Guidelines published on new rules for posted workers

IMPACT – MEDIUM

What is the change? The government has published guidelines on how new rules for foreign companies posting workers in Italy will be implemented.

What does the change mean? The guidelines clarify that foreign companies posting workers in Italy must provide electronic notification to the Labor Inspectorate no later than midnight of the day before the posting and must notify authorities within five days of any change in conditions. The guidelines also clarify that companies must retain documents for at least two years after the posting and appoint representatives in Italy to be in charge of documents and to deal with labor agencies.

• Implementation time frame: The regulations take effect Dec. 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 prepare for the new notice and document retention obligations.
• Next steps: Companies posting workers to Italy will need to register and create an account on the Labour and Social Policy portal, and should appoint a representative in Italy before the regulations take effect.

Background: The new rules were passed by Decree No. 136/2016 in July to conform to the EU Directive on Posted Workers.

Foreign employers who are posting workers to Italy must notify Italian authorities via the Labour and Social Policy portal no later than midnight of the day before the worker is posted, and report any changes within five days of a change through the same portal. The information submitted by posting companies will be shared among Italian labor authorities, the social security administration and workers compensation authorities.

Additionally, posting companies must retain documentation of the posting, including employment contracts, pay slips, proof of salary payments, certificates of coverage of social security exemptions, etc., for up to two years after the end of the assignment. The posting company must also appoint a representative based in Italy for up to two years after the end of the assignment to manage official documents related to the assignment, as well as a representative to deal with the governmental entities. (If a representative is not appointed, the local host employer will be considered as the representative.)

B·A·L Analysis: Companies outside of Italy that post employees to Italy should prepare for the new rules now. 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.

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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