Key measures introduced by the new Italian Labour Decree

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May 18 2026

The Italian Government has recently enacted Law Decree no. 62/2026 (the Labour Decree), targeting three key areas: (i) promoting stable employment for women, young people, and employees in the Southern Italy; (ii) strengthening wage protection; and (iii) tackling labour exploitation in the context of digital platforms. In this latter respect, the Labour Decree fits within a broader European trend aimed at regulating algorithmic governance in the workplace (fuelled also by EU Directive no. 2024/2831 on the improvement of digital platform workers’ working conditions).

Overview of the key measures

Incentives to employment: the Labour Decree introduces social security contribution relief for up to 24 months for companies that within 2026:
- hire women unemployed for at least 24 months on a permanent basis;
- hire under 35 years old employees unemployed for at least 24 months on a permanent basis;
- convert under 35 years old fixed-term employees (whose contact does not exceed 12 months) into permanent employees;
- have up to 10 employees and permanently hire in the South of Italy employees having at least 35 years old.
Fair salary: while the political debate was focusing on the introduction of a general statutory minimum salary by law, the Government chose to: (i) introduce a concept of so-called “fair salary”; and (ii) entrust the most representative social parties with the duty of determining what this amounts to. In other words, the “fair salary” is not a general statutory minimum salary provided by law, but rather the remuneration defined by the national collective bargaining agreements signed by the most representative employers’ associations and trade unions at the national level (having regard to the relevant company’s sector).
Tackling digital labour exploitation: the Labour Decree has introduced various measures to favour this goal:
- Substance over form: it has been stressed that employment relationships intermediated by platforms must be classified based on how the work is actually performed, regardless of the formal classification adopted by the parties. In this respect, a presumption of subordination applies whenever indicators of control or direction exist — even if exercised through algorithms.
- Enhanced information obligations:
  (a) Towards social security and labour inspection authorities: a decree of the Ministry of Labour will define the risk indicators and the data that platforms must communicate to these authorities;
  (b) Towards workers: without prejudice to the information obligations already in place, digital platforms must provide workers with clear and understandable information on the automated or algorithmic systems used for: (i) task allocation, (ii) pay quantification, (iii) performance evaluation, and (iv) suspension or termination of access to the platform. Workers also have the right to obtain a clear explanation of any automated decision, as well as a human review.
- Anti account renting measures for riders: to limit the account renting practice (which fuels potential labour exploitation), access to platforms will only be allowed through secure identification systems (e.g. SPID, CIE, or strong multi-factor authentication). The transfer or sharing of login credentials is expressly prohibited and subject to administrative sanctions in case of violations.

Conclusions

The Labour Decree combines traditional instruments — such as contribution relief — with innovative measures designed to address the new challenges posed by the economy. It will now follow the relevant conversion process, during which the text could be amended. Any relevant amendments shall be carefully analysed in due course.

Authors

Milan

May 18 2026

Overview of the key measures

Incentives to employment: the Labour Decree introduces social security contribution relief for up to 24 months for companies that within 2026:
- hire women unemployed for at least 24 months on a permanent basis;
- hire under 35 years old employees unemployed for at least 24 months on a permanent basis;
- convert under 35 years old fixed-term employees (whose contact does not exceed 12 months) into permanent employees;
- have up to 10 employees and permanently hire in the South of Italy employees having at least 35 years old.
Fair salary: while the political debate was focusing on the introduction of a general statutory minimum salary by law, the Government chose to: (i) introduce a concept of so-called “fair salary”; and (ii) entrust the most representative social parties with the duty of determining what this amounts to. In other words, the “fair salary” is not a general statutory minimum salary provided by law, but rather the remuneration defined by the national collective bargaining agreements signed by the most representative employers’ associations and trade unions at the national level (having regard to the relevant company’s sector).
Tackling digital labour exploitation: the Labour Decree has introduced various measures to favour this goal:
- Substance over form: it has been stressed that employment relationships intermediated by platforms must be classified based on how the work is actually performed, regardless of the formal classification adopted by the parties. In this respect, a presumption of subordination applies whenever indicators of control or direction exist — even if exercised through algorithms.
- Enhanced information obligations:
  (a) Towards social security and labour inspection authorities: a decree of the Ministry of Labour will define the risk indicators and the data that platforms must communicate to these authorities;
  (b) Towards workers: without prejudice to the information obligations already in place, digital platforms must provide workers with clear and understandable information on the automated or algorithmic systems used for: (i) task allocation, (ii) pay quantification, (iii) performance evaluation, and (iv) suspension or termination of access to the platform. Workers also have the right to obtain a clear explanation of any automated decision, as well as a human review.
- Anti account renting measures for riders: to limit the account renting practice (which fuels potential labour exploitation), access to platforms will only be allowed through secure identification systems (e.g. SPID, CIE, or strong multi-factor authentication). The transfer or sharing of login credentials is expressly prohibited and subject to administrative sanctions in case of violations.