General Questions
Why will employees receive 12 and not 14 payments?
Italian law provides for an annual 13th-month payment in December and a 14th-month payment in June. Instead of paying these as lump sums, we distribute them evenly across 12 months, increasing the employee's monthly salary accordingly.
What is TFR, and why do we need to pay it? Is it required in cases of resignation?
TFR (Trattamento di Fine Rapporto) is a mandatory severance equivalent governed by the Collective Bargaining Agreement (CBA). Employers must contribute 7.4% of the annual salary to a reserve, which is paid out to employees when they leave the company (due to dismissal, resignation, or retirement).
At the start of employment, employees decide where to allocate TFR funds:
Company-held TFR: Paid out at the end of employment.
Government Fund Allocation: Stays in the government fund upon employment termination.
Since we accrue TFR monthly, no additional costs arise at the time of termination.
Is TFR subject to tax?
Yes. TFR is taxed at an average rate based on the total income of the last five years, calculated using progressive IRPEF tax rates at the time of employment termination.
Can you process tax relief for "Rientro dei Cervelli" / "Lavoratori Impatriati"?
Yes. If an employee already benefits from tax relief, it will continue under the new contract. The applicable law depends on when the employee moved back to Italy. Employees must provide auto-certification from their previous employer, or if applying for the first time, we will guide them through the process.
How does an employee resign?
Employees must submit their resignation through the ClickLavoro government website to comply with regulations.
What is the holiday entitlement for employees?
Employees receive 22 working days of annual leave under the 'Commercio e Terziario' CBA, plus additional entitlements:
Ex Festività: 4 days (32 hours)
ROL (Reduction of Working Hours): Accrual depends on seniority:
0 hours in the first 2 years
50% accrual from year 2
Full accrual (56-72 hours) after 4 years
Unused leave:
Ex Festività and ROL are paid out if unused by June 30 of the following year
Annual leave: Up to 10 days can be carried over, to be used within 18 months
Prorated leave: For employees working less than 40 hours per week, ROL and Ex Festività are prorated accordingly.
Can employees sign contracts with Aruba PEC signature?
Yes, Aruba PEC is part of the QES (Qualified Electronic Signature) process, and employees can use it for signing documents.
What happens if a bank holiday falls on a Sunday?
Employees receive one daily salary share for bank holidays that fall on Sundays, as required by Law no. 260/1949. If employees work on a Sunday holiday, they are entitled to overtime pay or compensatory rest.
If an employee has already completed Health & Safety training and a medical check, do they need to do it again?
Medical check: Must be redone, as it is linked to the previous employer.
H&S training: Valid for 5 years. If the employee has a certificate from a previous employer, it remains valid until expiry.
What NCBA applies to this contract?
Under our contract, the applicable CCNLs (National Collective Bargaining Agreements) are:
Commercio (for the client)
Agenzie di somministrazione di lavoro (due to labor leasing regulations)
If the client changes their CCNL, the new agreement will apply.
Can you hire "Dirigente" (executive) level employees?
Yes, we can hire employees at the Dirigente level under our setup.
What are the options for TFR allocation?
Employees can choose to:
Keep TFR in the company
Accrue TFR under the designated NCBA fund (e.g., Fon.Te. for Omnipresent)
Accrue TFR under an open fund of their choice (employee must provide enrollment and payment instructions)
How does Fon.Te. contribution work?
(Specific details can be found in the document: SOMMINISTRATI_2024_WEB_compressed.pdf)
Questions About Employment Documents
What are the differences between employment documents?
The employment structure consists of multiple agreements:
Leasing Agreement (between Omnipresent and the client) - formalizes the hiring arrangement.
Employment Contract (between Omnipresent and the employee) - establishes the employment relationship.
Assignment Agreement (between Omnipresent and the employee) - assigns the employee to work for the client.
Smart Working Agreement - formalizes remote work conditions.
What is the "Availability Allowance," and when is it paid?
It applies only if an employee is not assigned to a client.
Since employees are always assigned under our Employer of Record (EOR) model, this allowance will not be paid.
Why is the client’s address listed in the Assignment Letter if the employee works remotely?
The Smart Working Agreement clarifies that the employee works remotely.
Italian labor laws require us to list the client’s address in the Assignment Letter, even if work is remote.
There are no social security or tax implications for the employee as the Smart Working Agreement specifies remote work.
How are employment levels and classifications determined?
Under Italian CBAs, employees are classified into three groups:
Group A: Executives, Middle Managers (Quadri), and high-level employees.
Group B: Conceptual workers, specialized professionals, and intermediate roles.
Group C: Skilled and manual workers.
Employment levels range from Dirigente (executive) to Level 7 (cleaning staff), depending on job complexity and responsibility.
Why does the contract refer to a 40-hour workweek for part-time employees?
The NCBA-prescribed salary components (e.g., minimum salary, allowances) are based on 40 hours per week. However, the actual salary is prorated for part-time employees based on their contracted hours.
Can an annual base salary be added to the employment contract?
No, due to Italian regulations, the contract must specify salary in installments. The 13th and 14th months' pay are spread over 12 months to increase the monthly salary.
What happens if an employee works on a bank holiday?
Employees are entitled to either:
30% extra pay + 1 additional day of leave
130% extra pay (instead of compensatory leave)
Who is responsible for H&S and medical checks?
Our local provider handles all H&S and medical check requirements. No action is needed from the client.
Why do we need to sign the Client Terms again?
The updated Labour Leasing Agreement applies only to Italy. The client’s existing terms remain unchanged for other countries.
What are the availability hours in the Smart Working Agreement?
Availability hours indicate when employees must be reachable but do not define strict working hours, allowing flexibility in remote work arrangements.
What is the place of work in the employment contract, address in Bologna? / Can this have tax implication for the employee?
This is the address of Omnipresent, it is considered to be the address where the employee will work if not assigned to the client. Given the EoR structure, the employee will always be assigned to the client; hence, it is the Assignment Agreement (and smart-working agreement) that governs the place of work. The place of work in the employment contract is not as important because it will be very rare for the employee not to be assigned to a client during their employment with an EoR (i.e., us).
Accrual of vacations, paid leave, and reductions in working hours in the Employment contract, what does this means?
Pursuant to Art. 30 of the NCBA for Temporary Agencies, the accrual of vacations, paid leave and reductions in working hours, to the extent provided for by the individual NCBAs applied by the user company, shall be made by applying the following formula for each of the three institutions: [annual hours due/monthly hourly divisor x 12] x (worked hours + due hours) (hours due are those not worked which, when paid, give entitlement to accrual (e.g. sickness, accident, public holidays, etc.).
This clause means that annual leave continues to accrue during sickness, accident and public holidays. Untaken sick leave does not have to be paid out upon exit. Only annual leave that are unused will be due upon termination. Moreover - Italy allows an employee to take 180 days of sick leave during one calendar year (to be calculated starting from the last sick leave).
During sick leave, the employer will shoulder 50% of the salary for the 4th day to 20th of sick leave; 2/3 from 21st day to onwards. The government will also make sick leave payments so that the employee will receive, from both the employer and the government in aggregate:
100% salary for the first three days of sickness;
75% for the 4th day to 20th;
100% from 21st day onwards
What does employment level/groups mean, and how is this decided?
See answer
See answer
In Italy, employees are classified based on the groups and employment level. This is governed by collective bargaining agreements (CBAs) and depend on the employees roles. Please find below information on the employment level and groups:
Classification level provided for by the NCBA for Temporary Agencies:
“1. The single classification of agency employees, in order to be harmonised with that provided for by the various NCBA adopted by the user companies, is grouped into 3 main areas in relation to the different professional contents possessed.
2. Also in relation to the provisions of Law No. 190/85, the distinction between middle managers (i.e. quadri) personnel with white-collar duties and personnel with non-white-collar duties, is maintained for the purposes of all the rules (laws, regulations, contractual, trade unions, etc.) that provide for differential treatment or that in any case refer to such qualifications.
3. (…) In view of the specific nature of the professional skills to be used in staff leasing, it is agreed to group employees
into three large homogeneous groups:
Group A: includes workers with high professional content such as executives, middle managers (i.e. quadri) and managerial employees.
Group B: includes conceptual workers, specialised workers and/or corresponding to the so-called intermediate categories with professional content characterised by operational but not decision-making autonomy and a high level of theoretical/practical knowledge.
Group C: includes skilled and orderly workers, who perform work under the guidance and control of others.
4. For the purposes of assigning the contractual classification level for each individual employment relationship, reference must be made, in accordance with the above classification in groups, to the different classification levels/categories envisaged for the specific tasks referred to in the NCBA of the user companies.”.
Group A: Dirigente, Quadro and Impiegato Level 1
Group B: the rest of the employees.
Group C: Blue Collar.
Employment levels:
*“Quadro" level (*and category)
Employees who perform on a regular basis management functions of relevant importance towards the realization of the company's goals, within the limits of pre-defined company strategies and projects, who may have discretionary powers and management responsibility also for the management and coordination of resources and persons or who are entrusted, with powers of self-determination, responsibility and with high, specialized professional skills, with the research and definition of projects of relevant importance towards the realization of the company's goals.
Level 1
Employees with duties of high professional content, possibly entrusted with executive direction responsibilities, who supervise productive units or an organizational function with powers of initiative and self-determination for operational matters, within the limits of the responsibilities they've been entrusted with. E.g.: system analyst, product manager, media planner, researcher.
Level 2
Employees who perform conceptual duties in conditions of operational autonomy and/or possess functions of coordination and control, as well as staff who use creativity in their work within a specific technical and/or scientific set of skills. E.g.: inspector, programmer, quality control specialist, senior accountant.
Level 3
Employees who perform conceptual or mainly conceptual duties requiring technical knowledge and experience and specialized, skilled workers who, in conditions of operational autonomy within the limit of their duties, perform activities requiring specific and adequate skills acquired with previous technical and practical training. E.g.: administrative accountant, administrative employee, marketing technician.
Level 4
Employees performing operational duties, including sales; employees performing duties requiring specific technical knowledge and technical/practical skills, however acquired. E.g.: retail clerk, basic accountant, truck driver, beautician.
Level 5
Employees performing duties whose execution requires normal knowledge and adequate technical-practical skills, however acquired. E.g.: clerk assistant, typist, archivist, car driver.
Level 6
employees who perform duties requiring simple practical knowledge. E.g.: usher, packager, bellhop, custodian.
Level 7
employees who perform cleaning duties.
Can an annual base salary be added to the employment contract?
The contract clause referring to the payment installments needs to stay unchanged, to stay compliant with the regulations prescribed to the Labour leasing agency. Italian law provides for an annual 13th month payment in December, and a 14th month payment in June. We will pay the accruals of 13th and 14th pay, monthly to the employees, they will be spread over 12 months. In this way, their monthly salary will be increased for the applicable amount. The same principle is applied in the current contract the employees have with our local team.
The employee is working part-time, why does the contract clause refer to the salary reflecting 40 h a week?
The Assignment letter in clause 9.1., and on the Leasing agreement in Prospectus mention the 40h, the reason for this is the following: Employee`s salary consists of Min. salary, Contigenza, Function allowance, 3rd element and Bilateral authority - these are the values prescribed by the National Collective Bargaining Agreement and are based on the 40h work week. In the employment contract, we need to show these values. It is clear that the employee will get paid the annual salary according to the shorter hours he has, but these statutory values need to stay unchanged (based on 40h a week).
What is the Availability allowance and when it will be paid out?
We are operating as a labour leasing agency, this means that the employee will have a contract with Omnipresent, and it will be leased to work for the client. Availability allowance is the amount the employee should get paid in case they are not leased to the client. The employee will always be assigned to the client due to our nature of an Employer of Records. Availability allowance will therefore not be payable.