Introduction
Italy is the Eurozone’s third-largest economy and a gateway to over 60 million consumers at home and the wider EU market. Known for strengths in manufacturing, fashion, design, automotive, and renewable energy, it’s also cultivating a fast-growing startup scene. With a strategic location bridging Europe, Africa, and the Middle East and supported by government incentives. Italy offers a powerful mix of tradition, innovation, and opportunity for global expansion.
EOR & PEO Solutions in Italy
If you’re looking to hire employees in Italy without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Italy acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.
This model allows you to expand into Italy quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.
What Is an Employer of Record in Italy?
An Employer of Record Italy (also known as an EOR provider) enables businesses to hire and onboard Italy employees without having to incorporate in-country. The EOR manages:
- Employment contracts in Italy
- Monthly payroll and tax filings
- Statutory benefits in Italy (like social insurance and leave)
- Ongoing HR and compliance responsibilities
What’s the Difference Between EOR and PEO?
A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Italy, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.
Whether you choose an EOR or PEO depends on your Italy hiring strategy, budget, and long-term plans for the market.
Benefits of Using an EOR Service in Italy
- Hire employees in Italy faster, with no setup delays
- Stay compliant with Italian labor and tax laws
- Avoid the cost of forming and maintaining a local entity
- Access local expertise in employment law and payroll in Italy
- Simplify HR management while maintaining control over your team
By using an EOR solution, companies can confidently build their team in Italy, access top talent in Italy, and stay focused on business growth without getting tangled in bureaucracy.
Hiring in Italy
Italy is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Italy successfully, it’s important to understand your options especially when you don’t have a legal entity in Italy.
That’s where using an Employer of Record in Italy makes all the difference.
Your Hiring Options in Italy
Businesses have two main paths to hire employees in Italy:
- Register a local entity, manage payroll and HR directly, and take on full legal responsibility.
- Use an Employer of Record (EOR) a third-party EOR provider that acts as the legal employer in Italy on your behalf.
The second option is faster, lower-risk, and ideal for companies that want to test the Italian market, launch quickly, or hire remote employees without permanent infrastructure.
Why Use an EOR to Hire in Italy?
- Drafting and executing employment contracts in Italy
- Managing Italy payroll and mandatory contributions
- Handling employee benefits as required under Italian labor law
Employment in Italy
Understanding how employment in Italy works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Italian labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.
That’s why many growing businesses choose to use an EOR in Italy to handle these responsibilities with confidence.
Employment Contracts in Italy
All employees in Italy must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Italy, and are usually signed before or on the first day of work.
By working with a Italy employer of record, you can ensure that all employment contracts in Italy are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.
Payroll & Employer Contributions
Payroll in Italy involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:
- Social Security (INPS)
- Accident Insurance (INAIL)
- Severance Accrual (TFR – Trattamento di Fine Rapporto)
- Unemployment, Sickness, Maternity Contribution
These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Italy handles this for you, managing all payroll, tax filings, and reporting on your behalf.
Employee Benefits and Leave
Italian labor law mandates several employee benefits, including:
- Annual Paid Leave
- Sick Leave
- Maternity Leave
- Public Holidays
- Paternity Leave
- Parental Leave
Using an employer of record service ensures your team in Italy receives all required benefits and that your business remains fully compliant with Italian employment law.
Termination & Notice Periods
Ending an employment contract in Italy requires strict compliance with statutory notice periods and well-defined termination procedures under Italian labor law. Notice periods vary depending on the employee’s role, seniority, and applicable collective bargaining agreement (CBA). Employers must ensure that dismissals are grounded in valid reasons—whether economic, organizational, or disciplinary—while following due process to avoid disputes or legal challenges. When operating through an Employer of Record (EOR), these obligations remain the same, with the EOR managing compliance and ensuring that notice periods and termination practices are handled lawfully and respectfully.
Visas & Permits in Italy
If you’re planning to hire employees in Italy or bring in foreign talent, understanding Italy’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Italy makes it much easier.
An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Italy with confidence.
Work Permits for Foreign Employees in Italy
Foreign nationals who plan to work in Italy must secure the appropriate work and residence permits, which are closely linked to the type of role, skill level, and country of origin. Italy operates under a quota system for many permits, with special categories such as the EU Blue Card available for highly skilled professionals. The process can be complex, requiring coordination with consulates, local authorities, and compliance with immigration caps.
An Employer of Record (EOR) simplifies this journey by guiding both employer and employee through the application process, ensuring compliance with Italian regulations, and managing the administrative steps so companies can onboard international talent smoothly and without delay.
Types of Visas for Foreign Talent
There are several types of visas used to work or do business in Italy, including:
- EU Blue Cards
- Salaried Employment Visas (Lavoro Subordinato)
- Self-Employment / Startup Visas
- Seasonal Worker Visa
- Digital Nomad Visas
- Intra-Company Transfer (ICT) Visas
- Research Visas
- Start-up Visas
- Working Holiday Visas
- Family Reunion Visas
Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Italy or send international staff temporarily, an EOR Italy solution helps you identify the right visa and manage the application process end-to-end.
Business Permits for Foreign Companies
To operate directly in Italy, foreign companies typically need to register a legal entity in Italy and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Italian labor laws.
Alternatively, you can use an EOR in Italy to bypass the need for a local entity. The Italy employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Italy.
Why Visas & Permits Matter for Global Hiring
If you’re hiring foreign employees in Italy, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:
- Avoid visa delays or permit denials
- Ensure alignment with Italian employment law
- Quickly hire and onboard top talent without risk
- Operate legally, even without a registered entity in Italy
Common Questions on EOR in Italy
Yes — EORs in Italy play a critical role in ensuring compliance with national labor laws and the extensive system of collective bargaining agreements (CBAs), which vary by sector. This reduces risk and helps employers avoid penalties or disputes.
Absolutely. Employees hired via an EOR are still covered by Italian labor laws and CBAs, meaning they have access to the same protections, benefits, and entitlements as if they were hired directly by a local entity.
Yes — an EOR can employ full-time staff under Italian labor law while also helping manage contractors. Importantly, it ensures proper classification to avoid misclassification risks, which are taken very seriously in Italy.
Hiring through an EOR is significantly faster than establishing a local entity, often enabling companies to onboard employees in a matter of weeks rather than months, as the EOR already has the legal infrastructure in place.
An EOR issues compliant employment contracts that reflect Italian labor law and the relevant national collective bargaining agreement (CBA), ensuring all mandatory terms such as working hours, salary, probation, benefits, and notice periods are included.
