Italy: Employment Law Newsletter | November 2024

In brief

This publication features the latest employment developments in Italy, including new immigration rules for non-EU workers and recent case law on dismissals, the use of recorded conversations as evidence in court, reclassification claims by freelance workers, and reduction of compensation without the employee's consent.


New laws and regulations

Visas for non-EU workers: new rules for 2025

The Italian government issued a new law that significantly changes immigration rules for 2025. It aims to grant more protection to foreign workers and victims of unlawful labor exploitation. 

In fact, the monitoring procedures for the entry of foreign workers have been strengthened, while at the same time simplifying the processes for obtaining clearances and residence permits. New rules governing the repatriation of irregular migrants have also been implemented.

Measures were also introduced in favor of migrants who cooperate with the authorities in the fight against illegal labor.

Case law developments

Employees can use recorded conversations in court               

The Italian Supreme Court confirmed that it is lawful for employees to use a recording of a business meeting as evidence in court, even if the attendees of the meeting did not give their consent to the recording. According to the court, the right to defense in litigation overrides an individuals' right to privacy.

Insulting a colleague is not a just cause for dismissal 

Even if insulting a colleague may be a ground for disciplinary action, this alone is not always sufficient to justify termination. In a recent ruling, the Italian Supreme Court held that the conduct of an employee, who insulted a colleague, did not constitute just cause for dismissal, since (i) the insults were not followed by physical violence and only resulted in impaired relations between colleagues at the workplace, without serious damage to the company's interests, and (ii) the employee's conduct did not constitute a criminal offense nor lead to any conviction in criminal proceedings, it being the first time that the employee had acted in such a way.

Reclassification claims by freelance workers

According to the Italian Supreme Court, if a freelance worker claims to be an employee of a company and asks to be qualified as such, a judge must ascertain whether the worker is actually subject to the employer's orders and directives. For an employment relationship to exist, said orders and directives must be given specifically and repeatedly, and the worker must be stably included in the company's organization. Other indicators of the existence of an employment relationship are (i) periodically receiving a fixed economic consideration, (ii) the existence of an exclusivity clause in the freelance worker's contract, (iii) the use of tools, devices and email accounts provided by the company, (iv) the existence of fixed working hours and (v) the performance of working activity in the employer’s premises.

Reduction of an employee's total compensation

Under Italian laws, except in some specific cases (e.g., a demotion agreement executed to avoid dismissal), an employer cannot unilaterally reduce an employee's salary and overall compensation, and the employee's consent is always needed.

The Italian Supreme Court ruled that — even if the employee's duties do not change or the employee is lawfully demoted — an agreement by which the employer and the employee decide to reduce the employee's total compensation is null and void, unless it is ratified before a "protected venue" (i.e., a conciliatory board, a trade union conciliatory committee, a labor inspectorate or a labor court).


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