Notice of Employment Terms in Israel vs the Italian Employment Contract and CCNL

Israeli founders hiring in Italy usually start with the offer letter they use in Tel Aviv and ask what to change. The honest answer: the letter is the smallest part. In Italy most of the employment relationship is set by statute and by the national collective agreement for the sector (CCNL), and the contract mainly places the employee inside that framework. Full overview on Italy vs Israel .

Israel: written notice of terms on top of a statutory floor  

Israeli law requires the employer to give the employee written notice of the main terms of employment: identity of the parties, start date, job, working hours and rest day, pay components, social benefits such as pension, and the applicable collective agreement if any. The notice is due within a short period after starting work.

Beyond that, the Israeli relationship rests on a set of protective laws (minimum wage, hours of work and rest, annual leave, sick pay, severance, advance notice) and on extension orders (tzavei harchava) that apply some collective agreement terms to the whole private sector: mandatory pension, recuperation pay and travel expenses are the familiar ones. In a typical tech company there is no sector collective agreement, so the individual contract does a lot of work: salary, options, Section 14 severance, keren hishtalmut, confidentiality and IP assignment.

Italy: contract plus CCNL  

In Italy:

• Written information at the start. The Transparency Decree (Legislative Decree 104/2022) lists what the employer must give in writing: parties, place of work, job title and level, start date, contract type and duration, probation, training, leave, notice, pay elements, working time, the CCNL applied and the social security bodies. Hiring is reported online to the labour authorities (UniLav) by the day before the start.
• The CCNL. Each employer applies a CCNL for its sector (commerce and services, metalworking, telecoms, and so on). The CCNL sets the job levels (livelli), the minimum pay for each level, the 13th month (and often a 14th), probation length, notice periods, sick leave job protection and many allowances. For an Israeli software company the common choices are commerce/tertiary or metalworking, depending on the activity.
• Contract types. Open-ended (tempo indeterminato) is the default. Fixed-term contracts can run 12 months freely and up to 24 months with a reason (art. 19 Legislative Decree 81/2015). Part-time must state the distribution of hours in writing.
• Probation. Valid only if agreed in writing before the start, with the length capped by the CCNL, often from one to six months by level.

Side by side  

Things Israeli offer letters do that do not work in Italy  

• “Global salary” covering overtime. Israel allows global overtime arrangements within limits. In Italy, all-inclusive pay must respect the CCNL minimums and overtime rules; a lump sum that silently absorbs overtime is risky.
• Section 14 clause. There is no Italian equivalent: TFR is statutory, accrues on every exit and cannot be swapped for a pension clause, although the employee can choose to send TFR to a pension fund.
• Converting the contract to a contractor arrangement. If the person works like an employee, Italian law treats them as one. See the Italian employment contract .
• English-only contracts. Allowed, but a bilingual contract is safer if a dispute reaches an Italian labour judge.

Pay: from NIS gross to RAL  

Italian salaries are quoted as RAL (retribuzione annua lorda), gross annual pay, usually split into 13 or 14 monthly payments. An Israeli monthly gross times 12 is not comparable: compare the RAL to the Israeli annual package including recuperation pay, and add employer costs separately. The cost calculator shows the full Italian cost; the Bituach Leumi vs INPS guide explains the contribution side.

Working time in the contract  

Israel’s Hours of Work and Rest Law sets a standard week and overtime premiums; many tech employees are on global overtime or senior-role arrangements. In Italy the standard week is 40 hours unless the CCNL says less, with an average maximum of 48 hours including overtime (Legislative Decree 66/2003) and overtime paid at CCNL premiums. Senior roles (quadri, dirigenti) have more flexibility, but the contract should still state hours. More in annual leave, sick pay and working hours .

Choosing the CCNL  

The CCNL is not chosen to minimise cost; it should match the company’s activity. Applying a CCNL signed by the most representative unions also matters for tax incentives and for defending pay levels. Once a CCNL applies, the job level you assign determines minimum pay, notice and probation, so get the level right at hiring.

What this means if you hire through an EOR  

With an Employer of Record, the Italian entity is the legal employer. It applies its CCNL, assigns the level, issues the Transparency Decree information, files the UniLav notification and runs payroll. You define the role, the salary and the start date, and you manage the day-to-day work. Your Israeli contract templates stay in Israel; the Italian contract is drafted under Italian law.

Read Italian employment contracts , compare other countries on Italy vs your country or contact us for a quote.

Related guides for Israeli companies  

• Shimua and advance notice vs Italian dismissal rules
• Pitzuim and Section 14 vs TFR
• Non-competes after Checkpoint vs art. 2125

General information, not legal advice.