The Temporary Employment Agreement… Is it a Good Choice?

• Introduction
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• Limits under Italian Law
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• Recent Legislative Changes
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• Practical Effects

Introduction

A temporary employment agreement is a contract whereby the employer and the employee specify the duration of the employment relationship in writing. At the end of this period the employment relationship is automatically terminated.

Italian law has always considered the temporary employment agreement as an exception to the rule on employment contracts, to be allowed only in cases provided for by specific laws (ie, Law 230/60 and Decree-Law 368/2001) and by applicable national collective agreements. Such agreements frequently trigger disputes between employers and temporary employees seeking to be reclassified as permanent employees.