Anyone who is employed in Italy should know their rights: from the employment contract to the pay stub to termination. This guide explains the most important aspects of Italian labor law—including the key terms you’ll encounter on your contract and pay stub.
The Employment Contract
There are two main types of contracts: permanent (permanent) and temporary (fixed-term). Each contract refers to a CCNL (Contratto Collettivo Nazionale di Lavoro) – the industry-wide collective bargaining agreement, which governs wages, vacation time, working hours, and notice periods. At the start, a Trial period (probationary period).
Wages and Pay Stubs
The monthly pay stub is called busta paga. The gross annual salary is RAL. An Italian specialty: the 13th monthly salary (thirteenth) in December, and in some industries, a 14th month's salary as well (fourteenth). Tax (IRPEF) and social security contributions are deducted from the gross amount and paid to the INPS from.
Find a Job and Work in Italy
Working in Italy: Work permits for non-EU citizens (decreto flussi), job search via EURES and job portals, applying for jobs, recognition of degrees, language, and salaries.
Termination Pay, Vacation, and Sick Leave
- TFR (Severance Pay): a type of severance payment that is accumulated over the years and paid out on the Termination of Employment is paid out.
- Vacation (vacation): usually about four weeks per year, plus paid time off (permits/ROL).
- Illness (illness): You need a doctor's note, which is submitted digitally to the INPS and your employer.
The Notice of Termination
One Termination by the Employer (dismissal) is permitted only for a valid reason – just cause (serious reason) or justifiable reason (e.g., for business reasons). If you resign (resignation), is this done through a mandatory Online Procedures. In both cases, a Notice Period (notice) according to the CCNL. If you lose your job through no fault of your own, this can NASpI Unemployment Benefits take action.
What You Need to Do Next
Before signing, make sure you understand the type of contract, the applicable CCNL, and the probationary period. Check your pay stub regularly (wages, contributions, vacation balance). In the event of a dispute or termination, a union can help (union) or a patronage. If you're still looking, you'll find tips in the guide Find a Job in Italy.
FAQ - Frequently Asked Questions About Labor Law in Italy
Sources
- Ministry of Labor and Social Policies (accessed in June 2026)
- INPS – National Social Security Institute (accessed in June 2026)
