Expanding into Italy can be complex, especially when it comes to navigating local employment laws, payroll regulations, and compliance requirements. This is where an Employer of Record Italy (EOR) becomes a game-changer for international companies.
An EOR Italy Partner allows businesses to hire employees in Italy without the need to establish a local legal entity. The EOR becomes the legal employer on paper, handling everything from contracts and payroll to taxes and benefits, while you maintain day-to-day control over your team.
By using an Employer of Record in Italy, companies benefit from:
- Faster market entry with minimal setup time
- Full compliance with Italian labor laws and statutory contributions
- Streamlined HR and payroll management without the administrative burden
Whether you’re testing the Italian market, onboarding remote talent, or scaling your European operations, partnering with an EOR Italy provider ensures speed, flexibility, and peace of mind.
Overview about Italy
Italy, located in Southern Europe, is strategically positioned with access to key markets across the EU, North Africa, and the Middle East. With a population of over 59 million, it boasts major urban centers like Milan, Rome, Turin, and Bologna, which serve as hubs for finance, fashion, technology, and manufacturing.
As a founding member of the European Union, Italy plays a vital role in the region’s economy. It is renowned for its leadership in industries such as fashion, automotive, industrial manufacturing, and product design. The country’s infrastructure and business ecosystems make it an attractive destination for international companies.
Italy offers political stability, a highly educated and skilled workforce, and a strong emphasis on innovation and craftsmanship. These factors make the country particularly appealing for businesses looking to scale into Europe or build local teams.
For companies focused on hiring employees in Italy, the country presents a rich talent pool supported by world-class universities and strong vocational training systems. Partnering with an EOR Italy provider allows businesses to tap into this market efficiently and compliantly.
What is an Employer of Record in Italy?
An Employer of Record (EOR) in Italy is a third-party organization that legally employs workers on behalf of a foreign company. The EOR handles all employment-related responsibilities — including payroll processing, tax filings, employment contracts, and legal compliance — in accordance with Italian labor laws.
While the Employer of Record Italy becomes the official employer on paper, the client company maintains full control over the employee’s daily responsibilities, reporting structure, and work deliverables. This separation of legal and operational control simplifies hiring while reducing administrative complexity and risk.
Key EOR Services in Italy include:
- Drafting and managing locally compliant employment contracts
- Processing monthly payroll and withholding applicable taxes
- Managing contributions to INPS (social security) and INAIL (workers’ compensation)
- Administering employee benefits such as pensions, leave, and health coverage
- Ensuring ongoing compliance with Italian labor legislation and collective bargaining agreements (CCNL)
Employer of Record vs Legal Entity
When expanding into Italy, companies must choose between partnering with an EOR Italy provider or establishing a local legal entity. Each approach has unique benefits and challenges.
Comparison Table: EOR vs Legal Entity in Italy
| Feature | EOR Italy | Legal Entity Italy |
|---|---|---|
| Setup Time | A few days | Several weeks to months |
| Initial Costs | Low (no incorporation fees) | High (legal, accounting, registration fees) |
| Legal Employer | EOR | Your company |
| Operational Control | Shared (EOR handles legal, you manage day-to-day) | Full control |
| Compliance Management | Handled by EOR | Requires internal or local legal expertise |
| Ideal For | Short-term projects, market testing, remote teams | Long-term investments, large-scale operations |
| Brand Presence | Limited | Full presence and visibility |
| HR & Payroll Admin | Managed by EOR | Managed by your internal team or local vendors |
Choosing between an EOR vs Legal Entity in Italy depends on your timeline, budget, and long-term business strategy. An EOR Italy solution is ideal for rapid hiring and lower risk, while a Legal Entity Italy is better suited for companies with deep market commitment.
Use Cases for Employer of Record Italy
Partnering with an EOR Italy provider offers strategic flexibility for businesses looking to grow their workforce without the complications of setting up a local entity. Here are some of the most common scenarios where an Employer of Record model is highly advantageous:
1. Market Testing Without Establishing an Entity
Companies looking to explore the Italian market can hire local talent quickly and compliantly through an EOR. This allows for low-risk entry while assessing long-term potential.
2. Hiring Remote Workers Across Italian Regions
With an EOR Italy partner, businesses can legally employ professionals in Milan, Rome, Naples, or any other region — without worrying about local labor law variations or tax registration complexities.
3. Converting Freelancers to Full-Time Employees
If your team in Italy currently consists of independent contractors, an EOR can help transition them into compliant full-time roles while ensuring proper benefits, taxes, and job protections.
4. Recruiting Global Talent into Italy
An EOR enables companies to onboard international employees who relocate to Italy, handling their employment contracts, visas (where applicable), and payroll in full compliance with local laws.
For businesses focused on hiring employees in Italy, the EOR route ensures fast, compliant, and cost-effective workforce expansion.
Laws and Compliance for Hiring in Italy
Navigating Italy labor laws can be complex, especially for foreign businesses unfamiliar with local regulations. An EOR Italy partner plays a crucial role in ensuring full compliance with employment legislation, tax systems, and social contributions — minimizing legal risk while enabling seamless onboarding.
Italian Employment Laws
- Contracts: Employees may be hired under fixed-term or indefinite-term contracts. An EOR ensures contracts align with national standards and relevant collective bargaining agreements (CCNL).
- Probation Periods: Typically range from 1 to 6 months, depending on the role and sector.
- Working Hours: Standard workweek is 40 hours, with mandatory overtime pay for additional hours.
- Termination Rules: Termination must be justified and follow formal procedures. Notice periods vary by seniority and role, and improper dismissal can result in legal disputes or reinstatement.
Health & Safety Requirements
Employers must ensure a safe and healthy work environment in accordance with Legislative Decree 81/08. This includes risk assessments, mandatory safety training, and the appointment of a Health & Safety Officer. An EOR Italy ensures all legal duties are fulfilled on your behalf.
Social Security & Tax Contributions
- INPS: National Social Security Institute where employers must contribute toward pensions, unemployment benefits, and parental leave.
- IRPEF: Progressive income tax withheld from employee salaries by the employer.
- INAIL: Insurance for occupational injuries and diseases, also covered by employer contributions.
When hiring employees in Italy, it’s critical to follow these regulations to avoid penalties and ensure a positive employee experience — which an EOR Italy provider expertly manages.
Best EOR Companies in Italy
1. Asanify
Overview: Asanify is a globally recognized EOR platform that specializes in simplifying international hiring and payroll processes. Their services are tailored to assist businesses of all sizes in managing HR operations, ensuring compliance, and facilitating seamless employee onboarding in Italy and beyond.
Key Features:
- Global Reach: Offers EOR services across multiple continents, including Europe, making it ideal for companies looking to expand internationally.
- Integrated HR Solutions: Combines payroll management with HR functionalities, providing a unified platform for all employee-related operations.
- Compliance Assurance: Ensures adherence to local labor laws and tax regulations, mitigating risks associated with international employment.
Pricing: Asanify offers competitive pricing models tailored to the specific needs of businesses. For detailed pricing information, it’s recommended to contact Asanify directly.
2. Velocity Global
Overview: Velocity Global provides comprehensive EOR solutions, enabling businesses to hire, manage, and pay employees in over 185 countries, including Italy. They focus on ensuring compliance with local labor laws and offer a suite of services to support global expansion.
Key Features:
- Global Compliance: Keeps businesses updated on current tax rates and labor laws, ensuring adherence to local regulations.
- Flexible Pricing: Offers tailored pricing structures to accommodate various business sizes and needs.
- Comprehensive Support: Provides end-to-end support, from onboarding to payroll management.
Pricing: Velocity Global’s pricing is customized based on the specific requirements of the business. For a detailed quote, it’s advisable to contact them directly.
3. Remote
Overview: Remote specializes in helping businesses hire international employees without the need to establish local entities. Their platform offers EOR services that cover compliance, payroll, benefits, and more.
Key Features:
- Owned Entities: Operates its own legal entities in target countries, reducing reliance on third-party providers.
- Transparent Pricing: Provides clear and straightforward pricing models.
- Data Security: Emphasizes the protection of intellectual property and employee data.
Pricing: Remote offers EOR services starting at $599 per employee per month.
4. Deel
Overview: Deel is a global EOR provider that simplifies the process of hiring and paying employees internationally. They offer a platform that manages contracts, compliance, and payroll for businesses expanding into new markets like Italy.
Key Features:
- Quick Onboarding: Enables businesses to hire employees in Italy within minutes.
- Compliance Management: Ensures all contracts and employment practices adhere to local laws.
- Payroll Automation: Handles payroll processing, including tax withholdings and benefits administration.
Pricing: Deel’s EOR services are priced at $599 per employee per month.
5. Rippling
Overview: Rippling offers a unified platform that combines HR, IT, and finance operations, including EOR services. Their solution allows businesses to manage employees globally, ensuring compliance and streamlined operations.Rippling
Key Features:
- Integrated Platform: Combines various business operations into a single system.
- Automated Compliance: Keeps track of local labor laws and ensures adherence.
- Device and App Management: Manages employee devices and software access remotely.
Pricing: Rippling’s pricing starts as low as $8 per month, but for EOR services, it’s best to request a custom quote.
Comparison Table
| EOR Provider | Key Features | Pricing | Website |
|---|---|---|---|
| Asanify | Global reach, Integrated HR solutions, Compliance assurance | Contact for pricing | Asanify |
| Velocity Global | Global compliance, Flexible pricing, Comprehensive support | Contact for pricing | Velocity Global |
| Remote | Owned entities, Transparent pricing, Data security | $599 per employee/month | Remote |
| Deel | Quick onboarding, Compliance management, Payroll automation | $599 per employee/month | Deel |
| Rippling | Integrated platform, Automated compliance, Device and app management | Starting at $8/month (custom quote for EOR services) | Rippling |
When choosing an EOR provider in Italy, consider factors such as the scope of services, compliance expertise, pricing structure, and the specific needs of your business to ensure a successful partnership.
EOR Services in Italy
Partnering with an Employer of Record (EOR) in Italy allows businesses to delegate the complexities of local employment and focus on growth. A reliable EOR Italy provider acts as the legal employer and handles all administrative, legal, and payroll-related responsibilities, ensuring full compliance with Italian labor laws.
Key EOR Services in Italy include:
1. Payroll Processing and Tax Withholding
EORs manage accurate and timely payroll management in Italy, including salary disbursement, tax deductions (IRPEF), and contributions to social security institutions such as INPS and INAIL. This ensures employees are paid in accordance with local standards and all filings are completed on time.
2. Onboarding and HR Support
From contract signing to first-day orientation, an EOR provides seamless onboarding processes. They also offer continuous HR support, helping manage leave policies, performance tracking, and employee relations in line with Italy’s collective labor agreements (CCNL).
3. Employment Contracts and Benefit Administration
EORs draft legally compliant employment contracts customized to each role, ensuring they align with national and industry-specific regulations. They also manage statutory and optional employee benefits in Italy, including paid leave, health insurance, pension contributions, and wellness programs.
4. Legal and Compliance Services
An EOR stays updated on labor law changes and ensures full compliance with Italian regulations. This includes handling terminations lawfully, administering severance pay (TFR), and ensuring all employer obligations are met under local and EU labor laws.
By outsourcing these critical functions to an EOR, businesses gain peace of mind and operational agility when hiring in Italy.
How to Hire Employees Through an EOR Italy Partner
Hiring in a new country can be complex, but partnering with an EOR Italy provider streamlines the entire process — from contract creation to payroll and compliance. Here’s a simple, step-by-step guide to help you understand how to hire employees in Italy through an EOR:
Step 1: Choose a Suitable EOR Italy Partner
Research and select an experienced EOR Italy provider that offers robust compliance support, localized HR expertise, and scalable services tailored to your industry and hiring goals.
Step 2: Define Job Roles, Terms, and Salaries
Work with your EOR to outline job descriptions, employment terms, compensation structures, and benefits packages — all aligned with Italian labor laws and industry norms.
Step 3: Sign the EOR Service Agreement
Once the scope and terms are agreed upon, you’ll enter into a service contract with the EOR. This agreement outlines responsibilities, costs, and how the partnership will function.
Step 4: EOR Prepares Employment Contracts and Registers Employees
The EOR drafts compliant Italian employment contracts and registers your new hires with the necessary authorities (e.g., INPS, INAIL). This includes notifying labor offices and ensuring proper documentation is filed.
Step 5: EOR Manages Payroll, Tax Filings, and Ongoing HR Compliance
From salary disbursement to IRPEF tax withholdings, the EOR ensures smooth payroll management while maintaining compliance with Italy’s ever-evolving labor regulations. They also handle benefits administration, leave tracking, and statutory reporting.
By partnering with a trusted EOR Italy partner, companies can hire employees in Italy with confidence, speed, and legal assurance — all without setting up a local entity.
Taxes in Italy
Understanding the Italian tax system is essential when hiring locally or through an EOR Italy provider. Employers must manage both employee withholding taxes and their own statutory contributions, all while adhering to strict filing deadlines.
1. Employee Withholding: IRPEF and Regional Taxes
Employees in Italy are subject to IRPEF (Imposta sul Reddito delle Persone Fisiche) — a progressive income tax that ranges from 23% to 43%, depending on income brackets.
Additionally, regional and municipal taxes apply, typically ranging between 1.2% and 3%, and are withheld directly from employee salaries by the employer or EOR.
2. Employer Contributions
Employers are responsible for several mandatory contributions, including:
- INPS (National Social Security): Approximately 30–33% of gross salary, covering pensions, unemployment, and parental leave.
- INAIL (Accident Insurance): Rates vary by industry risk level.
- TFR (Trattamento di Fine Rapporto): A severance contribution of about 7% of the gross annual salary, accrued and paid when the employment ends.
These contributions are calculated and remitted by your EOR Italy partner as part of ongoing payroll compliance.
3. VAT for Businesses
If your business is providing goods or services in Italy, Value-Added Tax (VAT) registration may be required. The standard VAT rate is 22%, with reduced rates of 4%, 5%, and 10% for specific categories.
4. Tax Deadlines and Filings
Key dates include:
- Monthly filings: INPS and INAIL contributions and IRPEF withholdings.
- Annual declarations: Tax returns and year-end adjustments.
- VAT filings: Quarterly or monthly, depending on turnover.
Partnering with an EOR Italy provider ensures all employee taxes in Italy and employer obligations are managed accurately and on time.
CTC Calculator for Hiring in Italy
When hiring in Italy, the Cost to Company (CTC) goes beyond just the gross salary. Employers must factor in mandatory contributions like INPS, severance pay (TFR), and statutory or optional benefits. Partnering with an EOR Italy provider simplifies these calculations by managing all compliance and payroll obligations.
Key Components of CTC in Italy:
| Component | Estimated Cost (% of Gross Salary) |
|---|---|
| Gross Annual Salary | 100% (Base pay offered to the employee) |
| INPS (Social Security) | ~30% (Employer contributions to pension, welfare) |
| TFR (Severance Fund) | ~7% (Accrued and paid upon termination) |
| INAIL (Injury Insurance) | ~0.5%–2% (Varies by industry risk level) |
| Other Benefits | Variable (e.g., health insurance, meal vouchers) |
Example: Hiring at €40,000 Gross Salary
| CTC Element | Amount (€) |
|---|---|
| Gross Salary | €40,000 |
| INPS Contribution | €12,000 |
| TFR Accrual | €2,800 |
| INAIL | €400 |
| Benefits | €2,000 |
| Total CTC | €57,200 |
Key Considerations for Hiring Employees Through EOR in Italy
While working with an EOR Italy provider simplifies hiring and ensures legal compliance, companies should still be mindful of several critical factors to ensure a smooth and effective employment experience.
1. Localized Employment Contracts and Probation Clauses
Contracts must align with Italian labor laws and the applicable collective bargaining agreement (CCNL). This includes specifying job titles, compensation, benefits, and probationary periods — typically ranging from 1 to 6 months depending on the role and industry. An experienced EOR ensures that contracts reflect these local standards accurately.
2. Compliance with Leave Entitlements
Italy mandates a minimum of four weeks of paid vacation per year, along with public holidays, maternity/paternity leave, and sick leave. Your EOR must manage and track all these entitlements in accordance with legal and sectoral requirements to avoid non-compliance or employee dissatisfaction.
3. Employer-Provided Benefits: Pensions and Welfare
In addition to social security contributions (INPS), many employers in Italy also offer supplementary pension plans and welfare benefits such as meal vouchers, private health insurance, or travel subsidies. Including these in your offer package not only meets local expectations but also enhances your ability to attract top talent.
By focusing on these elements and partnering with the right EOR Italy provider, companies can ensure compliant, competitive, and employee-friendly hiring practices.
Employee Benefits in Italy
When hiring in Italy, it’s essential to understand the range of employee benefits required by law, as well as those commonly offered by employers to stay competitive in attracting and retaining talent. A reliable EOR Italy provider will ensure all employee benefits are managed in compliance with national labor standards and collective agreements.
Statutory Benefits (Mandatory by Law)
- Paid Annual Leave
Employees are entitled to a minimum of four weeks of paid vacation per year, in addition to rest periods and weekend breaks. - Public Holidays
Italy observes 12 national public holidays, along with regional holidays based on the location of employment. - Maternity and Paternity Leave
- Maternity Leave: 5 months (typically 2 before and 3 after childbirth) at 80% salary, covered by INPS.
- Paternity Leave: 10 days mandatory + 1 optional (paid), to be used within 5 months of birth.
- Sick Leave
Employees are entitled to time off due to illness with partial pay, depending on the length of service and terms in the applicable collective agreement (CCNL). - Pension Contributions (INPS)
Employers must contribute to the Italian National Social Security Institute, which funds pensions, unemployment benefits, and other protections.
Terminations in Italy
Terminating employment in Italy must follow a structured legal framework designed to protect employee rights. A trusted EOR Italy provider plays a crucial role in managing terminations lawfully, mitigating risk for foreign employers unfamiliar with Italian regulations.
1. Notice Periods
Notice periods in Italy are governed by the employment contract and the relevant collective bargaining agreement (CCNL). The length of the notice period depends on:
- Seniority
- Job classification
- Reason for termination
Typical notice ranges from 15 days to several months, and failing to give proper notice may result in a payment in lieu of notice.
2. Redundancy and Severance Process
When dismissals are due to organizational or economic reasons, employers must follow the redundancy process, including:
- Providing clear justification for the termination
- Notifying labor authorities (in mass layoff cases)
- Paying accrued benefits and TFR (Trattamento di Fine Rapporto) — the severance fund accrued during employment
- Potentially offering additional compensation as per CCNL or mutual agreement
An EOR Italy ensures that redundancy is carried out with full legal compliance and employee protections in place.
3. Types of Termination
- Resignation (Dimissioni): Voluntary exit by the employee, requiring formal notice and usually handled via Italy’s online resignation portal.
- Dismissal (Licenziamento): Can be for just cause (gross misconduct) or justified reason (economic or performance-related). Must follow strict procedural rules.
- Mutual Agreement (Risoluzione consensuale): Employer and employee agree to terminate the relationship under negotiated terms, often used to avoid disputes.
An EOR handles the termination process in Italy by drafting legal notices, ensuring severance is calculated correctly, filing necessary documents, and supporting both employer and employee through a compliant offboarding process.
Choosing the Right EOR Italy Services
Selecting the right EOR Italy provider is a strategic decision that can significantly impact the success of your international hiring and operations. While many providers offer similar services on paper, the right partner should align closely with your business needs and offer more than just compliance — they should be a true growth enabler.
Here’s what to look for when evaluating EOR Italy services:
1. Compliance Expertise
Your provider must have a deep understanding of Italian labor laws, tax regulations, and collective bargaining agreements (CCNL). This ensures every hire is 100% compliant and protects you from legal risks.
2. Local HR Knowledge
An ideal EOR should have in-country HR specialists who understand the nuances of regional laws, cultural expectations, and employment practices. This is crucial for drafting contracts, resolving disputes, and maintaining employee satisfaction.
3. Technology and Automation
Modern EOR platforms offer integrated dashboards for payroll, benefits tracking, document storage, and employee onboarding. Look for a partner that provides transparency, automation, and real-time reporting.
4. Scalability and Global Reach
If you’re planning to expand beyond Italy, choose an EOR with multi-country capabilities and scalable service models. This allows you to manage international teams from a single platform.
5. Transparent Pricing and Service Levels
Evaluate what’s included in the monthly fee (e.g., onboarding, payroll, benefits, compliance). The best providers offer transparent pricing and SLA-backed support for a smooth experience.
By carefully assessing these factors, you can choose an EOR Italy service that not only ensures compliance but also supports your long-term growth.
Benefits of Partnering with an Employer of Record in Italy
Expanding into Italy doesn’t have to be slow, risky, or expensive. Partnering with an Employer of Record Italy provider gives companies a fast, compliant, and low-risk way to build and manage a local workforce—without setting up a legal entity.
Key Benefits of Using an EOR in Italy:
1. Quick and Hassle-Free Hiring
An EOR Italy partner enables you to onboard employees within days, bypassing the long process of company incorporation and local tax registration.
2. Cost-Effective Market Entry
Avoid the overhead costs of forming a legal entity, hiring lawyers, accountants, and local administrators. EORs offer bundled services at a predictable monthly rate, making budgeting easier.
3. Full Legal Compliance
With complex labor laws, social security contributions, and sector-specific regulations, hiring in Italy carries legal risks. An EOR ensures all employment, tax, and payroll processes are fully compliant from day one.
4. Local HR and Payroll Expertise
From drafting compliant contracts to navigating CCNLs and managing employee queries, EORs provide localized support that keeps employees engaged and your business protected.
5. Focus on Core Operations
Free your internal team from the complexities of HR admin and legal compliance. The EOR handles the back-end while you focus on growing your business.
Whether you’re testing the waters in the Italian market or scaling a distributed team, partnering with an Employer of Record Italy provider is a smart and strategic move.
Risks or Drawbacks of EOR Italy
While working with an Employer of Record Italy provider offers speed and compliance, it’s important to understand the potential limitations before committing. Like any outsourcing model, EOR services come with trade-offs that businesses should consider based on their long-term goals.
1. Limited Control Over HR Policies and Processes
When using an EOR Italy partner, the EOR becomes the legal employer. This means certain HR elements—such as contract formatting, payroll timelines, and benefit structures—are handled according to the provider’s systems and legal templates. While this ensures compliance, it may reduce your ability to fully customize HR policies or workplace culture initiatives.
2. Higher Service Fees Over Time
Compared to managing employees through an internal HR and legal team, EOR services typically involve a monthly per-employee fee. While these costs are justified by the convenience and risk mitigation, they may add up over time, especially for larger teams or long-term operations. At a certain scale, setting up a local legal entity may become more cost-efficient.
3. Perceived Distance Between Company and Employees
Since the EOR is the legal employer, employees may initially feel less connected to your organization. This can impact onboarding and employee loyalty unless addressed with proactive communication and engagement strategies.
Despite these limitations, the benefits of speed, compliance, and ease of market entry often outweigh the drawbacks—especially for businesses looking to expand quickly or test the Italian market.
EOR vs HR Software in Italy
When expanding into a new market like Italy, businesses often confuse Employer of Record (EOR) services with HR software solutions. While both support workforce management, their functions, responsibilities, and legal roles are fundamentally different.
Employer of Record (EOR)
An Employer of Record Italy provider becomes the legal employer on behalf of your company. It manages all local employment responsibilities, including:
- Drafting legally compliant employment contracts
- Handling payroll, tax filings, and social security contributions
- Ensuring labor law compliance and managing employee benefits
- Acting as the official point of contact with Italian authorities
This solution is ideal for companies hiring in Italy without establishing a local legal entity.
HR Software
HR Software in Italy is a digital tool used to manage internal HR functions for companies that already operate locally or globally. It does not assume legal employment responsibilities but offers functionalities such as:
- Attendance and time tracking
- Leave and vacation management
- Performance reviews and goal setting
- Internal payroll administration (without assuming tax/legal liabilities)
Key Difference:
- EOR = Legal employer & compliance partner
- HR Software = Internal operations tool
For companies entering the Italian market for the first time, Employer of Record Italy services provide the full legal framework needed to hire and operate. HR software can complement this by managing day-to-day workflows but cannot replace the legal employment role of an EOR.
FAQs
1. How does an Employer of Record comply with Italian laws?
An EOR Italy provider ensures compliance by adhering to local labor regulations, collective bargaining agreements (CCNL), and tax requirements. They handle everything from employment contracts to INPS contributions and terminations in full accordance with Italian law.
2. What benefits come with using an EOR in Italy?
Key benefits include:
- Rapid onboarding without establishing a legal entity
- Full compliance with Italian tax and employment laws
- Local HR and payroll support
- Reduced administrative burden and operational risk
3. Can an EOR hire remote talent across Italy?
Yes. An EOR Italy can legally hire employees anywhere in the country — from Milan to Naples — ensuring all regional compliance requirements are met, including varying local taxes and labor provisions.
4. What’s the difference between an EOR and a PEO in Italy?
- EOR (Employer of Record): Becomes the legal employer and is used when a company does not have a legal entity in Italy.
- PEO (Professional Employer Organization): Co-employs staff with a company that does have a legal presence in Italy.
If your business lacks a local entity, an EOR is the correct model.
5. Is it legal to use EOR services in Italy?
Yes. Using an EOR in Italy is a fully legal and compliant method for hiring employees in Italy, especially for foreign companies entering the market without setting up a local branch.
6. What are the biggest EOR-related risks in Italy?
While EOR services offer many benefits, risks may include:
- Limited control over employment policies
- Long-term cost implications compared to setting up an entity
- Variations in service quality across providers
Choosing a reputable EOR Italy partner helps mitigate these risks.
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.