International employers – top traps for Italy

Set out below is a high level overview of the top employment traps that an employer might face when dealing with Italian employment law for the first time.

• Not appreciating that performance-related dismissals require a lengthy procedure and are often difficult to defend.
• Failing to take into account the impact of bonuses on the calculation of termination costs thus underestimating the potential cost.
• Not appreciating that individual employment contracts are not the core source of employment terms – many terms (such as notice, grievance procedure, trial period and absences) are governed by national contracts. If such terms are included in a standard contract, they are not effective – the national provisions will apply.
• Not appreciating that the concept of garden leave just does not work. 
• Failing to pay specific compensation for post termination non-compete covenants thereby risking a claim for recovery of amounts due over successive pay periods.

Comprehensive information on the employment law issues that arise in Italy is available here.