FAQ: Posting of Workers to Italy
What does posting to Italy mean?
Posting to Italy means that an employee temporarily carries out work in Italy in the context of a cross-border provision of services, while the employment relationship with the foreign employer continues to exist.
A general distinction must be made between posting to Italy and registering an employee in Italy as a local employee. This distinction is important for companies because, depending on the case, different obligations under labour law, social security law and reporting requirements apply.
When does a posting to Italy exist?
According to the definition described, a posting to Italy exists when an employee carries out work in Italy for a limited period of time on the instructions of his or her foreign employer.
This includes not only classic postings, but also field service activities, secondments, goods transport and other cross-border assignments. The decisive factor is that the service is provided temporarily in Italy. Companies should therefore not focus only on the designation of the assignment, but on the actual substance of the activity.
Which assignments are normally exempt from the posting notification in Italy?
The following are normally exempt:
- business meetings without any further services
- participation in seminars or lectures without any further services
- exhibiting at or participating in trade fairs, congresses, conferences and similar events without any further services or sales
- certain cultural events outside an employment relationship
- participation in international sports competitions and championships
The key point here is the phrase without any further services. As soon as an additional service is actually provided in Italy, the exemption may cease to apply.
Does the reporting obligation also apply to field service activities in Italy?
Yes, the reporting obligation does not apply only to traditional postings, but also to field service activities and goods transport (cabotage) if the employee performs his or her work in Italy.
This includes, for example, assembly assignments, delivery assignments or business trips during which work is carried out for the company itself. A frequent mistake in practice is to classify field service incorrectly as a mere business trip, even though a notifiable activity actually exists.
Is a secondment to a company’s own subsidiary in Italy also considered a posting?
Yes, the secondment of personnel to a company’s own subsidiary or to an affiliated company may also fall under the posting rules.
In practice, this means that even intra-group assignments are not automatically exempt from Italian reporting obligations. Anyone posting employees to Italy within a group of companies should therefore check the registration and the required notifications at an early stage.
Does goods transport to Italy also fall under the posting rules?
In the road transport sector, not all journeys are subject to the posting rules. Pure bilateral transports, for example a delivery from Germany to Italy followed by the return journey, are generally not regarded as postings.
A posting exists, however, in particular in cases of cabotage and in other relevant cases. This point is often underestimated, especially in the logistics sector. Companies should therefore examine each individual case to determine whether, in addition to the transport, an additional service is provided in Italy.
When is it no longer a posting to Italy?
There is no posting to Italy if the person concerned already lives in the country to which he or she is to be posted. In that case, this is not a posting, but an Italian local employee.
In such a case, a mere posting notification is not sufficient; instead, an Italian employer registration or an Italian company may be required. This distinction is particularly important because an incorrect classification may lead to incorrect notifications and further consequences.
What is the difference between posting and an Italian local employee?
In the case of a posting, the employee basically remains assigned to the foreign employer and is only deployed in Italy for a defined period of time.
An Italian local employee exists, by contrast, if the person already lives in Italy or if the activity is carried out permanently in Italy and there is no longer merely a temporary posting. In this case, the law on posting does not apply, but rather ordinary employment in Italy. For companies, this difference is crucial because different obligations arise in relation to registration, insurance and ongoing administration.
What obligations exist in the case of a posting to Italy?
In the case of a posting to Italy, various documents must be organised and notifications must be submitted. These include, in particular, the contractual basis, the A1 certificate, where applicable individual notifications in the home country, in some cases residence-related documents for non-EU citizens, as well as registration and notification with the Italian Ministry of Labour and Social Policies.
In addition, documents must be carried, records must be retained and Italian rules on working time, holidays, rest periods, occupational safety and remuneration must be observed. The obligations therefore go far beyond a mere online notification.
Which documents must the company organise itself in the home country?
Certain documents must be organised by the company itself. These include, in particular, the posting agreement, contract for work and supply or supply agreement as the legal basis for the assignment, the A1 certificate for social security in the home country, individual notifications in the home country and, in certain cases, a residence permit or visa for non-EU citizens.
The translation of the documents to be carried and their actual availability also belong to the points that are not automatically replaced by the Italian notification.
What is the A1 certificate in the case of a posting to Italy?
The A1 certificate confirms that, in the event of a posting, the employee continues to remain socially insured in the company’s home country. It must be applied for there.
In practice, this certificate is a central document because it proves the social security classification during inspections. Companies should not postpone the application until shortly before entry, as missing documents may cause problems during inspections.
Must a posting to Italy be registered with the Italian Ministry of Labour and Social Policies?
Yes, since 26 December 2016, in the case of posting employees to Italy, as well as in cases of field service, secondment and cabotage, registration in a dedicated portal is mandatory.
In addition, a separate notification is required for each posting.
By when must the posting notification in Italy be submitted?
The posting company must submit the electronic notification to the Italian Ministry of Labour and Social Policies no later than the day before entry into Italy.
This deadline is particularly important in practice because a late notification may already constitute a breach of duty. Companies should therefore organise their internal processes in such a way that all data is available in good time. Spontaneous assignments without prior notification are risky.
Must a separate notification be submitted for each posting?
Yes, an independent notification must be submitted for each posting. It is therefore not sufficient merely to register the company once in the portal.
The specific data must be transmitted for each individual assignment. In practice, this is particularly relevant in the case of several employees, short assignments or frequently changing projects, because deadlines or individual notifications can easily be overlooked in such cases.
Which data must be included in the posting notification?
The notification must include, in particular, the master data of the posting company, the master data of the employee to be posted, the master data of the receiving company, as well as a contact person domiciled in Italy and authorised to represent the company before the authorities.
This last point in particular is often underestimated. The notification is therefore not merely a formal notice of presence, but contains several details that must be complete and correct.
Is a contact person in Italy required in the case of a posting to Italy?
Yes, the notification must indicate a contact person domiciled in Italy and authorised to represent the company before the authorities.
This person must ensure the receipt and dispatch of documents. It is therefore not a merely symbolic indication, but a concrete function in dealings with the Italian authorities. If this person is missing or incorrectly designated, this may lead to sanctions.
What does the contact person in Italy do in the case of a posting?
The contact person in Italy acts as the point of contact vis-à-vis the authorities and must ensure the receipt and, where applicable, the dispatch of documents.
Its function is therefore particularly relevant in practical and legal terms when documents are requested or notifications are served. Companies should take this point seriously because the proper designation of a representative is an independent component of the reporting obligations.
Which Italian working conditions must be observed in the case of a posting?
Compliance with the provisions applicable in Italy regarding occupational safety, working time, holidays, rest periods and the protection of minors is mandatory.
In addition, remuneration also plays an important role, in particular to avoid social dumping. Companies must therefore not assume that only the rules of the home country apply. During inspections, it is also checked whether these Italian minimum standards are complied with.
Must remuneration be adjusted in the case of a posting to Italy?
Yes, remuneration must be supplemented or adjusted, in particular with regard to minimum pay, overtime premiums and severance pay, in order to avoid social dumping.
This means that remuneration cannot be assessed solely according to the country of origin, but must be compared with the Italian requirements. A frequent mistake in practice is to submit only the notification without comparing the wage situation in both countries.
When can wage tax arise in Italy in the case of a posting?
As a general rule, wage tax may arise in Italy if the conditions of the so-called 183-day rule are not fulfilled.
The right to tax generally remains with the employee’s state of residence provided that the employee does not stay in Italy for more than 183 days within a period of 12 months, that the remuneration continues to be paid by the foreign employer and that the costs are not borne by an Italian permanent establishment or an Italian company.
If these conditions are not fully met, the right to tax generally passes to Italy, with the result that wage taxation must be carried out there. In such cases, it may be necessary to set up a so-called shadow payroll in Italy through which the Italian wage tax obligations are fulfilled, even if payroll accounting continues to be carried out by the foreign employer. Companies should therefore monitor longer assignments not only from a labour law perspective, but also from a tax perspective.
How long may a posting last?
The frequently mentioned time limits in the field of postings concern different legal areas and must therefore be considered separately:
- Under social security law, a posting may generally last up to 24 months while maintaining the system of the sending state, provided that an A1 certificate exists.
- Under labour law, the European Posting of Workers Directive provides that, after 12 months, or after 18 months if a corresponding notification is made, extended working conditions of the host state must be applied.
However, this does not constitute a maximum duration of the posting, but concerns exclusively the scope of the labour law provisions to be applied. There is therefore no single uniform maximum duration for postings.
How long must documents relating to a posting to Italy be retained?
All documents must be retained for at least two years from the end of the posting.
This obligation is important in practice because inspections and enquiries may take place not only during the assignment itself. Companies should therefore ensure proper documentation and archiving. Anyone who destroys documents too early after the end of the project creates an unnecessary risk.
Who monitors compliance with the posting rules in Italy?
The Italian Labour Inspectorate, namely the INL, is responsible for monitoring compliance with the posting rules.
Not only the formal posting notification is checked, but also the documents that must be carried or made available. These include, for example, proof relating to social security, the authenticity of contracts and the required notifications and permits in the case of non-EU citizens.
Which sanctions apply in the event of breaches of the posting obligations in Italy?
In the event of breaches, the following sanctions in particular apply:
- failure to submit the posting notification: from 180 euros to 600 euros per posted employee
- missing documents or documents not made available: from 600 euros to 3,600 euros per posted employee
- failure to appoint or incorrect appointment of the person authorised to represent the company: from 2,400 euros to 7,200 euros
Can the receiving company in Italy also be sanctioned?
Yes, under certain circumstances the receiving company may also be sanctioned if the posting is a “false” or incorrect posting.
The amounts are 60 euros per employee and per working day, with a minimum of 6,000 euros and a maximum of 60,000 euros. This shows that not only the posting employer, but also the Italian counterparty bears its own risk.
Why is posting to Italy often complex in practice?
The registration and notification process with the Italian Ministry of Labour and Social Policies is often very complex.
In addition, the portal is partly available only in Italian and English and, besides the notification, numerous accompanying obligations must be observed. Typical mistakes therefore arise not only with deadlines, but also with data entry, the designation of the contact person, the documents to be carried and the review of remuneration and tax obligations. Especially in the case of recurring assignments, a structured preparation is crucial.
Further information can be found on our page about posting employees to Italy.