How long is annual leave in Italy?

Employees in Italy are entitled to at least 4 weeks of paid annual leave each year. However, a collective labor agreement (NCLA) may offer more generous terms.

Under the NCLA, the specifics for annual leave entitlement are as follows:

• Employees receive 26 days of annual leave for the first 2 years of employment.
• After 2 years of service, employees are entitled to 30.5 days in total.
• After 4 years of service, employees are entitled to 35 days.
• Executives ("Dirigenti") receive 29 days for statutory holidays in total.

Typically, employees should be allowed to take 2 consecutive weeks of annual leave within the year it was earned. Additionally, employers cannot pay employees in lieu of the minimum 4 weeks of leave; however, leave beyond this minimum is not subject to the same restriction.

What is the carry-over policy for annual leave in Italy?

In Italy, supported employees are allowed to carry over unused annual leave days. The leave must be taken within 18 months following the end of the year in which it was accrued. Consequently, any paid time off (PTO) accrued in 2023 above the legal minimum of 4 weeks can be carried over until June 2025. If these holidays are not used within the designated period, they are forfeited and subsequently paid out upon termination of employment.

The carry-over policy and annual leave entitlements vary by employee category:

• Full-time "Quadro" employees are entitled to 26 days of annual leave within the first 2 years of service. After 2 years, this entitlement increases to 30.5 days, and after 4 years, it further increases to 35 days.
• Executives ("Dirigenti") have a statutory holiday entitlement of 29 days in total.

How is paid time off (PTO) calculated in Italy?

Paid time off (PTO) in Italy is calculated as follows:

• For supported employees leaving during the year, a pro-rata calculation is applied.
• PTO is paid based on the daily rate.
• The calculation method involves using a standard payday formula, where the monthly salary is divided by 26 to determine the daily rate.

What is the process to request annual leave in Italy?

To request annual leave in Italy, supported employees must follow this process using our Global Work Platform™:

• Access the platform and navigate to the "Time" tab.
• For "Ferie and Ex Festività," select "Annual Leave."
• For "ROL" (Residual Leave), choose "Time Off" if the employee has accrued it after 2 years of seniority.

This procedure ensures the leave request is properly recorded and processed.

Is time off usage required in set increments in Italy?

Yes, if the worker requests it, 2 weeks of time off must be taken without any interruption.

Is unlimited PTO an option in Italy, and how can it be accommodated?

In Italy, offering unlimited Paid Time Off (PTO) is within the discretion of the employer. However, it is not recommended to include such a policy directly within the employment agreement.

Is it necessary to track leave accrual on employee payslips in Italy?

Yes, it is necessary to track leave accrual on employee payslips in Italy.