EMPLOYMENT LAW

Italian employment fixed term agreements:

Since May 2014, the maximum duration of fixed-term employment contracts is 36 months.

Employers can freely enter into fixed-term and supply contracts for the entire duration of the 36 months (maximum) without providing any written reason.

Excluding “dirigenti” (i.e. senior managers), who may enter into a maximum five-year fixed-term contract, this norms apply for any sort of employees.
In the fixed-term contract the duration and expiration date must be indicated in writing, if not then it is automatically considered as a permanent employment agreement.
A 20% limit/ceiling number on the use of fixed-term contracts has been introduced, calculated upon the number of permanent employees in force on January 1st of the year of hiring.
Please note that companies employing up to five employees are only able to hire one fixed-term worker.

During the fixed-term relationship a maximum of five extensions are possible within the overall limit of 36 months, regardless of the number of renewals, and on condition that they relate to the same work for which the contract was signed at the beginning.

Law no. 78/2014, also provides the right for fixed-term employees exceeding six months to be treated with “priority” in case of permanent hiring by the company after the final term of their fixed term employment contract.

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