Newsletter march 2025

Fixed-Term Employment – Extension of the Transitional Regime

Under a recent legislative measure, in force since 28 December 2024, the validity of the transitional regime concerning fixed-term employment contracts has been extended until 31 December 2025.

According to this regime, where no specific provisions are set out in the applicable NCBA, the employer may enter into fixed-term contracts exceeding 12 months in duration for technical, organisational or production-related needs.

Nova 19/2025

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Persons with Disabilities – Self-Management of the Life Project Budget

As part of the disability reform, Ministerial Decree No. 17 of 14 January 2025 – published in the Official Gazette No. 47 of 26 February 2025 and in force as of 13 March 2025 – sets out the procedures, timelines, criteria and communication obligations relating to the self-management of the life project budget, as provided for under Art. 28 of Legislative Decree No. 62 of 3 May 2024. Concerning employees posted abroad, INAIL has issued guidance on the calculation of insurance premiums based on the 2025 conventional remuneration levels. Also of note are important clarifications regarding the eligibility conditions for the special tax regime applicable to inbound workers (lavoratori impatriati) and the instructions on how to report this in the 2025 REDDITI PF

Businesses Established Through Aggregation Processes – Social Security Contribution Exemption in the Presence of Agreements on Active Labour Policies

 With Interministerial Decree 6 March 2025, the Ministry of Labour, in agreement with the Ministry of Economy and the “Ministry of Made in Italy” (Ed. Note: an actual Ministry in Italy), issued the implementing provisions for the social security contribution exemption applicable when the employer, as part of a business aggregation process resulting from one or more extraordinary corporate transactions, concludes an industrial and active labour policy agreement with trade union representatives at governmental level. This applies where the aggregation leads to a total workforce of 1,000 or more employees.

This incentive, introduced on an experimental basis for the years 2024 and 2025 by Article 4-ter of Decree-Law No. 4/2024, converted into Law No. 28/2024, consists of a 100% exemption from the payment of social security and welfare contributions owed by the employer, excluding premiums and contributions due to INAIL. The exemption applies for a maximum period of 24 months, up to an annual limit of €3,500 per employee involved in the agreed active labour policy project.

The exemption is extended for an additional 12 months, up to an annual limit of EUR 2,000 per employee.

Post-Disaster Reconstruction Works – Protection of Workers

Framework Law No. 40/2025 on the reconstruction of buildings affected by catastrophic events was published in the Official Gazette No. 76 of 1 April 2025. This legislation introduces specific provisions concerning the protection of workers involved in the repair, restoration or reconstruction of private buildings damaged or destroyed by calamitous events in areas for which a national-level reconstruction state has been declared.

More specifically, it is established that the rules applicable to public contracting authorities shall also apply in such cases, specifically with regard to:
i) compliance with the economic and regulatory conditions set out in national and territorial NCBAs signed by the most representative trade union organisations at national level,
ii) possession of a valid DURC (Single Insurance Contribution Payment Certificate).

Furthermore, contractors or executing companies engaged in the above-mentioned reconstruction works are required to:

• register with and pay social security contributions to the provincial or regional construction funds (Casse edili) established by one or more employers’ and workers’ associations that are comparably most representative at national level and duly operating in the provinces concerned,
• provide suitable accommodation for their employees and notify:
  i) the mayors of the municipalities where the construction sites are located, and
  ii) the local bipartite committees for the prevention of accidents, hygiene and workplace safety,
• issue each worker with an identification card bearing a non-reproducible hologram and the worker’s identifying details, in accordance with art. 18(1)(u) and art. 26 of Legislative Decree No. 81/2008, and art. 5 of Law No. 136/2010 on safety obligations in public works contracts.

‘Maxi-Deduction’ for New Hires – Criteria for Determining the Employment Increase

Employers hiring new workers under permanent employment contracts may benefit from a 20% increase in the deductible cost of labour. Access to this measure, which is applicable for 2025, 2026 and 2027, is subject to verification of an increase in employment compared to the previous year.

Analysis 03/2025

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Social contribution debts – new interest rate

INPS has announced that, as of 12 March 2025, the interest rate for the deferral and instalment payment of social security and related contribution debts is reduced to 8.65%.

At the same time, the rate applied for the calculation of civil penalties is reduced to 8.15%.

Nova 21/2025

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Employees posted abroad – INAIL premiums on conventional salaries for 2025

With Circular message No. 20/2025, INAIL clarified on the method for calculating insurance premiums applicable in 2025 for workers operating in non-EU countries that have entered into a social security agreement with Italy.

The premium must be calculated based on the conventional remuneration levels set for 2025 by the Interministerial Decree of 16 January 2025. The applicable insurance rates for work-related accidents and occupational diseases are those set out in the Ministerial Decree of 27 February 2019.

Tax regulations for ‘inpatriate’ employees – specification on the REDDITI PF 2025 draft form

 The draft version of the REDDITI PF 2025 tax return form incorporates the new rules applicable to workers who transfer their tax residence to Italy from 2024, specifically the new regime for ‘inpatriate’ workers set out in Art. 5 of Legislative Decree No. 209/2023. The previous regime remains applicable for individuals who qualify under the transitional regulations (Art. 16 of Legislative Decree No. 147/2015).

For those benefiting from the new regime, the Italian Revenue Agency has provided the following instructions for completing the relevant sections of the form:

• New specific codes must be entered alongside Sections RC and RE,
• Employment income must be reported in its reduced amount, within the annual income cap of EUR 600,000. The portion of income exceeding this threshold is not eligible for the relief and must be declared in column 3 of line RE21.

Content creator – Social contribution profiles

In light of the defining elements of the employment relationship established with a content creator, INPS has clarified, by means of a circular message, the applicable social security framework in relation to content creation activities carried out on digital platforms, also providing relevant guidance on the associated contribution obligations.

Nova 17/2025

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Tax regime for ‘inpatriates’ – functional connection

Departing from its previous interpretative position, the Italian Revenue Agency has recently clarified that the special tax regime for ‘inpatriate’ workers may apply even in the absence of a functional link between the worker’s transfer of tax residence to Italy and the commencement of employment activity carried out in the country..

Nova 22/2025

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2025 Budget Law – INPS clarifies on its application for pension purposes

With Circular No. 53/2025, INPS provides an overview of the provisions introduced by Law No. 207/2024, which are immediately applicable in the area of pensions. In particular, the Institute summarises the rules under which:

• Female workers who, by 31 December 2024, have accrued at least 35 years of contributions and reached a minimum age of 61, may access the early retirement scheme known as Opzione Donna, as provided for in Art. 16(1-bis) of Decree-Law No. 4/2019, converted into Law No. 26/2019. Access to this scheme is subject to the fulfilment, at the time of submitting the application, of the conditions set out in the mentioned legislation,
• Workers who, during 2025, reach at least 62 years of age and have a minimum of 41 years of contributions, may access flexible early retirement, with an effective start date of:
  i) 7 months from when the requirements are met for private sector employees and self-employed workers;
  ii) 9 months for employees of public administrations,
• Individuals who fall under one of the conditions set out in Art. 1(179, letters a) to d) of Law No. 232/2016 may apply for the ‘Social APE’ pension scheme, which is available until 31 December 2025. Applications may be submitted by 31 March 2025, 15 July 2025, or in any case no later than 30 November 2025,
• An increase in pensions equal to or below the minimum INPS amount is granted, equal to 2.2% for 2025 and 1.3% for 2026,
• An increase of EUR 8 in the social supplement to pensions, as referred to in Art. 1 of Law No. 544/1988, is recognised for 2025 only.

Women Victims of Violence – Submission of Applications for the “Reddito di Libertà” Allowance

Through circular message No. 54/2025, INPS provides instructions for submitting applications to access the Reddito di Libertà allowance for the year 2025. The measure was introduced to ensure the economic independence and empowerment of women victims of violence, with or without children, residing in Italy and supported by anti-violence centres recognised by the Regions and by social services, as part of programmes aimed at escaping violence,

The financial contribution amounts to a maximum of EUR 500 per person per month, paid in a single instalment for a maximum duration of 12 months,

Women meeting the above criteria may submit their application for the 2025 allowance from 5 March 2025 to 31 December 2025,

Termination of employment due to unjustified absence from work – Uniemens code

With an unexpected and arguably unnecessary measure, INPS has introduced a specific code to be included in the Uniemens data flow in order to identify cases of employment termination due to the employee’s unjustified absence.

Nova 18/2025

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‘Inpatriates’ Tax Regime Also Applicable in Case of First-Time Transfer of Tax Residence

In reply to Query No. 70/2025, the Italian Revenue Agency (Agenzia delle Entrate) confirms that the special tax regime for inbound workers, provided for under art. 5 of Legislative Decree No. 209/2023 and effective as of 1 January 2024, is also applicable to workers who, while meeting all other statutory requirements, transfer their tax residence to Italy for the first time.

According to the Agency, “law does not make the application of the new regime conditional upon the taxpayer having previously been a resident in Italy before moving abroad. Therefore, in principle, and in the absence of specific exclusions, the new regime may be applied—provided all other legal requirements are met—even by taxpayers who have never been tax residents in Italy”.

‘Inpatriates’ tax regime – Extension of the minimum period of fiscal residency abroad

Answering Query No. 72/2025, in relation to the application of the new tax regime for ‘inpatriate’ workers introduced by art. 5 of Legislative Decree No. 209/2023, the Revenue Agency clarified that the extension of the minimum period of prior residence abroad — 6 or 7 years, depending on whether the worker carries out their activity for the same entity for whom they worked in Italy before moving abroad — applies regardless of the type of contractual relationship between employer and worker.

ZES regions and exemption from social contribution duties for new hires – Operating instructions

By ministerial decree, instructions have been issued for accessing the full exemption from the mandatory social security contribution payable by employers established in one of the regions of the Single Special Economic Zone (ZES) for Southern Italy, who hire workers aged 35 or over and unemployed for at least 24 months, during the period between 1 September 2024 and 31 December 2025.

Nova 20/2025

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‘Extra’ Workers – Additional Contribution for Fixed-Term Contracts Not Applicable

With mess. No. 913/2025, INPS clarified on the exclusion from the payment of the additional contribution provided for under art. 2(28) of Law No. 92/2012 for the conclusion of fixed-term contracts.

More specifically, the Institute specifies that so-called ‘extra’ workers — defined under art. 29(2)(b) of Legislative Decree No. 81/2015 as workers hired to perform special services lasting no more than three days in the tourism and hospitality sectors, in specific circumstances identified by collective agreements, as well as those engaged under temporary port work contracts pursuant to art. 17 of Law No. 84/1994, subject to the obligation to notify the establishment of the employment relationship by the day prior to commencement — also include workers performing canteen and collective catering activities and catering services, identified respectively by ATECO code 56.29.10 and CSC 7.07.05, and by ATECO codes 56.29.20 – 56.21.00 and CSC 7.07.05.

According to the Institute, these activities fall within the scope of hospitality establishments and the national collective agreements (CCNL) for Tourism, Hospitality, Collective and Commercial Catering, and Hotels.

ISTAT – Consumer price index for February 2025

In a press release dated 17 March 2025, ISTAT announced the consumer price index for the month of February 2025, which stands at 121.1 points. This index forms the basis for calculating the revaluation coefficients for severance pay (TFR) and employment-related claims.

Approval of IRAP 2025 form

With Provision No. 127533/2025, Agenzia delle Entrate announces the approval of the IRAP 2025 tax return form, to be submitted for the year 2025 for the purposes of the regional tax on productive activities (IRAP).

The new return is accompanied by the following documentation:

• the instructions for completion, concerning payment data, credits, and offsets,
• the technical specifications for electronic filing.

INAIL insurance premiums and ancillary payments – Adjustment of interest rate

With circ. No. 22/2025, INAIL confirms the change in the interest rate applicable to the instalment plans for the payment of insurance premiums and related charges, as well as for the calculation of civil penalties, following the decision by the ECB to set the Official Reference Rate (Tasso Ufficiale di Riferimento, or T.U.R.) at 2.65%, effective from 12 March 2025.

Notably, it is established that amortisation plans for applications submitted from 12 March 2025 are calculated using an interest rate of 8.65%. Civil penalties for non-payment or late payment of insurance premiums are set at a rate of 8.15%.

Nursery Bonus – Access to contribution for 2025

With circ. No. 60/2025, INPS updates the guidelines for accessing the contribution granted for attendance at public and private nursery schools, and for the provision of in-home support in the case of children under the age of 3 affected by serious medical conditions. The contribution must therefore be requested by the parent, or legal guardian, either for the payment of nursery school fees or for the implementation of in-home support measures.

Following the publication of the 2025 Budget Law, for children born on or after 1 January 2024, the contribution has been increased by EUR 2,100 for households with an ISEE value of up to EUR 40,000.

As further specified by the Institute in mess. No. 1014/2025, the application for access to the contribution may be submitted from 2 April 2025 by the parent, or legal guardian, of a child under the age of 3. As part of the initial implementation of the measure, and for the year 2025 only, where the application concerns contributions for the months from January 2025 to April 2025, proof of payment made by 31 March 2025 may also be submitted using supporting documents deemed valid in 2024.

Privacy – Tracking of employees via GPS on company cars

With Provision No. 7 of 16 January 2025, the Italian Data Protection Authority imposed a fine on a road haulage company for having installed a GPS system on company vehicles without complying with the provisions of Regulation (EU) No. 679/2016 (GDPR) regarding the processing and storage of employee data.

In particular, the Authority found that the information notice provided to employees contained serious deficiencies in breach of the conditions set out by the Labour Inspectorate in its authorisation measure for the geolocation system, specifically regarding:
i) the detailed methods by which data processing was carried out, and
ii) the direct identifiability of the drivers of the geolocated vehicles.

The fine imposed by the Authority was also justified by the company’s retention of the recorded data for over five months, in breach of the data storage limitation principle set out in art. 5(e) of the GDPR.

Proof of Overtime Work Through Witness Testimony

A public sector employee sought to claim pay differentials from their former employer, including compensation for 20 minutes of overtime per working day. The Corte di Cassazione, upholding the Court of Appeal’s ruling, clarified in order No. 4984/2025 that overtime work may be validly proven through witness statements, even in the absence of timekeeping records or signed attendance sheets.

Jus 03/2025

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Unlawful Dismissal of a Worker Who Alleges Workplace Harassment in a Multi-Recipient Communication

In order No. 3627/2025, the Corte di Cassazione held that sending an email accusing a supervisor of mobbing, with colleagues in copy, does not justify dismissal if the message is conveyed within the bounds of formal and substantive restraint, without gratuitous offence or aggression.

Jus 03/2025

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Income Earned in the Year the Pension Benefit Begins is the Relevant Threshold for Eligibility

INPS had revoked a civil disability allowance on the grounds that the worker’s income exceeded the threshold. Corte di Cassazione, in order No. 4290/2025, ruled that judicial verification of the requirements for a social security benefit must be conducted with reference to the income earned in the year in which the benefit commences.

Jus 03/2025

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Dismissal Not Justified Where the Employee Fails to Notify Leave Under Law No. 104/1992

In order No. 5611/2025, Corte di Cassazione reaffirmed its strongly protective stance regarding the conditions and procedures for taking leave to assist family members with disabilities, as recognised and regulated by Law No. 104/1992.

Jus 03/2025

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Video posted on a private group chat – unlawful dismissal

An employee who shares a video in a private group chat on the WhatsApp platform, which is later forwarded to the employer, cannot be lawfully dismissed. In fact, when the content of a message (such as a video) is sent to specific individuals and intended to remain confidential, it cannot constitute just cause for disciplinary dismissal. This is because, “an employer does not hold a purely moral disciplinary power over employees that would allow them to restrict or compress constitutionally protected freedoms, such as that concerning private correspondence,” as provided for under art. 15 of the Italian Constitution (Corte di Cassazione, judgement No. 5334 of 28 February 2025).

Non-deductibility of the remuneration paid to an employee who serves as Chair of the Company’s Board of Directors

The position of director of a company is incompatible with the status of employee of the same company, as “the combination in the same person of the powers of representation of the company, management, oversight and disciplinary authority makes it impossible to establish the distinction between the parties to the employment relationship and their respective roles.”

Therefore, where the duties performed correspond to those inherent in the office of director, the remuneration paid for subordinate employment is non-deductible (Corte di Cassazione, ruling No. 5318 of 28 February 2025).

Stating the intention to only hire women if aged over 40 is discrimination

Where the legal representative of a company publicly states a preference for appointing men, or alternatively only women over the age of forty, to senior positions, such conduct constitutes a potential form of indirect and collective discrimination.

According to well-established case law, the statements made by a company’s legal representative, by virtue of their role, can influence internal business processes and may result in an objective form of disincentivisation that is subject to legal sanction (Court of Busto Arsizio, 3 February 2025).

Platform workers – Legal nature of the employment relationship

The Court of Milan, in line with its previous ruling (Court of Milan, judgment No. 3237/2023), confirms that the employment relationship of digital platform workers — in particular so-called ‘riders’ — qualifies as organised-dependent work under art. 2 of Legislative Decree No. 81/2015, and is therefore subject to the protections applicable to subordinate employment. As such, riders must be covered by the entire social security and insurance framework applicable, where compatible, to employees (Court of Milan, judgment No. 1017/2025).

Unlawful dismissal if based on non-transparent monitoring of company computer

The dismissal of an employee based on data obtained by the employer through monitoring of the employee’s company computer, carried out without adequate prior information, is unlawful and entails the employee’s reinstatement and compensation for damages.

In fact, under art. 4 of Law No. 300/1970 concerning the remote monitoring of workers, the employer’s use of technological tools that may result in remote surveillance is only permitted where justified by organisational and production-related needs, workplace safety, or the protection of company assets. Such use must be preceded by an agreement with the company’s internal union representatives (RSA or RSU), where present, or with the most representative trade unions, or alternatively, by authorisation from the Labour Inspectorate (Court of Trani, 10 February 2025).

Dismissal: null if the employee refuses to work in good faith

Where an employee refuses to carry out their work due to the employer’s provision of equipment that is unsuitable for the performance of that work, any resulting dismissal is unlawful, as it constitutes a retaliatory measure.

Indeed, if the employer fails to meet their obligations by not placing the employee in a position to properly carry out their duties, the employee may legitimately refuse to work pursuant to art. 1460 of the Italian Civil Code, provided that such refusal is made in good faith (Corte di Cassazione, order No. 6966 of 16 March 2025).

Disabled workers – reasonable accommodations may be ‘put in context’

Employees with disabilities in situations of serious impairment are entitled to the activation of smart working as a form of reasonable accommodation to enable the exercise of their right to work.

On this point, the Corte di Cassazione, with judgment No. 605 of 10 January 2025, established the principle that the employer may refuse to grant remote working if such an arrangement would impose disproportionate financial burdens on the company.

The Court of Mantua has further addressed the issue, concluding that reasonable accommodations must be implemented and adopted with due regard to the company’s specific and current organisational and production-related needs.

Accordingly, reasonable accommodations may be contextualised and subject to modification, without prejudice to the employee’s right to challenge any such changes (Court of Mantua, judgment No. 77 of 5 March 2025).

Safety in Contracting – interference risk for companies performing the same activity

In matters of occupational health and safety, where an employer entrusts works, services or supplies to a contractor, art. 26(2) of Legislative Decree No. 81/2008 provides that all employers involved in the contract — including subcontractors — must “coordinate protection and prevention measures against risks to which workers are exposed, sharing information with one another in order to eliminate risks arising from interference between the activities of the various companies involved in carrying out the overall work.”

For the purpose of assessing the so-called interference risk, it is irrelevant whether the companies involved perform the same type of activity, as the risk arises solely from the fact that different companies are operating within the same workplace (Corte di Cassazione, Criminal section, judgment No. 8297 of 23 January 2025).

Smoking Ban – Dismissal of the employee despite the employer’s tolerance

An employee who violates a smoking ban may be lawfully dismissed even where the ban is not clearly signposted and the employer is aware of the employee’s conduct.

Indeed, the employer’s tolerance of the violation of the smoking ban “is not, in itself, sufficient to remove the unlawful nature of the conduct, either from an objective or subjective perspective.” In particular, with regard to the subjective element of the unlawful conduct, simple negligence is sufficient; good faith may be invoked only where the employee’s mistaken belief in the lawfulness of their conduct is unavoidable (Corte di Cassazione, order No. 7826 of 24 March 2025).

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AG Insights – Simplified 770 form

By Giovanna Caivano

At the microphones of Radio Magistra – for the first time – Giovanna Caivano, Team Manager for international projects at ArlatiGhislandi. Giovanna examines the 770 tax form, focusing on its recent innovative development: the so-called simplified version.

Which companies are eligible to adopt this new alternative model? And how is the choice formalised?

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AGpill – Form 770/2025 – The new simplified procedure

By Giovanna Caivano

We are inaugurating a new format dedicated to our foreign clients who want to better understand Italian labor law. The first video is about the new 770 declaration. Giovanna Caivano Team Manager for International Projects in AG, speaks about the new simplified procedure introduced by the Revenue Agency.

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AG Insights – Building a sustainable future – Global Money Week – APM & Educazione Finanziaria – Chapter 2  

by Gianluca Primavera 

On occasion of the #GlobalMoneyWeek, the programme “Building a Sustainable Future during Global Money Week. APM & Financial Education – Chapter 2” is on air, made possible through the collaboration of Gianluca Primavera, ESG and Finance Manager at AG.

Together with Gianluca, we explored this internationally recognised initiative promoted by the OECD (Organisation for Economic Co-operation and Development): a week dedicated to raising young people’s awareness of the importance of acquiring the knowledge, skills, and behaviours needed to make financial decisions aligned with their needs and possibilities.

AG is an active contributor to this forward-looking initiative, through its APM (Active Portfolio Management) service and ongoing efforts to provide companies and individuals with knowledge and awareness in the fields of finance and pension planning.

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AG Insights – Content creators and digital platforms: social contribution profiles 

by Luca Barbieri and Matteo Raglio

Influencers, youtubers, streamers, podcasters, instagrammers, pro-gamers e cyber-athletes: the professional figure of ‘content creator’ is evolving.

At the microphones of Radio Magistra, Luca Barbieri and Matteo Raglio from the AG Studi e Ricerche research centre examine the interaction between new technologies and business activity, a phenomenon that is giving rise to new forms of work organisation.

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