How it works

What is an Employer of Record?

A company that legally employs someone on your behalf. We hold the Italian employment contract and run payroll. You direct the work.

Do we need an Italian entity?

No. That is the point of the service.

Who manages the employee day to day?

You do: tasks, schedule, goals, tools, reviews.

How fast can someone start?

Usually within days of a signed offer for EU citizens. Visa cases take longer, depending on the permit.

Can we convert an existing contractor?

Yes. We move them to an employment contract, typically within 30 days.

Can we hire part-time or fixed-term?

Yes. Both are standard in Italy, with limits on fixed-term duration and renewals.

Costs and billing

What does it cost?

€250 per employee per month, plus the employment cost billed monthly on actuals.

What is in the employment cost?

Gross salary, employer social contributions, 13th month (and 14th where applicable), TFR, CCNL funds, and any benefits or expenses you approve.

What currency do you invoice in?

US dollars, from our US company.

How much more than salary does an employee cost?

It depends on salary and CCNL. Employer contributions are around 30%, plus 13th month and TFR. Use the calculator for a specific number.

Is there a deposit?

[deposit policy to confirm]

What about visas?

€2,500 per case for the work permit and visa process.

Can you run payroll if we already have an Italian company?

Yes, at €55 per payslip.

Employment rules

Can we terminate at will?

No. Dismissal needs a valid reason and a procedure. Probation, up to 6 months depending on the CCNL, is the period when either side can end it freely.

How much vacation do employees get?

At least 4 weeks a year, plus public holidays. CCNLs often add more paid hours off.

Do we need to provide health insurance?

No. Italy has a national health service funded by taxes. Some CCNLs include a supplementary health fund, which is part of the cost.

What is the TFR?

Severance pay set aside every year (about 6.91% of pay) and paid when employment ends.

What is a CCNL?

The national collective agreement for the sector. It sets minimum pay, levels, hours, notice and many benefits.

Can we include a non-compete?

Yes, if it is written, paid, and limited in time, place and scope.

Who owns the employee's work?

Your company. Our contracts include an IP assignment and confidentiality clause.

Equity, benefits and data

Can the employee join our stock plan?

Yes. Tax treatment in Italy depends on the plan. [confirm RSU/option treatment]

Which benefits are common?

Meal vouchers (tax-free up to €10 a day if electronic), company car, supplementary pension and health, and fringe benefits up to €1,000 a year (€2,000 with dependent children).

Where is employee data stored?

On our servers in the EU, under GDPR.

Can the employee work from another country?

Short trips are fine. Working from another country for longer changes where tax and contributions are due, so tell us first.

What happens if we later open our own entity?

We transfer employees to it without losing seniority, and help with the company setup through our partners.

Questions US companies ask us