New rules adopted for posted workers

IMPACT – MEDIUM

What is the change? Italy has adopted a decree that imposes new notification and documentation requirements on foreign companies sending employees to work in Italy.

What does the change mean? Foreign companies (EU and non-EU) and placement agencies that post employees to Italy will be required to send notice to Italy’s Ministry of Labour before employees are posted and in the event of any change in the employee’s status in Italy or with the company; keep all documents related to the posting, including employment contracts and payslips; and name a local representative domiciled in Italy who can represent the company in relation to the posting.

• Implementation time frame:  The decree was implemented July 22.
• Who is affected: Foreign companies and placement agencies posting employees to Italy.
• Business impact: The changes add administrative steps and document retention requirements to the process of sending employees to work in Italy.
• Next steps: Affected businesses should become familiar with the new rules and be sure they are in compliance with all new requirements.

Background: The decree was adopted in July to keep Italy in compliance with an EU directive on posted workers. Besides establishing the notification and documentation requirements described above, the decree sets up a joint liability framework so that both host and sending companies can be held liable for violations. Penalties may be imposed for up to two years after the termination of a posting.

BAL Analysis: Affected employers should make sure they follow Italy’s new requirements on posted workers. Contact your BAL professional with any questions about the changes or steps required to stay in compliance.

This alert has been provided by the BAL Global Practice group and our network provider located in Italy. For additional information, please contact your BAL attorney.

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