The length of service refers to the duration of an uninterrupted employment relationship between an employee and the same employer. Under Italian labour law, length of service can affect compensation and other labour law entitlements.
The seniority allowance (scatto di anzianità) is of particular importance. It is an additional component of the gross salary granted to employees based on their length of service.
Seniority allowances are not uniformly regulated by law, but rather by the applicable collective bargaining agreement (CCNL – Contratto Collettivo Nazionale di Lavoro).
The individual collective bargaining agreements provide for different rules. In particular, they differ in the following respects:
In the collective bargaining agreement for trade and services, for example, the seniority allowance is generally granted every three years. A maximum of ten allowances can be earned in total.
Under the collective bargaining agreement for the metalworking trade and the metal industry, the seniority allowance is generally granted every two years. As a rule, the maximum number is five allowances.
Seniority allowances already earned generally remain in effect even in the event of subsequent wage increases under the collective bargaining agreement. They are therefore not normally replaced or offset by general salary increases.
However, special rules may apply in the event of a change in classification. Whether the seniority allowance can be offset against a salary increase depends on the specific collective bargaining agreement.
For example, the collective bargaining agreement for trade and services expressly stipulates that the seniority allowance is not offset in the event of a change in classification.