Italy

Employment Legislation.

In Italy, there is normally a trial period of between 3 and 6 months after which it becomes extremely difficult to remove anybody from an organisation. Effectively you cannot be fired and you would expect to have to pay 6-12 months salary in order to dismiss an employee.

You cannot dismiss an employee for reasons of performance in sales. Employees are expected by law to contribute to social taxes.

Availability of Trained Staff.

The Availability of staff is reasonable and tends not to vary much between Milan and Rome the two main business areas. A common method of attracting middle to high level staff is through advertising which tends to be a long and tedious task.

The most common and generally used technique of Recruitment is 'who you know' everyone has their own network and constantly update and improve it. Unless you or the recruiting company have a great network ("Roladex") already in Italy, recruitment can be a major headache.

Cost of Employment

Salaries in Italy are comparatively lower than that of the UK and Central Europe, however, additional costs include, social and medical taxes.

The Italian culture is to have a fully expensed Company car and not to receive a car allowance.

Language and Cultural Factors

The Italians knowledge of the English language is reasonable, however not comparable to that of the Germans Dutch or French, where almost everyone in business speaks to a high level. In Italy this is not the case and one cannot assume.

You will often hear of senior level Italian employees referring to additional job titles such as Dirigente or Quadro. Basically, these are government backed employment levels that carry with them certain rights, privileges and entitlements as a guaranteed minimum in addition to any contractual obligations.

Dirigent is a commonly known title to an employee normally with a minimum ten years of high level experience. If a Company were looking to employ an Italian to set up an Italian Subsidiary they would need to be at Dirgente level in order to authorise it. It is not a difficult process to organise somebody for this status especially if they already have attained Dirigente level. Along with Dirigente comes a need for a higher social security payments by the employee, Dirigente also ensures greater employee protection. Quadro is one level lower.

Travel and Communication

The majority of IT Technology businesses are based in either Milan or Rome. Commercial property costs are quite competitive for Europe and there is reasonable availability of good standard office space more so in Milan. Milan has the broader market and Rome is home to Telecom Italia. The Italians are constantly on planes from Milan to Rome and Vice Versa and will tell you that location does not matter. Broadly speaking Milan is the most appropriate base unless there is a significant client based in Rome eg Telecom Italia. The Italian rail network is quite extensive and reasonably reliable.