Notification rules for posted employees implemented

IMPACT – MEDIUM

What is the change? New rules that require foreign companies posting workers to provide notice to Italian authorities have taken effect.

What does the change mean? Effective this week, companies posting workers to Italy must provide notification to the Labor Inspectorate no later than midnight of the day before the posting. They must also notify authorities within five days of any change in conditions. Notification must be completed for new postings, but also for assignments that began on or after July 22, 2016 that will remain ongoing through Jan. 26. The notification requirements apply regardless of the employee’s nationality.

• Implementation time frame: The new rules were implemented Monday. “Postponed notification,” as the requirement that companies notify authorities of postings beginning on or after July 22 is called, must be completed by Jan. 26.
• Who is affected: Non-EU companies posting workers in Italy; EU companies and placement agencies posting workers in Italy.
• Business impact: Foreign companies should take note of the new notice and document retention obligations and make sure they remain in compliance with the new rules.
• Next steps: Additional information about the new posting requirements is available in Italian or English on this government website.

Background: The new rules were passed by Decree No. 136/2016 in July to conform to the EU Directive on Posted Workers. Some of the decree’s provisions took effect in July, including requirements that companies retain documents for at least two years after the posting and appoint representatives in Italy to serve as contacts between Italian authorities and the sending company. The notification requirements took effect this week and, as noted above, apply retroactively to any postings dating back to July 22.

BAL Analysis: Companies should take note of the new notification rules. Both the sending and hosting companies should be aware that they will be jointly liable for violations of the regulations, and penalties may be levied up to two years after an assignment. Contact BAL with any questions about remaining in compliance with the new requirements.

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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