Transnational posting: Italy has implemented the EU directive on working conditions

2 October 2020
Thanks to Leandro Fulvi for collaborating on this article

By means of Legislative Decree No. 122/2020 (“Legislative Decree”), Italy has integrated EU Directive No. 2018/957 regulating the transnational posting of workers (in force as of September 30, 2020).

The Legislative Decree, which embraces the principle of the underlying directive, states that if employment terms and conditions provided in Italy by law and national collective bargaining agreements for local employees who perform similar work activities are more favorable than those applied in their country or countries of origin, they must also be applied to transnational workers posted there.

According to the Legislative Decree, for the permissible period of 12 months (maximum period, extendable to 18 months with justified notification from the employer) only certain listed terms and conditions of employment must be granted to posted workers, including: (i) equal treatment of men and women; (ii) health and safety in the workplace; (iii) protective measures with regard to pregnant women or women who have recently given birth; (iv) maximum work periods and minimum rest periods; (v) minimum paid annual leave; (vi) remuneration level and overtime rates; (vii) condition of workers’ accommodations; and (viii) allowances and reimbursement of travel, board, and lodging expenses.

If a transnational worker’s posting exceeds the abovementioned period, not only the listed terms and conditions must be granted but the transnational worker shall also be subject to all employment terms and conditions set out in Italy by law and national collective bargaining agreements, with only three exceptions: (i) the procedures, formalities and conditions terminating an employment contract; (ii) non-compete clauses; and (iii) the rules on supplementary occupational retirement pension plans.

Finally, it is noteworthy that the application area for the provisions has expanded: indeed, the new regulation on transnational posting also applies to temporary staffing agencies that post workers to client companies with headquarters or a production unit in an EU member state.

The regulations of the Legislative Decree in question do not apply to the transnational provision of services in the road transport sector.

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