Authorities take steps to reduce red tape on employee notifications

8 Feb 16

ITALY

IMPACT – MEDIUM

What is the change? The Italian government continues to take steps to streamline the rules for notifying authorities of important employment changes.

What does the change mean? Employers must use the CO e-Service to notify the appropriate Employment Center of key employment changes. For non-EU employees, employers are no longer required by law to send a separate notification to the Immigration Office (Sportello Unico per L ‘Immigrazione). However, because the changes are new and implementation may vary in different parts of the country, employers are advised to continue sending the Immigration Office separate notifications for major changes, such as the end of an employee’s assignment, the cancellation of an employee’s contract or a change in an employee’s place of work.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Work permits.
  • Who is affected: Companies employing non-EU nationals working in Italy.
  • Business impact: The changes are designed to reduce red tape for businesses employing non-EU nationals.

Background: The Italian government requires employers to notify authorities of certain employment changes. Those that require a mandatory employment communication include when an employee is hired, transferred, assigned to work at a company in Italy (even when the employee remains employed by a company outside of Italy), or has a contract end or canceled.

Employers who fail to comply with these requirements face fines ranging from €250 to €1,500 per employee.

The government has taken steps recently to implement two legislative decrees designed to make the notification process easier in cases involving non-EU nationals. Under the old process, employers had to send mandatory employment communications to both the relevant Employment Center and Immigration Office. The new system, however, automatically generates duplicate notifications that are sent to the National Social Security Institute, the Italian Workers’ Compensation Authority, the relevant Immigration Office and any other social security institutions.

BAL Analysis: While the change in procedures may ultimately help businesses by making mandatory employment communications easier, employers are still advised to notify immigration authorities of major changes, including the end of an employee’s assignment, the cancellation of an employee’s contract or a change in an employee’s place of work. Employers who are not sure whether other types of employee changes should be reported separately to immigration authorities should contact their BAL attorney or their local Immigration Office.

This alert has been provided by the BAL Global Practice group and our network provider located in Italy. For additional information, please contact your BAL attorney.

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