ITALY: Annual Update – Expected Labour Law Changes in 2017

Smart Working

New measures relating to ‘smart working’:   In November 2016 the Senate approved a bill containing new measures for the protection of the self-employed and to promote smart-working for employees.

The bill will introduce a series of new measures to support self-employed workers and consultants (including maternity leave, training programs and tax-reliefs); but above all, it finally sets out Italy’s legal framework of remote/home working.

The bill is now subject to the scrutiny of the Chamber of Deputies; the Government hopes to get final approval later this year so that the new rules can take effect in 2017.

Action required: Get to know and understand the new regulations and review your existing policies and procedures to ensure their compliance.


Changes affecting Pension Rights:   The 2017 Financial Act provides for early retirement of certain categories of employees. The Government also plans to raise the minimum pensions’ amounts currently in force.

The bill is now subject to scrutiny by the Senate. Further development is expected in 2017.

Action required: None at present.

Employee benefits

New tax reliefs on benefits for employees  The 2017 Financial Act creates additional opportunities for employers to introduce new, or enhance existing, welfare benefit plans for employees and their families, boosting the range of benefits eligible for income tax/social charges relief.

The bill is now subject to scrutiny by the Senate.

Action required:

(1) To seize the various opportunities, employers will need to become familiar with the new rules.
(2) Carry out a review of company benefit plans.

Tax reliefs for New Hires

Tax reliefs for hiring young or unemployed people:   The Government plans to introduce a total tax relief lasting 12 months, for open-ended employment agreements signed in the South of Italy and entered into with young people and unemployed individuals.

Further development is expected in 2017.

Action required: None at present.

Collective dismissals

Collective dismissal rules:   From January 1, 2017, the mobility allowance (indennità di mobilità) will be replaced by “N.A.S.P.I.”.

Action required: None at present.