Employing in Italy vs Singapore

The legal differences a Singapore company runs into when it hires its first person in Italy. In Singapore, much of the relationship is left to the contract, and core Employment Act protections are scaled by salary. In Italy, statute and the national collective agreement for the sector (CCNL) cover almost every employee, including managers, and set minimums the contract cannot go below.

Topic

Singapore

Italy

Who is protected

The Employment Act covers employees under a contract of service, but Part 4 (hours, overtime, rest days) applies only to workmen earning up to S$4,500 and non-workmen up to S$2,600 basic a month. Part 4 does not cover all managers or executives. Source

Statute and the applicable CCNL apply to every employee, from junior staff to managers (quadri) and executives (dirigenti, who have their own CCNL). There is no salary threshold for protection. Source

Written terms

Key Employment Terms in writing within 14 days of the start, for Employment Act employees on contracts of 14 days or more. Source

Written contract or hiring letter with the information listed in the Transparency Decree, given at the start; the hire is notified online (UniLav) by the day before. Source

Ending employment

Either side can end the contract with notice or salary in lieu; the employer does not have to give a reason, though dismissal must not be wrongful (for example discriminatory or to deprive benefits). Source

After probation, dismissal needs just cause or a justified subjective or objective reason, stated in writing. Unjustified dismissal leads to compensation and, in some cases, reinstatement. Source

Notice

Contract governs; statutory default from 1 day (under 26 weeks of service) to 4 weeks (5 years or more). Source

Set by the CCNL by job level and seniority, typically weeks to several months. Source

Severance

No statutory retrenchment benefit; tripartite norm is two weeks to one month's salary per year of service for employees with at least 2 years. Source

TFR: deferred pay of roughly one-thirteenth-and-a-half of annual pay accrued each year and paid on any exit, including resignation. Source

Social contributions

CPF for citizens and PRs: from 1 January 2026, 17% employer and 20% employee (age 55 and below) on Ordinary Wages up to S$8,000 a month, annual ceiling S$102,000. Foreigners on work passes do not contribute. Source

INPS on the whole salary, roughly 30% employer and 9.19% employee (plus 1% above €56,224 in 2026), plus INAIL insurance, the 13th month and TFR. Applies to every employee, whatever the nationality. Source

Annual leave

7 days in year 1 rising to 14 days, after 3 months of service, for Employment Act employees. Source

At least 4 weeks a year from day one, plus 12 national public holidays from 2026 (4 October restored by Law 151/2025) and CCNL leave hours (ROL). Source

Sick leave

After 3 months: up to 14 days outpatient and 60 days hospitalisation (inclusive) a year. Source

Paid from day one with an online medical certificate; INPS and employer share the cost; job protected for a period set by the CCNL. Source

Maternity and paternity

16 weeks Government-Paid Maternity Leave and 4 weeks paternity leave, largely reimbursed by the Government within caps, plus shared parental leave. Source

5 months compulsory maternity leave paid at 80% by INPS (often topped up by the CCNL), 10 working days compulsory paternity leave at 100%, plus parental leave. Source

Non-compete

Common-law restraint of trade: enforceable only if it protects a legitimate interest and is reasonable. No payment required by law. Source

Art. 2125 Civil Code: in writing, limited in object, time (5 years for executives, 3 for others) and place, and paid for. Without payment it is void. Source

What it means for your budget

In Singapore, CPF stops at the wage ceiling and foreign employees on work passes do not contribute at all. In Italy, INPS applies from the first euro for every employee, and the 13th month and TFR come on top. The total cost of an Italian employee is well above gross salary, but it is predictable because it follows the CCNL tables. Run the numbers in the cost calculator.

What it means for your plans

Singapore managers are used to ending employment with contractual notice and no stated reason. In Italy that freedom lasts only through probation. After that, every dismissal needs a reason that can be proved. Use probation deliberately and plan headcount with that in mind. If you have no Italian company, an Employer of Record holds the contract, runs payroll and handles INPS for you.

Employing in Italy vs Singapore

What it means for your budget

What it means for your plans

Guides for Singapore companies