What does Italy’s Exclusive Transparency Decree Mean For Its Workers?
Updated: Sep 1
As per the transparency decree, Italian employers will have to provide more specific information to the employee at the time of employment. The decree came to be published on 29 July 2022 and amends the Legislative Decree No. 152/1997 also transposing the EU Directive 2019/1152, also known as the "Transparency Directive".
The new Transparency Decree in Italy requires employers to provide a lot more information in their employment contracts than before. This includes details about different types of labor contracts, forcing companies to redraft their agreements. The decree also introduces a range of information that until now was handled simply by reference to the Collective Bargaining Agreement.
Transparent information obligations are APPLICABLE to the following employment relationships
Employment contract for an indefinite period, part-time and fixed-time;
Intermittent employment contract;
Temporary employment contract;
Collaboration relationships particularly personal and continuous service organized by the client
Coordinated and continuous collaborations
Occasional service contracts;
Employment relationships of employees of public economic bodies and public administrations;
Fisheries workers and maritime workers;
Transparent information obligations are NOT APPLICABLE to the following employment relationships
Collaboration relationships that are determined by family business (family collaborators such as a spouse, kids, relatives, and in-laws within the 3rd degree, must be cohabitants of the employer);
Employment relationships equalling to or less than three hours per week on average in four consecutive weeks;
Employment relations of agency and commercial representations;
Employment relationships of public administration employees serving abroad
Employment relationships of personnel under public law ( police forces, magistrates, etc).
Key Points of the Decree
We present below the central clauses of the transparency decree to help our readers understand what it means for the Italian worker.
Workers' Access to Information
According to a new decree, businesses are required to provide workers with more information at the time of hiring. This includes information that was already mandated by Legislative Decree n. 152/1997, as well as other information that is not allowed to be left out, unlike what is stated in the European Directive. Consequently, companies often have to prepare several pages of an employment contract/letter of employment, which can be confusing for workers since the language used is often technical and difficult to understand.
The information that companies or businesses are expected to provide to their workers at the time of hiring includes but is not limited to:
Daily working hours
Number of working days
Monthly salary amount
The companies are required to provide some information within 7 days while some other information may be shared within 30 days after the commencement of the worker's hiring.
The information must be clear, and transparent, leaving no room for doubts and misgivings.
The information may be shared in paper format or electronically.
Businesses are required to keep proof of information for up to five years after the employment relationship has been terminated.
If an employer does not disclose the required information to their employees, they may be subject to a monetary fine from the Labor Inspectorate. This fine can range from 250 euros to 1,500 euros for each worker affected by the omission.
Information on Foreign Postings
Before an employee leaves on a business trip abroad, their employer must provide them with written information about:
Country of posting
Expected duration of posting
Currency of remuneration
The additional services that the worker is entitled to receive must be stated in cash or in kind.
If repatriation is required, the conditions and rules governing it must be clear.
The appropriate remuneration for the worker according to the host Member State's laws must also be provided.
Notification of specific allowances for posting and methods of reimbursement of travel, boarding and lodging expenses.
Address of the host member state institutional website where information regarding the posting is published.
Not providing the required information comes with a financial penalty from the Labor Inspectorate, ranging from 250 to 1,500 euros for each worker involved.
Permission to Undertake Additional Work Activities
Under the new decree, Italian workers are allowed to perform additional work activities in addition to their full-time roles. The employer cannot bar employees from parallel employment outside of work hours. This will not result in penalization from the employer or client. However, there are some conditionalities where an employer may refuse to allow the employee from undertaking an additional job. These are:
If it poses threat to the health and safety of the employe
If it interferes with public servic
If it sabotages the loyalty of the worker to their employee
Notification of changes in working conditions
The employer has the obligation to inform the employee of any changes in the employment relationship that occur after hiring. This includes changes to working conditions unless they are a result of regulatory changes or clauses in collective agreements. In these cases, there is no need for notification. The new provision shortens the amount of time required to fulfill this type of obligation. In the current system, this would have to be done within one month of the modification being adopted. However, under the new system, it would only need to be done the day before the modification takes effect.
The Labor Inspectorate may impose a fine of 250 to 1,500 euros for each worker found to be without the required information in this case.
Limit of the probationary period
The duration of a fixed-term employment relationship cannot exceed six months unless specified otherwise in a collective agreement. If the worker is absent, the duration may be extended for an equivalent period. In cases of renewal of the contract for the same duties, the proportionate duration must be respected.
Minimum work predictability
Workers who are employed under conditions that are totally or largely unpredictable deserve to have a minimum level of predictability in their work. This means having working hours that are predetermined and being able to know the general location of where work will take place.
It is not possible for an employer to require an employee to do work if the following two conditions are not met:
The employee is given preventive notice of the reference hours and days during which the work can take place.
The employee is given a reasonable period of notice within which they must be informed by the employer about the job assignment.
Obligatory information sharing of automated decision-making or monitoring systems
The use of automated decision-making or monitoring systems in the recruitment process is becoming increasingly common. However, as per the transparency decree, employers or principals must ensure that workers are informed of the use of such systems, and how the information collected may be used to affect their employment relationship. This includes decisions regarding the assignment of tasks and supervision of workers, as well as management and termination of the employment relationship.
Opportunity to transition to stable forms of work
The new decree grants Italian workers the ability to transition to stable forms of work especially those who have been with the same employer for at least six months. In many cases, it is possible for these workers to request, in writing, a more predictable, safe, and stable form of work if one is available. This change can improve the quality of their lives significantly. The employer is not obliged to grant the worker's request to transition to another form of work but must provide a reasoned written response within one month. If the worker makes a similar request and the reason for the response remains unchanged, companies with up to 50 employees may respond orally.
Establishment of Protection Measures
The new decree establishes protection measures for Italian workers. Workers who suffer from a violation of their rights under this decree are protected by law. In particular, article 12 provides for the right of workers to seek recourse through judicial and administrative channels, as well as arbitration procedures provided by collective bargaining agreements. Articles 13 and 14 protect workers from retaliation or dismissal by their employers for invoking the provisions of this decree.
Free Compulsory Training
As an employee, you have the right to free training that is considered as working time. This training must be related to your job and can take place during work hours. However, this does not include professional training or anything that is necessary to obtain, maintain, or renew a professional qualification unless required by law or collective bargaining. The specific provisions on health and safety training are reserved.
PeoItaly, your trustworthy ally in implementing the Transparency Decree
With the transparency decree in action, Italian employers now are required to curate meticulous contracts that meet the set requirements of the legislative system. At PeoItaly, we understand that creating contracts in the light of the transparency decree may be a hard task. Our team of experienced consultants will help guide you through the process and ensure that your contracts meet all the necessary requirements. We'll take care of everything for you, so you can focus on your business. Get in touch with us today!