Thanks to major innovations in technology and communication, a lot of organizations have been looking beyond geographical boundaries to find new talent. When it comes to a global talent pool, Italy is surely one of the top choices for a lot of employers all around the world. However, before you hire new employees in Italy you have to set up your own local entity and go through a lot of government regulations. Sounds tough right? But not when you have an EOR Italy with you. It provides you with everything you need to hire new workers from Italy or anywhere else in the world. In this guide let’s take a deeper look into why you need to partner with an EOR in Italy and how it is going to benefit you in the long term.
Table of Contents
- Overview of Italy
- What is an Employer of Record in Italy?
- EOR Italy vs Legal Entity
- Use Cases for EOR in Italy
- Laws and Compliance to Hire Employees in Italy
- Best EOR Companies in Italy
- What EOR Services are Offered in Italy?
- How to Hire Employees Through an EOR Italy Partner
- Remote EOR Employee Onboarding Checklist for Italy
- Taxes in Italy
- CTC Calculator for Hiring Employees in Italy
- Key Considerations While Hiring Employees through EOR in Italy
- Employee Benefits in Italy
- Termination Procedures in Italy
- How to Choose the Right EOR Italy Services
- Benefits of Working with an EOR Service Provider in Italy
- Risks and Drawbacks of EOR in Italy
- How Does Employer of Record Italy Differ from Traditional HR Software?
- How Much Does It Cost to Avail EOR Services in Italy?
- Conclusion: EOR Italy
- FAQs – EOR Italy
Overview of Italy
Did you know that Italy itself boasts the highest number of UNESCO World Heritage Sites in the world? Well, it stands at a total of 58 recognized sites. As an EU member and due to its strategic position between countries such as Switzerland, France, and Austria entering the Italian market is a gateway into a larger economy. The country also has a very robust market driven by its 61 million population. Italy is considered to be the manufacturing hub, where the most profitable investments tend to occur both domestically and internationally in sectors such as automation, machinery, fashion, etc.
Just as Italy’s rich heritage draws almost millions of visitors annually, its skilled workforce and dynamic economy are constantly attracting new organizations to expand its global footprint. Italy is also considered to have certain business cities such as Bologna, Rome, Milan, and Turin. However, any organization that wishes to expand into the Italian market must follow all of the Italian labor laws and work on creating contractual employment agreements. This is where you might want an EOR in Italy providing you with its assistance.
Why Italy for Expansion?
- Access to the EU market: Italy’s membership in the EU provides access to a single market of over 500 million consumers.
- Rich Cultural Heritage: Italy’s rich cultural heritage attracts tourists from around the world, boosting the tourism industry.
- Government Incentives: The Italian government offers various incentives to attract foreign investment and stimulate economic growth.
- High-Quality Lifestyle: Italy offers a high quality of life, with beautiful cities, delicious food, and a rich cultural heritage.
What is an Employer of Record in Italy?
An employer of record is one of the perfect ways to access the Italian workspace without having to set up a subsidiary unit. It also has a lot of benefits associated such as eliminating the need to create a separate entity, opening up time and money to concentrate on other facets of growth plans, and also simplifying legal compliance.
Especially when you have an EOR Italy that is skilled enough with a lot of experience company expansion could become cost-saving and a quicker process. You don’t need to create a separate team that is responsible for the workforce management processes. Although a lot of organizations may still want to open a new organization to engage their personnel it results in obstacles such as more time consumption.
When you work with an employer of record Italy will save you a lot of time in the whole recruiting process which also includes tax management, payroll processing, and similar processes.
EOR Italy vs Legal Entity
It is not uncommon for a lot of people to opt for a legal entity in Italy over an EOR Italy. However, they are suitable only in a few circumstances. So based on your requirements, you might want to make a final decision. To assist you in the same, here are a few differences highlighted between an EOR Italy vs legal entity.
Feature | EOR Italy | Legal Entity Italy |
Setup Time | Relatively quick and easy | Time-consuming and complex |
Cost | Lower initial costs, ongoing fees | Higher initial and ongoing costs |
Legal Compliance | EOR handles compliance with Italian labor laws | The company assumes full responsibility for compliance |
Control Over Operations | Less control over day-to-day operations | Full control over operations and decision-making |
Tax Implications | EOR handles payroll taxes and social security contributions | The company is responsible for handling taxes and social security |
Brand Presence | Limited brand presence | Stronger brand presence and local market perception |
Risk | Lower risk of non-compliance | Higher risk of non-compliance and legal issues |
Flexibility | Easier to scale up or down operations | Less flexible, requires more time and resources to scale |
Market Entry | Faster market entry | Slower market entry |
Administrative Burden | Reduced administrative burden | Increased administrative burden |
Use Cases for EOR in Italy
An employer of record services is for those organizations who do not have a legal entity in Italy but want to hire locally. The entire liability and employment in Italy will totally be laid upon an EOR. Apart from this, there are various circumstances in which an EOR Italy is very important. Here are a few of those circumstances.
Entering an Italian Market
Companies that are looking to expand into an Italian market could establish their presence without having to worry about a legal entity. By partnering with an EOR in Italy businesses could indulge in hiring local talent, comply with the Italian labor laws, and also establish a very strong foothold in the Italian market.
Remote Hiring
For organizations with remote workers in Italy, an EOR could help streamline the hiring process while ensuring compliance with all the Italian labor laws and handling payroll, taxes, and benefits. This allows the organizations to be at the top with the unique range of talent pool and that too all without needing a physical presence.
Employee Conversion
If an organization would like to convert its employees into a freelancer or vice versa, they can use an EOR in Italy to help them with the same. The EOR could handle all the nitty gritty of hiring and converting an employee or a freelancer while ensuring compliance with all local regulations.
Global Recruitment
Companies can now hire international talent for roles that are hard to fill via an EOR Italy. The EOR will handle the hiring process along with the visa and permit applications. This allows the companies to attract top talent from all around the world while ensuring they get a very strong global workforce.
Laws and Compliance to Hire Employees in Italy
Whenever you try to hire in an unknown land such as Italy where you might not have a hold prior to this hiring, you might want to get a thorough understanding of the local labor laws and regulations. Here is all you need to consider as a part of the laws and compliance to hire employees in Italy.
Employment Contracts
It is legally required to put down a strong employment contract in place in Italy that mentions everything about the employee’s compensation, employee level, benefits, PTO, notice period, probationary period, and other requirements. It should also state everything about the salary and the compensation amount in gross Euros rather than an alternate currency.
Social Security
Employees and employers usually contribute to social security, which provides a lot of benefits such as healthcare, pension, and disability insurance.
Working Hours and Overtime
The normal workweek for an employee usually consists of 40 hours and if there is overtime being included then the following rules will be applied.
An employee who exceeds their overtime by 6 hours per day is entitled to a rest break.
The middle manager level is entitled to about a 30% hourly increase for working on holidays or Sundays however additional pay for working on Saturdays. Overtime does not apply to executives in Italy.
Salaries workers are entitled to a 15% hourly increase in their wages in case of 8 hours or less of overtime a week. A 20% increase for 8+ hours in a week and 30% for holidays and Sundays.
Employee Rights
The Italian constitution tends to cover a number of basic employment rights which also include the right to work for fair pay, join a union, receive social security, and have access to equal opportunities. Other labor law sources include the following:
The civil code tends to state the employment relationship
The worker statute on the other hand tends to handle the protection of the freedom and dignity of the workers, trade union, and union activity in the workplace.
Collective Bargaining Agreements
CBAs also called Collective Bargaining Agreements between trade unions and employers’ associations are quite common in all sectors. National CBAs are only considered to be binding if the organization is a member of the relevant employers’ association. If an organization is not a member it does not have to apply the rules agreed to via CBA.
Suggested Read: EOR India- A Detailed Guide on Employer of Record 2024
Best EOR Companies in Italy
There are several reputable EOR providers that offer services in Italy out of which you can make your own choice. Here are a few of the top options and why you need to choose them:
- Asanify: A leading global HR and payroll platform, Asanify offers EOR services in Italy which also include benefits, payroll, and compliance.
- Deel: A global HR and payroll platform that provides EOR services in Italy. Deel simplifies the hiring process and ensures compliance with local labor laws.
- Remote: A popular choice for remote work, Remote offers EOR services in Italy, helping businesses hire and manage remote employees.
What EOR Services are Offered in Italy?
The EOR providers in Italy typically offer a comprehensive range of services, including:
- Payroll and Tax Administration: You need not worry about payroll processing. Since you get an accurate and timely processing of payroll, including taxes, social security contributions, and other deductions.
- Contract Management: As an EOR partner, they will help you by drafting and managing employment contracts in compliance with Italian labor laws.
- Employee Onboarding: You get a team that will help by facilitating a smooth onboarding process for new employees, including background checks and paperwork.
- Benefits Administration: You get an overall management team that helps by managing employee benefits such as health insurance, pension plans, and paid time off.
- Compliance: Ensuring compliance with Italian labor laws, including working hours, overtime, and minimum wage regulations so that you need not worry about the changing rules.
- HR Support: It helps you by providing HR support services, such as performance management, disciplinary actions, and employee relations.
How to Hire Employees Through an EOR Italy Partner
Navigating through the complicated process of hiring in Italy could be something you might not be a fan of. However, an EOR is here to save your day. All you need to do is find an EOR that is trustworthy and can help you in every way possible. With this, expansion in Italy would no longer be a dream. Here are a few steps you might want to follow to achieve this dream.
Step 1: Decide Between an EOR or a Legal Entity
When considering hiring employees in Italy, you have two primary options: establishing a legal entity or partnering with an Employer of Record (EOR). A legal entity offers full control but requires significant time, resources, and legal expertise. An EOR, on the other hand, provides a more streamlined solution by handling all HR, payroll, and compliance aspects.
Step 2: Choose the Right EOR
Selecting the right EOR is crucial. Consider factors such as the EOR’s experience in Italy, their service offerings, and their ability to handle complex local labor laws. The EOR should be able to automate HR and IT tasks, offer strong customer support, and ensure data security.
Step 3: Onboard Your Employees
Once you’ve chosen an EOR, you can begin the onboarding process. This involves collecting essential information from your new hires, such as their full name, date of birth, contact information, tax code, bank details, and desired salary. The EOR will then draft compliant employment contracts, handle the onboarding process, and enroll employees in social security and benefits programs.
Step 4: Payroll and Compliance
The EOR will manage payroll, including calculating salaries, deducting taxes and social security contributions, and making timely payments. They will also ensure compliance with Italian labor laws, including working hours, overtime, and vacation entitlements. EORs are responsible for filing necessary tax returns and providing employees with the required documentation.
Remote EOR Employee Onboarding Checklist for Italy
Onboarding Step | Responsibility | Details |
Before Offer Letter | ||
Collect Employee Details | Company | Gather necessary details like name, DOB, contact info, address, previous employment documents, etc. |
After Offer Letter | ||
Draft Employment Contract | EOR | Create localized employment agreements compliant with German labor laws and regulations. |
Background Verification | EOR | Conduct background checks with informed consent from the new hire. |
Welcome Email | Company & EOR | Company sends a welcome email; EOR manages the local onboarding process. |
On Joining Day | ||
Employment Documentation | EOR | Ensure all paperwork like contracts, NDAs, tax forms, and other required compliance documents are completed. |
Payroll Setup | EOR | Collect required documents and set up payroll systems, tax calculations, and social contributions. |
Policy Briefing | Company | Explain leave policies, workplace code of conduct, company processes, and procedures. |
Account Setup | EOR | Assist in setting up bank accounts for salary deposits as per German requirements. |
Introduction to Systems | EOR | Provide an overview of payroll systems, HRIS platforms, and other HR tools. |
IT Setup | Company/EOR | Deliver necessary equipment, software access, and IT training for smooth operations. |
Mentor Assignment | Company | Assign a buddy or mentor to help the new hire adapt to company culture and processes. |
Post-Onboarding | ||
Payroll Explanation (First Paycheck) | EOR | Explain payslip components like gross salary, tax deductions, social contributions, and net pay. |
Ongoing Support | Company | Conduct regular check-ins and 1:1 meetings to address concerns, offer support, and share feedback. |
HR Operations | EOR | Manage ongoing payroll processing, statutory compliance, benefits administration, and HR tasks. |
Taxes in Italy
The Italian Revenue Agency is the one who is in charge of overseeing the taxes in the country. The tax year and the calendar year usually run in sync which begins on January 1 and ends on December 31 of every year. A tax payer needs to file the Modello Redditi PF also called Modello 730 form to declare their income. Here’s a detailed table of the tax type and what the rate is currently.
Tax Type | Rate |
Corporate Income Tax (IRES) | 27.50% |
Municipal Tax on Economic Operations (IRAP) | Varies by region |
Withholding Tax (Dividends) | 26% (unless participation exemption applies) |
Withholding Tax (Royalties) | 22.50% |
Withholding Tax (Interest) | 26% |
Payroll Taxes in Italy
Other taxes that you as an employer might have to take a look at include the following:
- Employer Social Security Contributions: Employers are required to contribute to social security, covering pensions, healthcare, and unemployment insurance.
- Employee Social Security Contributions: Employees also contribute to social security.
- Payroll Taxes: Various taxes and levies may apply to payrolls, such as income tax and regional health fund contributions.
Time and Cost Considerations:
While it is quite feasible to start an organization quickly, you still require time to sort out the tax requirements. Here are a few of the considerations that are necessary.
- Time to Prepare and Pay Taxes: Approximately 240 hours per year.
- Time to Start a Business: Approximately 6.5 days.
CTC Calculator for Hiring Employees in Italy
International hiring has surely introduced a whole new set of labor and tax laws that could get complicated and that too quite fast. Asanify however handles all the local benefits, payroll, taxes, and compliance when hiring an international employee from Italy. Even if they make the same salary the cost of employees could vary a lot from country to country which is mainly due to unique tax rates, healthcare requirements a lot of other reasons. We have also estimated the total cost employers could expect while hiring an employee with a gross salary of €50,000 in Italy. Here is an example of the same.
Let’s assume a mid-level employee in Italy has a gross annual salary of €50,000.
Employee Salary Breakdown (Italy)
Description | Amount (€) |
---|---|
Gross Annual Salary | 50,000 |
Employer Social Security Contributions | 15,000 |
Payroll Taxes | 5,000 – 7,500 |
Total CTC | 65,000 – 72,500 |
This is a simplified estimate for understanding purposes. Final costs may vary due to tax regulations, industry-specific rules, and employee location.
Note: Consult with an HR professional or Employer of Record (EOR) for a detailed breakdown and accurate figures.
While this could be an estimate of hiring an employee in Italy, the final costs however may differ from the estimates due to a lot of reasons. Some countries asses tax by income levels while others have caps on total tax, there are also some changes based on particular industries, and some rates hugely vary based on your employee’s region or city.
Also since the currency exchange rates usually fluctuate a lot, salary costs can shift from month to month if you pay in a different currency.
Key Considerations While Hiring Employees through EOR in Italy
Understanding how hiring an employee in Italy works is very important since you need to navigate through salaries, benefits, and compliance. There are also strong protections under Italian employment law so you will need to make a commitment to hiring workers safely and fairly. Here are a few of the considerations you need to take into account while hiring employees through EOR in Italy.
Contracts and Compliance
Italian labor law requires written employment contracts. These contracts must outline specific terms such as salary, working hours, benefits, and termination procedures.
Work Hours and Leave
Understanding Italian labor laws regarding working hours and leave policies is essential. This includes information on standard working hours, overtime regulations, paid leave, and sick leave.
Employee Benefits
Employers in Italy are required to provide certain statutory benefits, such as social security contributions, healthcare insurance, and paid leave. Additionally, companies may offer supplementary benefits, like private health insurance or retirement plans.
Termination Procedure
It’s important to be aware of the specific procedures for terminating an employee’s contract in Italy. This includes understanding notice periods, severance pay, and any potential legal implications.
Employee Benefits in Italy
When hiring employees in Italy, it’s crucial to understand the comprehensive benefits package they are entitled to. Here’s a breakdown of the key benefits:
Statutory Benefits:
- Social Security: This is a mandatory contribution by both the employer and employee to a fund that provides pensions, healthcare, and disability insurance.
- Public Health Insurance: Italy has a robust public healthcare system that provides universal coverage. However, many employers offer supplementary private health insurance to enhance coverage.
Additional Benefits (Often Provided by Employers):
- Life Insurance: Provides financial protection for the employee’s family in case of untimely death.
- Retirement Savings Plans: Employers may offer additional retirement savings plans, often with tax benefits.
- Transportation Benefits: Subsidies for public transportation or company-provided transportation.
Government Benefits:
- Citizenship Income: A government program providing financial support to low-income families.
- Social Allowance: A non-contributory benefit for those with insufficient income.
- Child Allowance: Financial aid for families with children.
- Pensions: Government-backed retirement pensions.
- Unemployment Benefits: Financial assistance for those who lose their jobs.
By understanding these benefits, you can ensure compliance with Italian labor laws and attract and retain top talent in the Italian market.
Termination Procedures in Italy
All employment contracts in Italy must be in writing and clearly outline the terms of employment, including the probationary period. Probationary periods are generally limited to six months for middle managers and executives, but this can vary based on collective bargaining agreements (CBAs).
Termination for Cause
If an employer wishes to terminate an employee for cause, such as breach of contract or misconduct, they must follow a specific disciplinary procedure. This typically involves issuing a formal warning, providing an opportunity to respond, and then issuing a written notice of termination.
Termination for Economic Reasons
If an employer needs to terminate employees due to economic reasons, such as downsizing or restructuring, they must follow specific procedures outlined in applicable CBAs. These procedures may involve consultations with employee representatives and adherence to specific notice periods.
Notice Period and Severance Pay
When terminating an employee, employers must provide a notice period or pay in lieu of notice. The length of the notice period varies based on the employee’s seniority and the applicable CBA.
TFR (End-of-Service Allowance)
Employers in Italy are required to set aside an annual amount equivalent to 7% of the employee’s pay as a severance payment. This TFR is paid to the employee upon termination, regardless of the reason for termination.
By understanding these key aspects of Italian labor law, employers can ensure that they comply with all legal requirements and avoid potential legal disputes.
How to Choose the Right EOR Italy Services
Selecting the right EOR in Italy is considered to be the key to a smooth market entry. However you need to consider few of the factors that might help you to choose the right EOR Italy services. Here are a few of the services that you might want to take a look at:
Expertise
Seek for an EOR in Italy with a strong reputation and a solid track record such as Asanify. Industry recognitions and client reviews could be an indication of their trustworthiness. Checking for these would also help you to understand what do people think about their services and how they operate.
Wide range of services
Ensure that the EOR in Italy that you choose also provides an extensive range of services or can help in customizing their offering so as to suit your business requirements. This may also include applying for work permit and visa assistance, tax compliance, payroll management and navigating through Italy’s tax and labor regulations.
Scalability
Opt for an Employer of Record in Italy that can adjust their services based on how your business goes on expanding. They should also be able to provide support for a growing worldwide workforce and changing business requirements.
Benefits of Working with an EOR Service Provider in Italy
As you can observe there are a lot of benefits when it comes to hiring employees in Italy. Especially when there are various employment regulations to be followed it is a whole lot of work for employers to handle both rules and the management part. So here are a few of the benefits of working with an EOR service provider in Italy.
Simplified entry process
An EOR in Italy tends to navigate you through the complexities of market entry by handling all the detailed tax laws and labor laws which ensures that you remain compliant right from day one. They also help by paying attention to everything from social insurance to overtime pay as well.
Liability and risk reduction
As your legal employer in Italy, an EOR helps minimize any risks that are linked with employment laws ensuring your operations are fully protected and compliant.
Reliable compliance management
Italy’s regulatory environment could be quite challenging however EORs are equipped such that they can ensure that your business stays in line with local tax codes, social security contributions, and labor regulations.
Cost planning and optimization
EOR services are typically more cost-effective as compared to you establishing a new local subsidiary in Italy. This is especially important for smaller teams or temporary projects as it helps you to avoid initial setup costs and continuous administrative burdens.
Risks and Drawbacks of EOR in Italy
As any global employer does, you want to be aware about both the benefits and the potential risks and drawbacks of hiring with an EOR in Italy. Some are inherent to employing abroad and other could be avoided by partnering with a competent EOR solution.
Insufficient flexibility
There are a lot of regulations that you need to follow he EOR model may hence impose tenure limits, employment contract obligations, and restrictions on the tasks a seconded worker could perform. This could negatively impact the workforce’s overall utilization.
Data protection and legal disputes
You are putting a lot of trust into a third party to manage all the sensitive data of your employees. Be certain that your EOR has quite a robust data protection service in place. Otherwise you may end up at a risk of breach or regulatory non-compliance.
Poor employee management
Some of the EORs do boost a rapid setup time however the end up rushing the employee onboarding process which could cause in a fault to occur. That leave the door open to the risk of leaving out the crucial details. They may also neglect other key HR tasks which could erode trust and deter future candidates.
How Does Employer of Record Italy Differ from Traditional HR Software?
An employer of record in Italy usually offers a different solution as compared to the traditional HR software that you use. While the HR software tools helps in automation and streamlining of internal HR processes, an EOR acts as the legal employer taking on the responsibility and liability for the employment related tasks. Here’s a table that helps outline all the difference between EOR and an HR software.
Feature | Employer of Record (EOR) Italy | HR Software |
Legal Employer | Acts as the legal employer of record for your employees in Italy. | Does not act as the legal employer. Your company remains the legal employer. |
Compliance | Assumes full responsibility for compliance with Italian labor laws, tax regulations, and social security obligations. | Provides tools to help manage compliance but does not assume legal responsibility. Compliance remains with your company. |
Payroll Processing | Manages all aspects of payroll, including salary calculations, tax withholdings, social security contributions, and reporting. | Automates payroll calculations and reporting but requires your company to handle tax remittances and legal compliance. |
Benefits Administration | Manages employee benefits such as health insurance, pension plans, and other statutory benefits in accordance with Italian law. | May offer benefits administration modules but does not typically handle legal compliance or act as the benefits provider. |
Onboarding/Offboarding | Handles all aspects of employee onboarding and offboarding, including contracts, background checks, and termination procedures. | Provides tools for managing employee data and onboarding workflows but does not handle legal employment aspects. |
Risk Management | Mitigates employment-related risks by ensuring compliance and handling all legal responsibilities. | Does not mitigate legal risks; these remain with your company. |
Local Expertise | Provides deep expertise in Italian employment law, tax regulations, and HR best practices. | May offer some general information but does not provide legal expertise specific to Italy. |
HR Services | Offers a comprehensive suite of HR services, including payroll, benefits, compliance, HR administration, and employee relations. | Focuses on automating internal HR tasks such as record-keeping, payroll processing, performance management, and recruitment. |
Cost | Typically involves a per-employee fee, which covers all HR services and compliance management. | Involves software licensing fees, implementation costs, and potentially ongoing maintenance fees. |
Business Setup | Allows companies to quickly hire employees in Italy without establishing a local legal entity. | Requires your company to have an established legal entity in Italy. |
Employee Management | Manages day-to-day HR operations and employee relations, acting as the point of contact for employee inquiries. | Provides tools for managing employee data and performance but does not handle direct employee relations in a legal employment context. |
How Much Does It Cost to Avail EOR Services in Italy?
While prices may highly vary based on the kind of services provided, the location of the workers, and the number of workers you wish to hire, there is usually a charge of as low as $599 per month to $2000 per employee per month.
Foreign organization hiring in Italy may however tend to face a confusion between either choosing an older EOR providers with high charges enterprise rates versus those new providers that cost less however may not guarantee the same quality of service. When you compare multiple EOR providers you get to make the best choice for your business without having to break the bank.
Conclusion: EOR Italy
In conclusion, when you use an employer of record in Italy you get a streamlines and efficient pathway for businesses that are seeking to expand their operations and hire talent within the country without having to face the complexities and costs associated with establishing a local legal entity. EOR services also tends to provide you with a comprehensive solution while handling all of the aspects of employment, which also includes payroll processing, benefits administration, compliance with Italian labor laws, and HR management.
FAQs – EOR Italy
- What is an Employer of Record (EOR) in Italy and how does it work?
An EOR is a third-party organization that acts as the legal employer for your workers in Italy. They handle all your HR functions, including payroll, taxes, benefits, and compliance, allowing you to hire without a local entity.
- Can an EOR help me hire remote employees in Italy?
Yes, EORs are ideal for hiring remote workers in Italy, as they manage all legal and administrative aspects of employment regardless of the employee’s location within the country.
- What are the benefits of using an EOR service in Italy?
The benefits you get include faster market entry, reduced administrative burden, ensured compliance with Italian labor laws, and cost savings compared to setting up a local entity.
- Do I still need to manage the employees after hiring through an EOR in Italy?
You retain day-to-day management of your employees’ work, while the EOR handles all your legal and HR-related responsibilities.
- How much does it cost to use an EOR service in Italy?
EOR pricing typically involves a per-employee monthly fee, this could vary based on your services and employee specifics.
- How does an EOR ensure compliance with Italian labor laws?
EORs possess in-depth knowledge of Italian labor law and stay updated on regulatory changes, ensuring your get proper compliance with employment contracts, payroll, and benefits.
- Can I hire employees through an EOR in Italy without setting up a local entity?
Yes, this is a primary advantage of using an EOR. It allows you to hire in Italy without establishing a subsidiary or branch office.
- How long does it take to onboard employees through an EOR in Italy?
Onboarding is typically faster through an EOR compared to when you set up a local entity, often taking only a few days or weeks.
- What happens if I want to terminate an employee hired through an EOR in Italy?
The EOR handles the termination process in accordance with Italian labor laws, mitigating legal risks for your company.
- What are the tax implications of hiring employees through an EOR in Italy?
The EOR handles all tax withholdings, remittances, and reporting in compliance with Italian tax regulations, simplifying tax administration for your business.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.