Modern Awards and the NES vs the Italian CCNL: Employment Contracts Compared

Australian employers already work inside a layered system: the Fair Work Act 2009, the National Employment Standards (NES), a modern award or enterprise agreement, and then the contract. Italy has a very similar layering, which makes it easier to explain than for most countries: statute, then the CCNL (contratto collettivo nazionale di lavoro) for the sector, then the individual contract. The big difference is coverage. Full comparison on Italy vs Australia .

Australia: NES, awards and the contract  

The NES are the floor for every employee in the national workplace relations system. Fair Work Ombudsman guidance is clear that an award, an employment contract or an enterprise agreement cannot provide for less than the NES or exclude it. The NES cover maximum weekly hours, flexible working requests, casual employment, parental leave, annual leave, personal/carer’s and other leave, community service leave, long service leave, public holidays, superannuation, notice and redundancy pay, and the Fair Work Information Statement.

On top of the NES:

• Modern awards set minimum pay rates, penalty rates, allowances and classifications for an industry or occupation.
• Enterprise agreements are negotiated and approved by the Fair Work Commission.
• Award-free employees, often professionals and managers above award classifications, get the NES plus the National Minimum Wage, which from 1 July 2026 is $26.44 an hour or $1,004.90 a week (Fair Work Ombudsman).
• New starters must receive the Fair Work Information Statement, and casuals the Casual Employment Information Statement.

Many Australian tech and services companies hire senior staff on award-free contracts and rely on the contract plus the NES.

Italy: statute, CCNL and the contract  

In Italy, practically every private employer applies a CCNL. It is the closest thing to an Australian modern award, but it goes further:

• Coverage of everyone. The CCNL covers junior staff, middle managers (quadri) and executives (dirigenti, who have their own CCNL). There is no “award-free” senior professional.
• Job levels and minimum pay. Each CCNL has a classification ladder (for example levels 1 to 7 plus quadri in the Commerce CCNL) with a minimum monthly pay for each level.
• 13th month, often 14th. Pay is usually expressed as an annual gross figure (RAL) spread over 13 or 14 instalments.
• Notice, probation, sick-leave job protection, extra leave hours (ROL), overtime premiums and supplementary health funds are all in the CCNL.
• No statutory national minimum wage. The CCNL minimums play that role.

The written contract or hiring letter must include the information listed in the Transparency Decree (D.Lgs 104/2022): parties, place, job level and CCNL, start date, probation, pay and its components, working time, leave, notice and social security bodies. The hire is notified online to the labour authorities (UniLav) by the day before the start.

Side by side  

Fixed-term, casual and probation  

Australian employers are used to casual employment with a loading in place of leave. Italy has no equivalent “casual” category. A short engagement is normally a fixed-term contract: free for the first 12 months and up to 24 months only with a reason permitted by law or the CCNL (art. 19 D.Lgs 81/2015, as amended by DL 95/2025). Fixed-term workers get the same pro-rata conditions as permanent staff, including the 13th month, leave and TFR.

Probation (periodo di prova) must be agreed in writing at the start, and its maximum length depends on the CCNL and the job level, commonly from a few weeks to six months. During probation either side can end the relationship without notice or reason. After it ends, the full dismissal rules apply. Compare that with the Australian minimum employment period for unfair dismissal, covered in unfair dismissal vs Italian dismissal rules .

Working time  

The NES set a maximum of 38 ordinary hours a week plus reasonable additional hours. Italy sets a 40-hour standard week, a 48-hour weekly average including overtime, and an overtime cap of 250 hours a year unless the CCNL says otherwise (D.Lgs 66/2003). Most CCNLs fix a 40-hour week (some 38 or 37.5) and set overtime premiums.

Common questions from Australian companies  

Can we offer an “award-free” contract in Italy? No. You choose the CCNL that fits the business activity, and the employee’s level determines minimum pay. You can pay above the minimum (superminimo) but never below.

Can the contract be in English? Yes, but an Italian version is advisable and mandatory communications are in Italian. The governing law is Italian for work performed in Italy.

Do we need to negotiate with unions? Not to hire. Applying the CCNL is enough. Company-level agreements are optional.

Can we pay a salary package with super-style deductions? The Italian equivalent of super is mandatory INPS contribution plus TFR, both calculated by payroll. See superannuation and PAYG vs INPS and IRPEF .

What this means if you hire through an EOR  

An Employer of Record picks the right CCNL, places the role at the correct level, writes a compliant Italian contract with the Transparency Decree information, notifies the hire and runs payroll with the 13th and 14th month built in. You agree the salary and the job content; the EOR handles the rest. Read more about the Italian employment contract , compare with other countries , check the full cost in the calculator or contact us .

Related guides for Australian companies  

• Unfair dismissal in Australia vs dismissal rules in Italy
• Notice and redundancy pay vs TFR and collective dismissal
• Annual, personal and long service leave vs Italian leave

General information, not legal advice.