Employing in Italy vs the UK
The main differences a UK company runs into when it hires its first person in Italy. In the UK most terms come from statute and the contract. In Italy they come largely from the national collective agreement for the sector (CCNL), which applies to almost every job.
| Topic | United Kingdom | Italy |
|---|---|---|
| Employer social charges | Employer Class 1 National Insurance of 15% on earnings above £96 a week (2026/27), plus at least 3% auto-enrolment pension on qualifying earnings between £6,240 and £50,270. Source, source | Around 30% INPS contributions on the whole salary, with no threshold, plus INAIL accident insurance depending on the role. The employee pays 9.19% (plus 1% on pay above €56,224 in 2026). Source Add the 13th month and TFR (below). |
| Ending employment | Unfair dismissal protection currently after 2 years of service (1 year in Northern Ireland). The Employment Rights Act 2025 cuts this to 6 months from 1 January 2027 (SI 2026/559). Automatically unfair and discriminatory dismissals need no service. Source, Commencement regulations | After probation, every dismissal needs a reason: just cause, or a justified subjective or objective reason. No qualifying period. Unfair dismissal can lead to compensation or reinstatement. |
| Notice period | Statutory minimum: one week after one month of service, then one week per full year from 2 years, up to 12 weeks. Contracts often give more. Source | Set by the CCNL, by job level and seniority. Typically from a few weeks to several months. If notice is not worked, the civil code (art. 2118) requires pay in lieu, with no need for a PILON clause. |
| Probation | No statutory concept; set by the contract. | Only if written in the contract. Length set by the CCNL, up to 6 months. Either side can end it without notice. |
| Redundancy pay vs TFR | Statutory redundancy pay after 2 years: half a week to one and a half weeks' pay per year of service by age, weekly pay capped at £751, maximum £22,530 (from 6 April 2026). Source | TFR: about 6.91% of annual pay is set aside every year and paid out whenever employment ends, including resignation. It is deferred pay, not a redundancy payment, so it is a fixed cost to budget from day one. |
| Paid holiday | 5.6 weeks (28 days on a five-day week); bank holidays may be counted within it. Source | At least 4 weeks a year (D.Lgs 66/2003), plus national public holidays and the local patron saint's day on top. No individual opt-out from the 48-hour average week. From 2026 there are 12 national public holidays that can fall on a working day, after Law 151/2025 restored 4 October. Many CCNLs add paid leave hours (ROL and ex-festività). |
| Sick pay | Statutory Sick Pay of £123.25 a week or 80% of normal weekly earnings, whichever is lower, for up to 28 weeks, paid by the employer. Since the April 2026 reforms there are no unpaid waiting days and no lower earnings limit. Source Source | Paid sick leave with a medical certificate sent online to INPS. INPS and the employer share the cost as set by the CCNL, often up to full pay; the job is protected for a period set by the CCNL. |
| 13th and 14th month | No legal requirement; bonuses are contractual. | The 13th month is mandatory in every CCNL and paid in December. Some CCNLs add a 14th in June or July. Both are part of the annual salary (RAL). |
| Time to hire | The employee can start once you have done the right to work check and registered them on payroll (RTI). | The hire must be notified online (UniLav) by the day before the start. With us as Employer of Record, a contract is usually ready in about one to two weeks after you pick the person. Non-EU staff need a work permit first, which takes longer. |
General comparison for orientation, not legal advice. UK figures are statutory minimums for England, Scotland and Wales unless stated, sources read on 9 November 2026. Italian figures depend on the CCNL for the role.
What it means for your budget
A UK employer pays National Insurance only above a threshold and a small pension contribution. In Italy, contributions apply from the first euro, and the 13th month and TFR add more than 15% on top of base pay. The total cost of an Italian employee is well above the gross salary, but it is predictable because it follows the CCNL tables. Run the numbers in the cost calculator or read how employee cost is built up.
What it means for your plans
UK companies are used to a two-year window before unfair dismissal rules apply, falling to six months from 2027. Italy has no such window: after probation, every dismissal needs a reason. Use probation deliberately, write clear job descriptions and build notice into any change of plan. If you have no Italian company, an Employer of Record handles the contract, payroll and INPS for you.
Guides for UK companies
- Written statement vs Italian contract and CCNL
- Unfair dismissal vs Italian dismissal rules
- Notice and PILON vs Italian notice and pay in lieu
- Redundancy pay vs TFR and collective dismissals
- Holiday and working time
- SSP vs Italian sick leave and comporto
- Maternity, paternity and parental leave
- Restrictive covenants and IP vs Italian non-compete
- NI, PAYE and pension vs INPS, IRPEF and TFR