In Italy there is special legislation governing any agreement between employer companies and the employees hired there.

It often happens that there are disputes concerning the employment relationship between the employing company and an employee hired by it: in these cases, foreign companies carrying out activities in Italy, perhaps through legal entities (companies) incorporated in Italy, use to conclude conciliation agreements with Italian employers employed by them.

Well, in such cases the employer company will have to be very careful, as such agreements may have no value as they are voidable: in fact, Art. 2113 of the Italian Civil Code states that waivers and settlements, which have as their object the rights of the employee arising from mandatory provisions of the law and collective contracts are invalid. The an employee has six months to challenge the agreement in order to have it cancelled.

So an employer company will not be able to enter into a simple agreement with one of its employees that provides for, to give an example, the handout of a sum of money in exchange for waiving the employee’s appeal against dismissal.

Art. 2213, however, provides for a special way to conclude agreements between employee and employer: these agreements, in fact, can be concluded in the so-called “protected venues,” i.e., in the presence of a third party who is able to protect the worker, who is always considered, by Italian law, to be the weaker party within a negotiation of this type.

The so-called protected venues are conciliation:
– the territorial labor inspectorate (so called “I.T.L.”);
– an union representative’s office;
– an assisted negotiation procedure.

In the first two cases, there are appointed committees that verify that the worker is properly informed and that the worker makes a good agreement; in the last case, conciliation takes place in the presence of two lawyers representing the parties.

SGHS Law Firm assists foreign companies on a daily basis in negotiating such agreements and works with a union in order to formalize such agreements in a proper way. Do you need advice and assistance in this regard? Contact us!