliation without which it is not possible to proceed with any judicial action. The Directorate-General for the improvement of working conditions plays a mediation role in cases of national work disputes and in general in situations of company crisis.
Directorate-General for the improvement of working conditions
Private employment litigation - Ministry of Labour
Mandatory social rules complete the requirements related to managing staff.
Businesses are free to go beyond the minimum social legal requirements at their own initiative.
Administrative procedures
Non-discrimination, equal treatment and gender equality
The law on gender equality at work stipulates that public and private companies with more than 100 employees must periodically draw up a report on male and female employees.
Instructions for drawing up the periodical report on employees
Software for drawing up the Biennial Report on staff
Health and safety at work
Companies with more than 10 employees who are not particularly exposed to risks can assess these through self-certification.
A risk assessment report has to contain:
- a report evaluating all the possible health and safety risks at work;
- precautionary and individual safety measures adopted;
- a programme defining measures to be taken in order to improve the safety of the working environment;
- procedures required to implement the measures;
- names of the person in charge of accident prevention and safety, the workers' representative responsible for safety and the doctor who took part in the risk assessment;
- an outline of risky tasks carried out by employees with specific qualifications;
- specific risk categories such as work-related stress or stress caused by gender, age and racial differences.
Risk assessment document - INAIL
Social insurance
When setting up a business, business owners must consult the Italian Workers' Compensation Authority (INAIL) and provide insurance for their company.
Unified Compulsory Communication for labour relations
If an employee is ill for more than 3 days due to an accident, it must be reported to INAIL.
Resources
For the latest information on the protocols and agreements of the Italian Workers' Compensation Authority:
Programmes
Numerous financing schemes support competitiveness and social cohesion. These funds are aimed at various activities and are allocated in accordance with the National Strategic Framework Programme for regional development 2007-2013.
National Strategic Programme 2007-2013 - Ministry of Economic Development
Financing schemes for businesses - Italian Chambers of Commerce
Source: European Commission
