As remote and hybrid work models gained popularity post-pandemic, countries began passing laws and regulations to clarify remote workers’ rights and employers’ obligations.
The Italian government was actually an early pioneer, enacting remote work laws as early as 2002, and more recently passing the Smart Working Law in 2017 (Legislative Decree No. 81/2017).
The Smart Working Law aims to modernize Italy’s approach to remote work, making it both worker-friendly (emphasizing balance and flexibility) and business-friendly (fueling productivity and innovation).
Companies hiring remote workers in Italy must understand and adhere to the country’s legal frameworks for remote work, or risk fines, legal disputes, and — in severe cases — potential criminal liability.
Key takeaways:
- Italy’s 2017 Smart Working Law differs from telework, creating a more flexible, outcome-driven remote work framework.
- Compliance requires written agreements and timely filings with the Ministry of Labour (COVID flexibilities are over).
- Remote workers retain the same rights, protections, and assurances as on-site staff.
The Early Days of Teleworking in Italy
Italy first addressed telework in the early 2000s, following the European Framework Agreement on Telework (2002), by adopting the 2004 Interconfederal Agreement — a signed agreement between Italian employer associations and unions that defined telework as work regularly performed outside company premises using information technology.
The Agreement established remote work rights, including:
- Equal treatment with on-site staff
- Privacy protection
- Employer-provided equipment
- Voluntary participation by both the employer and employee
At the time, telework was primarily limited to a fixed work location (typically the employee’s home office) and set work hours.
The 2017 Smart Working Law
The 2017 Smart Working Law (Law No. 81/2017 or Lavoro Agile) removed the rigidity of the Interconfederal Agreement. In fact, Italy took the lead on this issue, passing its remote work law before many other EU countries.
The goal of the Smart Working Law is to improve flexibility, productivity, and work-life balance by focusing on outcomes and autonomy, rather than strict requirements.
Italy’s Smart Working Law significantly differs from traditional telework in key ways:
No Required Fixed Workplace
Smart Working frees remote workers from the expectation that they can only perform their daily workload from a fixed location, like their home office.
Remote workers gain autonomy to work where they work best, although employers may still require a mix of on-site and remote work.
Flexible Scheduling
Scheduling flexibility enables workers to better balance professional and personal commitments — maintaining business productivity while also protecting employee health, safety, and rest.
As a result, remote workers aren’t bound by a strict working schedule like traditional office staff. They have the flexibility to organize their own working hours and decide when to complete tasks.
At the same time, Italian employees are still governed by national employment laws, which include a maximum 48-hour work week (overtime included) and minimum rest periods of 11 consecutive hours.
A Written Agreement
Italy’s Smart Working Law requires an individual written agreement between the employer and employee to outline the key terms of the arrangement. At a minimum, it should specify:
- Duration: Defining whether the arrangement is fixed-term or indefinite
- Place of work: Expectations around where the employee will generally perform tasks (e.g., partly in the office, partly elsewhere, etc.)
- Work tools: Devices, software, or other equipment provided or authorized for use
- Right to disconnect: Protects the employee’s rest and personal time outside agreed-upon working hours
- Reversibility: Conditions under which either party can end or modify the smart working arrangement
This written agreement protects both parties from legal risk by setting clear expectations.
Safety and Insurance
Employers remain responsible for meeting remote workers' health and safety obligations.
The employer must provide workers with a written notice prepared by INAIL (the Italian National Institute for Insurance Against Accidents at Work).
This document explains the rules and best practices for preventing occupational risks in a remote setting. Failure to issue the INAIL notice risks liabilities and insurance coverage challenges.
Workers are also fully covered by Italy’s mandatory workplace accident insurance, even if accidents occur at home.
Equal Treatment
Remote workers are guaranteed the same pay, rights, and training as their peers, regardless of workplace location.
Ultimately, teleworkers have the same collective rights as in-person workers.
Employer Reporting and Equipment Obligations Under Smart Work
Employers must notify the Ministry of Labour via an online portal within five days of creating a new smart working agreement, as well as any changes or terminations to an existing one.
Failure to do so can result in an administrative fine of EUR 100 to EUR 500 per employee.
The Smart Working Law does not explicitly require employers to provide equipment or reimburse expenses, such as internet or electricity.
However, many collective bargaining agreements (CBAs) and company policies require companies to provide employees with laptops and any necessary software to perform their duties.
Additional reimbursements, like utility costs, can be individually negotiated or defined in CBAs.
The Impact of COVID-19 on Smart Working
During the pandemic, Italy helped companies move to smart working quickly by temporarily relaxing the administrative process — allowing millions of employees to shift to home-based work almost overnight.
Rather than drafting individual agreements for each employee, employers could set up remote work arrangements by submitting a single bulk online notification with a list of employee names to the Ministry of Labour.
This streamlined process expired on April 1, 2024, and employers are once again required to create individual smart working agreements and file notice with the Ministry within five days.
The Right to Disconnect
Italian law does not universally guarantee the right to disconnect, although various pending bills could change that. Instead, you’ll frequently find right to disconnect terms and expectations in many smart working agreements and CBAs.
These provisions typically ensure workers don’t need to respond to work communications outside their agreed-upon working hours. Employers must also limit messages sent to employees outside of business hours through corporate communication channels, such as email, Teams, or Slack.
The goal is to ensure a healthy work–life balance and protect employees from feeling like they must always be “on call” just because technology makes them reachable 24/7.
Who Is (and Isn’t) Covered by the Smart Working Law?
The Smart Working Law primarily applies to employees in the private sector under standard employment contracts. Public sector workers may also be eligible, if stipulated by specific decrees or CBAs.
The law does not cover independent contractors, since self-employment already provides them with control over when and where they work. Similarly, roles requiring an in-person location, like healthcare positions, are generally excluded.
The law prioritizes granting smart work arrangements for employees in vulnerable situations, for example:
- Parents with children under 12
- Employees with a serious disability
- Caregivers for a family member with a disability
Hire and Manage Italian Remote Workers With RemoFirst
RemoFirst helps companies compliantly hire employees in Italy and more than 185+ other countries without setting up a legal entity.
As an Employer of Record (EOR), we handle compliance with local employment regulations — like the Smart Working Law — as well as international payments, employee benefits, private health insurance, Social Security contributions, paid time off, and more.
Schedule a demo to learn how RemoFirst makes it simple to hire in Italy and anywhere else you plan to grow.
