Contributed By aldocalza - employment and labor law firm
Article 17bis of Legislative Decree No 241/1997, Amended by Article 4 of Law No 157/2019
Principals are bound to request from a (sub)contractor the documents that prove the payment of withholding taxes related to employees involved in the services (sub)contracted, if the service agreement provides:
If the (sub)contractor does not provide the mentioned documents or has not paid the withholding tax, the principal must interrupt the payment of the compensation accrued by the (sub)contractor (within certain limits provided by the law) and notify it to the competent tax authority.
In cases of breach, the principal is subject to the same fine imposed on the (sub)contractor.
Article 47bis – 47octies of Legislative Decree No 81/2015, Introduced by Law No 128/2019
The Italian government has introduced a set of rules aimed at granting a minimum level of economic and legal treatment for the self-employed who deliver goods in the interest of third parties by bike or scooter within urban areas, if the working activities are performed through the usage of digital platforms.
The Wage Integration Fund for COVID-19 Emergency
The Italian government introduced a new wage integration fund to face the economic crises connected to the COVID-19 emergency; employers can benefit from the fund for nine weeks (this duration has been increased by a further nine weeks), plus four additional weeks in the regions most affected by the virus (Lombardy, Veneto, Emilia Romagna) in the period between 23 February 2020 and 31 October 2020 (a further increase in the duration of the fund is currently under discussion).
According to a new Decree, in force since 15 August 2020, (Decree No 104/2020), employers can benefit from an additional 18 weeks of access to the wage integration fund in the period between 13 July 2020 and 31 December 2020. An additional contribution of 9% or 18% of the total remuneration that would have accrued during the hours of suspension or reduction of activity shall be paid, respectively, by employers who had a reduction in turnover in the first half of 2020, compared to the first half of 2019, of less than 20% or less than or equal to zero. No additional contribution, on the other hand, is envisaged for employers who have had a reduction in turnover in the first half of 2020, compared to the first half of 2019, of 20% or more.
Conditional on the approval by the European Commission, which at the date of writing this text (August 2020) has not yet been given, employers who do not benefit from the additional 18 weeks of wage integration fund and who, in May and June 2020, have benefited from the wage integration fund, will be given a total social contribution exemption (excluding national health and safety insurance contributions) for a period not exceeding four months, available by 31 December 2020 and within the limit of twice the hours of the wage integration fund used in May and June; the same exemption is also granted to employers who have benefited from wage integration fund after 12 July 2020.
The COVID-19 Company Committee and Other Health and Safety Measures
Employers must build a committee (composed of an employer’s representative and trade union representatives) that is aimed at controlling the fulfilment by the company of the mandatory health and safety rules approved by the Italian government for limiting the further spread of COVID-19.
In this respect, during this emergency period, several measures have been approved by the Italian government for the purpose of limiting social contact and decreasing the spread of the virus. These include, inter alia:
The Banning of Collective Dismissals and Individual Dismissal for Business/Objective Reasons
Article 46 of Legislative Decree No 18/2020 banned collective dismissals and individual dismissal for justified objective reason for 60 days from 17 March 2020 to 17 May 2020 (the period has been postponed up to 17 August 2020), except for the case of the dismissal of an employee with executive status (so-called dirigenti). The collective dismissals procedure started on 23 February 2020 has been suspended for the same period.
According to the above-mentioned Decree No 104/2020, the period of ban has been further postponed to 31 December 2020 for most companies, according to the following rules:
The Postponement of Fixed-Term Contracts
Employers have been allowed to postpone or renew, without any of the reasons required by the ordinary legislation, fixed-term contracts up to August 30. The same postponement or renewal has been allowed, by 31 December 2020, for a further period up to 12 months according to Decree 104/2020.
Under Italian law (Article 2095 of the Italian Civil Code or ICC) there are four categories of employees:
Distinction between Blue-Collar and White-Collar Work
The collective bargaining agreement applied by the employer (if any) provides for subcategories/levels (generally with regard to blue and white-collar work).
This distinction, however, has being losing importance. Currently, most national collective bargaining agreements (NCBAs) introduce a unified system of classification for blue and white-collar workers. Irrespective of the above, certain differences are still in place with regard to the legal and economic treatment granted to each category (eg, blue-collar workers are still paid on a daily basis while the salary of white-collar workers is calculated on a monthly basis; and in certain sectors the sickness indemnity for white-collar workers is charged, in whole or in part, to their employer, while the one for blue-collar workers is fully reimbursed by the Italian Social Security Contribution Institute (INPS).
Open-Ended Full-Time Employment Agreements
No-formal requirements are set forth by the law, and the parties can also execute the agreement orally, except for certain cases provided by the law (eg, maritime employment agreements).
However, employers are required to provide, in written form, certain information to the employee within 30 days from the hiring (eg, parties, workplace, starting date, category, remuneration, working-time, etc).
Moreover, Italian law provides that certain covenants must be agreed in written form before the hiring and if the parties do not respect the mandatory form the relevant covenant is null and void (eg, probationary period covenants and non-competition covenants).
Terms and conditions of the employment relationship
Generally, the main terms and conditions, from a legal and economic standpoint, of the employment relationship are set forth by the NCBA applied by the employer. The parties must not worsen the employee’s position by agreeing covenants that derogate from the mentioned minimum treatment.
If the employer does not apply any NCBA the minimum treatment is provided by the Law (eg, the ICC, Legislative Decree 66/2003, Legislative Decree 23/2015, etc).
Fixed-Term Employment Agreement
Fixed-term employment agreement must be agreed in written form before or at the date of hiring (a copy of the signed agreement must be delivered to the employee within five days from the hiring).
An employment relationship could be subject to a term if the relationship lasts no more than 12 months. The fixed-term relationship may have a longer duration (within the limit of 24 months) only if one of the following requirements is met:
Fixed-term agreements can be extended freely during the first 12 months of duration; if, as a consequence of the extension(s), the relationship lasts more than 12 months the extension is lawful only if the duration of the relationship does not exceed 24 months and one of the above-mentioned “requirements” is met.
Italian Law allows a maximum of four extensions.
Renewals of fixed-term employment agreements can be agreed by the parties after a mandatory interruption (ten days if the length of the relationship does not exceed six months; 20 days in the other cases).
Employers are prevented from hiring employees under a fixed-term agreement in certain cases (eg, replacing employees on strikes, hiring in production units where collective dismissals have been implemented or wage integration funds have been applied in the previous six months, or if the employer did not carry out the risk assessment evaluation pursuant to health and safety legislation).
The entire relationship between the same employer and the same employee cannot exceed 24 months for the execution of the tasks and duties of the same category (and subcategory/level if applicable).
This limit takes into account renewals, extensions, previous fixed-term employment agreements (including those that occurred a long time before) and previous fixed-term temporary-work relationships (including those that occurred a long time before).
Certain exceptions to this limit are provided by the law and by collective bargaining agreements.
Maximum number of fixed-term employees
The number of fixed-term employees cannot exceed 20% of the number of an employer’s open-ended employees in force on 1 January of the relevant year (derogations are provided by the law and by NCBAs). The violation of this limit does not trigger the conversion of the fixed-term agreement into an open-ended agreement, only the application of a fine.
Fixed-term employees with seniority in a company of at least six months have a priority right if, after the termination of the relationship, the employer hires open-ended (and in certain cases fixed-term) employees for the same tasks and duties.
The violation of the mandatory rules triggers the conversion (by a court) of the fixed-term contract into an open-ended contract; in addition, employers are sentenced to pay a lump-sum ranging from two to twelve months' worth the employee’s salary.
An employee’s working-time is subject to the regulation set forth by collective bargaining agreements applied by their employer.
If the employer does not apply any collective bargaining agreements, the working time is regulated by Legislative Decree 66/2003, according to which:
The violation of the listed rules could trigger the application of administrative or criminal sanctions.
Exceptions to the listed rules are provided by the law with regard to certain individuals (eg, executives, middle managers).
Parties may agree three types of part-time employment agreements:
Part-timers could be hired under an open-ended employment agreement as well as a fixed-term employment agreement.
Part-time contracts must be executed in written form so as to be evidenced.
In the agreement the parties must indicate the calendar of the part-timer’s working activities.
The parties may agree on a so-called elastic covenant, according to which the employer could require the part-timer to perform his or her tasks and duties:
The terms and conditions of the so called elastic covenant are set forth by the NCBA applied by the employer.
Employers who do not apply an NCBA may agree the elastic covenant with a part-timer on the conditions provided by the law (eg, a two-day notice for the new working-time and special remuneration).
According to the Italian Constitution (Article 36), employees are entitled to receive a salary that is proportionate to the quality and quantity of their working activities and, in any case, sufficient to allow them (and their family) to have a free and dignified existence.
According to main decisions of the Italian Supreme Court, the Constitutional wage is equal to the minimum wage provided by the NCBA for the business sector in which the employee is employed.
Therefore, employers are not allowed to pay a salary lower than the Constitutional wage/minimum wage provided by the NCBA; if this mandatory rule is violated, an employee is entitled to obtain payment of his or her outstanding salary.
This mandatory rule is also applicable also to employers who do not apply any NCBA (they are obliged to grant their employees the minimum wage provided by the NCBA of their business sector).
The minimum wage is different from NCBA to NCBA and depends on the category and subcategory/level of the employee (generally, NCBAs provides an increase of salary that depends on the length of service of the employee).
NCBAs provide the number of instalments in which the salary should be paid. According to Italian law, this number cannot be lower than 13.
Employers are free to grant their employees a so called superminimum (ie, a portion of the salary exceeding the minimum wage); the superminimum could absorb (totally or partially) possible increase of the minimum wage provided by the NCBA (absorbable superminimum).
In addition to the minimum wage, NCBAs provide special indemnity related to specific tasks performed by the employee or indemnify the employee from uncomfortable working conditions (also with regard to the working-time).
In addition to the salary, employers may grant employees company tools for the execution of their tasks and duties; if these tools are also used for personal purposes, the value of the usage for personal purposes is part of the employee’s remuneration.
Employers are not obliged to grant their employees with bonuses (however different provisions could be provided by the NCBA applied).
Employees are entitled to a mandatory period of paid holiday, the length of which is quantified by the NCBA applied by the employer. This period cannot be less than four weeks per year, two weeks should be taken by the employee during the year of accrual and the remaining two should be taken within 18 months following the year of accrual.
Employers are not allowed to pay an indemnity in lieu of the holidays accrued and not taken with regard to the minimum period set forth by the law except in the case of termination of the employment relationship.
Mothers are entitled to abstain from work for a five-month period; the (paid) leave shall begin not earlier than two months before the estimated date of childbirth and shall end not earlier than five months after the date of childbirth.
During their leave, mothers are entitled to receive the payment of an indemnity from INPS, equal to 80% of their salary. Generally, NCBAs oblige the employer to pay an amount equal to the difference between the employee’s full salary and the amount of the indemnity.
With regard to births occurring in 2020, fathers are entitled to paid leave of seven (continuous or not) days that must be taken within five months from the birth. In addition, fathers may benefit from one additional day of (paid) leave, if the mother waives one day from her maternity leave.
In certain cases provided by the law, fathers can benefit from the same treatment granted to mothers (eg, death or serious illness of the mother, or mother's abandonment of the child).
Adoptive parents are entitled to the same rights granted to birth parents.
Employees are entitled to benefit from a period (continuous or not) of parental leave during the first 12 years of the child’s life, equal to six months for each parent.
The parents cannot benefit from a total period of parental leave of longer than ten months for each child (exceptions are provided by the law).
Employees are entitled to receive from INPS the payment of an indemnity equal to 30% of their salary for the days of leave taken within the first six years of the life of the child (for a maximum of six months per child).
Other particular leaves are granted by the Law and NCBAs to employees with or without parental status (eg, for breastfeeding breaks, a disadvantaged or sick child, study leave, marriage breakdown, donation of blood, elections, and trade unions activities).
Leaves/breaks connected to disadvantaged status
Italian law grants leave and breaks to both disadvantaged employees and employees who have the custody of disadvantaged individual(s), the conditions, limits and durations of which are provided by the Law (eg, Legislative Decree 151/2001 and Law 104/1992).
According to Article 38 of the Italian Constitution, employees have the right to be granted adequate means of subsistence in the event of illness or injury. Furthermore, Article 2110 of the ICC recognises the right of the sick or injured employee to maintain his or her job for a period of time set forth by the NCBAs (guaranteed sick leave).
Only after this period has elapsed the employer can terminate the relationship.
The existence of the sickness status must be certified by a doctor of the Italian health system; employers can check the effectiveness of the sickness only through this system.
During their sickness leave employees are entitled to receive an indemnity provided by INPS or by their employer in the cases set forth by the law (eg, where they are executives, middle managers and white-collar workers in the manufacturing sector). NCBAs could provide different provisions (usually an addition to the indemnity that grants the employee a total indemnity equal to his or her normal salary).
During the employment relationship the ICC obliges employees to carry out their duties with loyalty (this obligation includes non-disparagement and confidentiality obligations).
The breach of these loyalty obligations may trigger the dismissal for just cause.
After the termination of the employment relationship, employees are subject to criminal sanction if they disclose confidential information of their employer (as defined by the Italian Criminal System) and can be bound to non-disparagement and confidentiality obligations (also regarding information other than the “confidential” ones defined above) only if agreed with the employer (also at the time of the hiring).
According to the ICC, employees cannot act in competition with their employer during the employment relationship (breaches of this obligation may trigger a dismissal for just cause).
After the termination of the employment relationship (for whatsoever reason), employees can be bound to non-compete obligations only if a specific agreement aimed at this has been agreed with the employer.
Non-competition clauses/agreements must:
It is a common practice to agree in the covenant to a penalty in case of breach of the non-competition obligations; however, the existence of the penalty does not prevent the employer from claiming additional damages in front of a court. In the judicial proceeding, the employer could ask the court to inhibit the former employee from continuing with their unlawful behaviour.
In general, Italian law does not regulate non-solicitation clauses and the mandatory rules provided for non-competition clauses do not apply to solicitation. However, according to the Italian courts, the clause must be agreed in written form (also in the employment agreement) and the employee is not entitled to receive any remuneration for the obligation.
Employers may process employees’ personal data for the sole purpose of the execution of the employment relationship; the collection and retention of the data must be implemented in accordance with EU Regulation No 679/2016 (the GDPR) and Italian legislation (Legislative Decrees No 101/2018 and No 51/2018, etc).
Employers (the data controller) must provide employees with the following information:
In addition, employers must provide the following information:
The privacy laws provide the cases in which the consent is not necessary.
Employers must be able to demonstrate that employees have consented to the processing of their personal data (the consent must be specific, informed and unequivocal).
The data controller (or its representative) must keep a record of the processing operations carried out under his or her responsibility.
The fulfilment of the mandatory rules on privacy allows the employer to control the tools used by the employee for carrying out his or her tasks and duties (eg, emails, computer and phone) to the extent that the employer has informed its employees on the conditions of usage of the tool and how the power of control is exercised by the employer over the tools (if the mentioned conditions are not met, the employer cannot use the data unlawfully acquired).
EU citizens can freely move, establish themselves and work in any EU member state, while non-EU citizens are subject to immigration procedures.
Mandatory provisions and procedures are provided by the law in cases of secondment by an EU employer of employees to Italy.
The hiring of non-EU employees is allowed on condition that the entry and residence requirements established by the Italian Immigration Law are complied with (a special procedure must be implemented for hiring non-EU employees who are not resident in Italy).
EU citizens do not need visas or work permits and must register themselves only if they establish themselves in Italy for a period longer than three months.
Non-EU citizens can be employed in Italy only if in possession of a residence permit or a visa for working purposes. The entrance into Italy of non-EU citizens is strictly governed by the law, which allows the entrance only of a certain number of individuals from each non-EU country each year, as authorised through a Ministry Decree.
Under the Italian Constitution (Article 39), trade unions activity is free and protected; individuals, therefore, are free to join a trade union, to fund a trade union and to perform trade union activities.
Trade unions have a key role in the regulation of the employment relationship, a role that is chiefly exercised through collective bargaining agreements that provide a “minimum standard” of economic and legal protection for employees that cannot be derogated from by employers.
As a consequence of the freedom to fund trade unions, in any business sector there are different trade unions (the multiplication of trade unions triggers the multiplication of collective bargaining agreements in the relevant business sector).
The effectiveness of trade unions' constitutional rights is protected through a special judicial procedure in case of employers’ anti-union behaviour (governed by Article 28 of Law 300/1970).
The existence of employee representative bodies in the workplace is a consequence of the freedom to perform trade union activities, which is granted by the Italian Constitution.
Particular rights are granted to a qualified employee representative body built in accordance with Article 19 of Law 300/1970, a so-called rappresentanza sindacale aziendale (RSA) (however, employees and trade unions are free to build representative bodies different from an RSA; in that case, the relevant body is not entitled to exercise those rights granted by law only to RSA).
Starting from 1993, the rights granted by law to the RSA have been granted also to another kind of employee representative body: the rappresentanza sindacale unitaria (RSU).
Differently from the RSA, which is a representative of one specific trade union, the RSU is an elective representative body (the number of members depends on the dimension of the employer) which represents all the trade unions that have participated in the relevant election.
The conditions required by the law for the creation of an RSA and an RSU are different, therefore, it is possible for there to be, within the same employer, RSAs that represent certain trade unions and an RSU that represents other trade unions.
RSAs and RSUs can be created only within employers that employ more than 15 employees (or 5 employees in the case of an agricultural employer).
Pursuant to Article 19 of Law 300/1970, within each employer's production unit, RSAs may be created upon the initiative of the employees by trade unions that sign a collective bargaining agreement (of whichever level: national, local or company) applied by the employer.
The Italian Constitutional Court has extended the right to create an RSA also to trade unions that have actively participated in the negotiation of the collective bargaining agreement(s) applied, irrespective of their effective signature of that agreement.
Employers who do not apply an NCBA are not obliged to recognise RSAs; however, if they recognise it on a de facto basis, the RSA is entitled to exercise all the rights granted by the law.
These may be established (within each employer's production unit) by trade unions that:
The number of components is equal to:
The member of the RSU are appointed through an election organised within the relevant employer’s production unit.
Law 300/1970 grants certain rights only to RSAs and RSUs, these include:
An agreement may be qualified as collective bargaining agreement upon the condition that at least one party is a trade union (on a national, local or company level).
Collective bargaining agreements can be classified into the following levels: confederation level agreement, national level and local level (the last one also includes agreements executed at company level).
Collective bargaining agreement are generally formed by rules that can be classified as follows:
In some cases, collective bargaining agreements are required by law to regulate certain aspects of the employment relationship (eg apprenticeships, fixed-term agreement, part-time, working-time and notice period).
The rules set forth by the collective bargaining agreements are a “minimum standard” that can be derogated from by employers only if they grant better treatment to their employees.
Generally, NCBAs last three years; often the agreement sets out the provisions for regulating the period between the expiring date of the previous NCBA and the starting date of the new one.
Except for certain cases (eg, domestic workers, executives and employees under a probationary period), employees under an open-ended employment agreement can be lawfully dismissed for:
Employers must communicate the dismissal in writing and must communicate to the employee the reasons for the dismissal.
The dismissal of an executive is subject to different rules provided by the NCBA applied by the employer.
Collective dismissals (ie, the dismissal of five or more employees during a 120-day period served by an employer that employs more than 15 employees) are governed by Law No 223/1991.
The employer must comply with a mandatory procedure that triggers, inter alia:
Failing to comply with the mentioned procedure triggers the unlawfulness of the dismissal.
A previous notice period is due by the withdrawing party in any case of termination of an employment relationship, except if termination is:
The length of the notice period is provided by NCBAs and depends on the category/subcategory/level of the employee, the length of service and if the termination is due as a consequence of dismissal or resignation (generally in case of resignation, NCBAs provide for a shorter notice period).
If the withdrawing party terminates the relationship without giving (totally or partially) the mandatory notice period, the counterparty is entitled to receive an indemnity in lieu of notice period (the amount of which is equal to the salary that the employee would have received during the notice period).
In any case of termination, employers are obliged to pay employees the severance payment accrued by the employee during the employment relationship; the main severance payment (the trattamento di fine rapporto or TFR) is governed by Article 2120 of the ICC and the applied NCBA (the amount is roughly equal to 7.4% of the remuneration paid to the employee during the employment relationship). Employees are also entitled to receive other minor severance payments (eg, the supplementary monthly instalments accrued on a pro rata basis, or for holidays and leave accrued and not taken)
In cases of dismissal for just cause and justified subjective reasons employers must deal with a mandatory procedure governed by the law and respect the following rules:
Failing to comply with the mentioned mandatory procedure triggers the unlawfulness of the dismissal.
Employment relationships may terminate by mutual consent, as in the case of a resignation. The employee must communicate the termination through a specific website made available by the Public Labour Office (the breach of this mandatory rule triggers the continuation of the employment relationship).
A particular procedure is set forth by the law for protecting mothers and fathers (ie, pregnant employees and parents of a child under the age of three): the mutual termination must be confirmed by the employee in front of the Labour Office (and not communicated through the website).
Generally (although it is not mandatory), a termination by mutual consent of an employment relationship is agreed in the frame of a settlement agreement executed by the employer and the employee, in which the parties reciprocally waive any claim related or connected to the execution and termination of the employment relationship.
According to Article 2113 of the ICC, settlement agreements (and the relevant waivers) executed by employees are null and void, and the relevant employee may therefore challenge the unlawfulness of the settlement agreement within six months starting from the termination of the employment relationship (in cases of execution of the settlement agreement during the employment relationship) or starting from the date of execution (in cases of execution of the settlement agreement after the termination of the employment relationship).
The above provision is not applicable if the settlement agreement is executed in front of certain subjects (eg, courts, the Labour Office, settlement committees formed in accordance with the relevant NCBA, or authorised subjects).
If the employee does not challenge the lawfulness of the settlement agreement within the mentioned period of six months or the settlement agreement is executed in front of the mentioned subject, the settlement agreement becomes binding and unchallengeable.
Italian law provides strict regulation to prevent employers’ discriminatory behaviours and to protect certain vulnerable categories of employees from possible discrimination.
In particular, the following forms of dismissal are null and void:
Particular limitations are also provided by the law in case of dismissal of disadvantaged employees during their probationary periods or in case of worsening of their working capability.
The effects of a dismissal served to employees on sickness leave are postponed until the termination of the sickness, except in the case of dismissal grounded on a just cause.
In cases of unfair dismissal, employees are entitled to different forms of protection that depend on
Dismissal Grounded on Discriminatory/Retaliatory Reasons
If the court ascertains the discriminatory/retaliatory nature of the dismissal, the dismissed employee is entitled to reinstatement in his or her previous position (alternatively to this reinstatement, the employee, at his or her sole discretion, may ask for the payment of an indemnity in lieu of reinstatement equal to 15 months of his or her salary).
In addition to the reinstatement, the dismissed employee is entitled to receive the payment of the outstanding salary from the date of the dismissal until the day of reinstatement (minimum five months of global salary), plus the payment of the relevant social security contributions.
This protection is granted to employees with or without executive status, irrespective of the date of hiring and the number of employees employed by the employer.
In cases of unfair dismissal, executives are entitled to the protection granted by the NCBA applied (the payment of an indemnity the amount of which depends on the company’s seniority and the executive’s age).
Employers with More Than 15 Employees
The protection granted by the law to employees depends on the hiring date.
Employees hired before 7 March 2015 are entitled to the following protection regime:
Employees hired starting from 7 March 2015 are entitled to the following protection regime:
Employers with 15 or Fewer Employees
Employees are entitled to receive an indemnity ranging from two and a half to six months of salary of the employee (if the employee has been hired starting from 7 March 2015 the indemnity ranges from three to six months of salary).
The indemnity is increased up to ten or 14 months of salary for employees with long (ten or 20 years) company seniority, if hired before 7 March 2015.
Pursuant to Article 15 of the Law 300/1970, employees may not be discriminated against on the basis of their race, gender, language, beliefs (political, religious, etc), age, sexual orientation or disadvantaged status.
Any action implemented by the employer in breach of the above mandatory rule is null and void and the employee is entitled to restoration for financial and non-financial damages (the burden of proof related to the discrimination and the damages suffered are both entirely on the employee).
Judicial claims related to employment relationships are subject to a special procedure and are tried in front of specialised courts or court sections.
No class action procedure is applicable in the case of employment issues; however, a proceeding could be brought by a multitude of claimants.
According to the Italian Civil Procedure Code (ICPC) the ordinary employment judicial proceeding starts when the claimant files his or her legal summons in front of the court; the defendant must file his or her defences ten days before the date of the hearing scheduled by the court (the breach of this term triggers serious consequences for the ability of the defendant to defend him or herself).
During the first hearing, the court tries to settle the dispute.
Generally, labour judicial procedures are quicker than the ordinary civil judicial procedures.
The final ruling may be challenged in front of a competent Court of Appeal (whose decision may be challenged in front of the Supreme Court).
Special procedures are applicable in case of:
Parties can lawfully have recourse to arbitration only if this faculty is allowed by the law or the NCBA applied.
This form of alternative dispute resolution is very uncommon in Italy, except in the case of an employee who challenges the sanction (different from the dismissal) applied by the employer at the end of the disciplinary procedure.
According to Article 91 of ICPC, the judge, in his or her final statement can order the unsuccessful party to pay the counterparty an amount as reimbursement of legal expenses.
In the case of a settlement agreement, it is general practice that the employer reimburses the legal expenses suffered by the employee.