New laws and regulations

Reimbursements for electric cars are taxable  

The Italian Revenue Agency clarified that if an employer reimburses the expenses borne by an employee to buy electricity to charge an electric car used both for private and business purposes, the relevant amounts must be fully taxed, with no possibility to apply any tax discount.

Right to discovery during disciplinary proceedings

The Italian Data Protection Authority sanctioned a company that did not provide all the documentation supporting a disciplinary issue raised against an employee who was later dismissed for just cause. According to the Authority, under GDPR regulations, an employer has the obligation to provide the employee with all the data collected in the relevant investigative leading to the disciplinary procedure, even those that were not eventually used in the same. The reason for this being that the employee must be in the position to defend themselves. An unjustified denial to access the data would also be in breach of the general principle of fairness. The employer, in its quality of data controller, is therefore required to provide access to the employee’s personal data in a complete and up-to-date form, also indicating the origin of the data themselves.

Case law developments

Partners are also entitled to leave to care for disabled partner

The Italian Constitutional Court ruled that the right to leaves of absence, to take care of a disabled spouse, must be extended also to partners, not legally bound by any marriage or civil union arrangements. According to the Court, the situation of two individuals with a stable and lasting union, who freely choose to enter into a relationship, is comparable to that of a married or civilly united couple and therefore have a right to care-giving.

Protections against retaliation for whistleblowers  

In April 2023, Italy implemented the EU Whistleblowing Directive implementing new protections against retaliation for whistleblowers in companies employing at least 50 employees (read more about these new provisions here). The Labour Court of Milan recently ruled that the new protections (including dismissal) apply only to reports submitted from 15 July 2023 onwards, when the domestic legislation entered into force.

Transfer for “environmental incompatibility”

Pursuant to Italian law, an employee can be unilaterally transferred and relocated when the relations with their direct coworkers generate business disruption in the workplace where the employee performs their activities. However, according to a recent ruling by a territorial labor court, the employer is required to prove that the issues at the workplace were caused by the employee’s presence.