20 Best Employer of Record in Italy: Reviewed in 2025
Best Italian Employer of Record Service Shortlist
Here’s my pick of the 10 best Italian EOR services out of the 20 options I reviewed:
Get free help from our HR software advisors to find your match.
Hiring employees in Italy can feel like navigating a maze of unfamiliar regulations, registrations, and red tape—especially if you don’t have local expertise or a legal entity in the country. Between registering with Italy’s Chamber of Commerce, the National Institute of Social Security (INPS), and staying compliant with the Ministry of Labor, it’s easy to feel overwhelmed or delay your hiring plans entirely.
That’s where an Employer of Record (EOR) can add significant value. EOR services help you legally hire, onboard, and pay Italian employees without setting up a local entity. They manage employment contracts, payroll, benefits, and compliance so you can focus on scaling your team, not untangling bureaucracy.
Sounds like a worthwhile partnership, right? The most challenging part it finding the best EOR service that truly fits your needs.
I’ve spent years analyzing global employment solutions to help companies hire internationally with confidence. In this guide, I’ve pulled together my top picks for the best EOR services in Italy, so you can choose a trusted partner and get started faster.
Market Details for Hiring in Italy
- Capital City: Rome
- Currency: Euro (€, EUR)
- Payroll Frequency: Monthly
- Official Language: Italian
- Approx. Population: 60.3 Million
- Public Holidays: 10 holidays over 12 days
Why Hire Employees in Italy?
Italy's strong education system produces a workforce that is well-versed in specialized fields such as engineering, automotive, manufacturing, design, luxury goods, and fashion, making it an attractive talent marketplace for expertise in these sectors, including niche roles.
In addition, Italy's strategic location within Europe, combined with its robust infrastructure and high standards of living, makes it an appealing destination for international companies seeking the best global talent.
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Best Employer of Record in Italy: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in Italy to help you find the best EOR service for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 | Best for offering local health benefits to Italian EOR employees | Free demo available | Pricing upon request | Website | |
| 2 | Best for budget-conscious remote team expansion | Free demo available | From $25 - $199/user/month | Website | |
| 3 | Best for Italian labor law compliance | Not available | From $29/contractor/month to $499/EOR employee/month | Website | |
| 4 | Best Italian EOR partner for enterprise organizations | Free demo available | From $595/employee/month or $49/contractor/month | Website | |
| 5 | Best for navigating complex regulatory landscapes | Free demo available | Pricing upon request | Website | |
| 6 | Best for an advanced EOR management platform | Free demo available | Pricing upon request | Website | |
| 7 | Best for a flexible EOR contract with no termination fee | Free demo available | From $49/contractor/month | Website | |
| 8 | Best EOR service for flexible payment methods | Free demo available | Pricing upon request | Website | |
| 9 | Best EOR provider for managing IT assets | Free demo available | From $8/user/month (billed annually) | Website | |
| 10 | Best for competitive benefits packages | Free trial available | From $29/user/month | Website |
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Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Guru
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Absorb LMS
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6
Reviews of the Best Employer of Record Services in Italy
To help you find the best EOR service for hiring Italian employees, I’ve described my top 10 selections in detail, including the specific services each provider offers and how HR teams can use them effectively. Additionally, I’ve listed 10 more EOR service providers for Italy below if you’d like more options to consider.
Deel is a well-established employer of record platform that helps companies rapidly employ workers in 150+ countries, including Italy.
Deel owns a local entity in Italy staffed with legal experts to keep track of regulatory changes and ensure all legal obligations are met on your behalf. To hire an Italian employee with Deel, the average onboarding time frame is 3 days.
Why I picked Deel: Deel excels as an EOR service provider in Italy by offering streamlined contract management, ensuring compliance with Italian employment laws. Deel also helps organizations offer localized employee benefits for Italian staff, including healthcare, unemployment insurance, workers' compensation accident insurance, and life insurance.
In addition, Deel has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. These services, all combined, facilitate efficient and compliant hiring processes within the Italian talent market.
Deel Key Services:
Deel offers end-to-end management for your Italian employees covering everything from hiring and onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their remote teams effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel for visa and immigration support if you want to relocate existing employees to Italy, with Deel managing the entire visa process for your organization in-house.
Deel offers 24/7 customer support and live chat and is known for its fast support.
Pros and cons
Pros:
- Comprehensive employee benefits
- Local compliance expertise
- Fast onboarding process
Cons:
- Potential complexity for first-time users
- Limited customization options
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build global teams with ease. They offer EOR services in 180+ countries, eliminating the need to set up multiple legal entities abroad.
Why I picked Remofirst: If you're looking to expand your remote team into Italy but are on a budget, Remofirst is a great option. With its focus on affordability, you can bring on new team members in Italy without spending heavily on legal setups or complex processes. Remofirst takes care of local labor laws, payroll, tax filings, and compliance with Italian employment regulations, so you don’t have to.
They'll automatically calculate your team’s hours, time off, holidays, bonuses, and commissions. They also ensure that your team members in Italy are treated fairly by offering localized benefits that meet Italian labor standards. For example, they manage statutory requirements like healthcare contributions and paid leave.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Italian regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, onboarding and offboarding, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you allocate equipment to your global employees. Pricing for the EOR plan starts at $199/person/month.
Pros and cons
Pros:
- Robust employee support
- User-friendly platform
- Comprehensive compliance management
Cons:
- Service availability may vary by region
- Dependence on third-party providers for some services
Omnipresent is a global employment solutions provider that helps businesses hire, onboard, and manage remote teams across over 160 countries, including Italy. They take on the administrative and legal responsibilities of hiring internationally, offering services like payroll, benefits, and compliance management.
Why I picked Omnipresent: Omnipresent's EOR services in Italy help you stay compliant with local labor laws while managing your Italian employees. They handle employment contracts in line with Italian labor regulations, ensuring that your team members are employed legally and given the correct rights and protections.
Omnipresent also manages social security contributions, income tax withholdings, and other statutory benefits that are mandatory for employees in Italy. With their expertise in Italian employment law, your team can focus on growing the business while Omnipresent handles the tricky regulatory aspects.
Omnipresent Key Services:
Beyond EOR services, Omnipresent also offers other key features that make managing a global workforce simpler. They provide payroll services that calculate and distribute payments in local currencies, ensuring that employees are paid correctly and on time. They also offer employee benefits management, including healthcare, pensions, and insurance options that meet local standards.
Additionally, Omnipresent offers global mobility support, which assists with visas, work permits, and relocation services for employees. They also offer intellectual property protection, helping your company secure important legal rights when managing remote teams.
Pros and cons
Pros:
- Strong local expertise in employment regulations
- Handles tax compliance across multiple countries
- Easy to manage payroll for global teams in one platform
Cons:
- Delays in customer support response times
- Lacks integration options
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, Atlas HXM believes businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Italian-specific compliance monitoring, employee engagement and productivity monitoring, benefits administration (health, dental, and vision), and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts who deliver flexible services to companies wanting to expand across borders, including into Europe. Their services can help you onboard talent, manage compliance, and pay your global workforce without requiring a local entity or multiple third-party providers.
Pros and cons
Pros:
- User-friendly platform with localized support
- Comprehensive and customized onboarding
- Extensive local compliance expertise
Cons:
- Initial setup may require significant time and resources
- Limited customization options for specific HR policies
Velocity Global is a well-known employer of record (EOR) and professional employer organization (PEO) provider that simplifies global hiring thanks to its network of on-the-ground experts in 185+ countries, including Italy.
Why I picked Velocity Global: I included Velocity Global in this list because of their well-known reputation for global EOR services and their expertise in navigating complex regulatory environments. They stand out with their ability to handle intricate regulatory landscapes, ensuring companies can expand efficiently without legal hurdles.
Velocity Global Key Services:
Velocity Global offers comprehensive support for their EOR clients, including everything from onboarding to ongoing HR management, backed by a deep understanding of local employment laws. Key services include payroll, compliance, benefits management, employee training, and risk management for your Italian employee operations.
In addition to its EOR services, Velocity Global can also help you simplify your plans for global expansion or offer additional global immigration services in case you want to move international employees to another location.
Pros and cons
Pros:
- Strong understanding of the Italian regulatory environment
- Localized payroll management
- Efficient and thorough onboarding process
Cons:
- Possible communication delays due to time zone differences
- Limited customization options
Mercans is a global EOR provider that offers services in Italy, including global payroll and other HR solutions. Their services emphasize compliance, local expertise, and seamless integration for businesses expanding into the Italian market.
Why I picked Mercans: EOR services via Mercans include compliance management and extensive local knowledge, a commitment to personalized service, and access to an advanced technology platform to streamline payroll and HR processes. They stand out for their ability to handle complex employment scenarios, making them a top choice for companies seeking reliable EOR services in Italy.
Mercans Key Services:
Mercans provides tailored HR solutions to support the diverse needs of each client. This customization ensures that businesses receive support aligned with their unique requirements, enhancing overall employee satisfaction.
Mercans also runs its EOR services from an advanced technology platform that includes real-time reporting and analytics features, giving client companies valuable insights into their global HR operations. This level of data also helps client companies make informed decisions and improve strategic planning.
Pros and cons
Pros:
- Extensive local expertise
- Personalized service
- Advanced technology platform
Cons:
- Integration challenges with some existing systems
- Limited physical presence in some regions
Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.
Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.
Their Italian EOR services are administered by their local experts who are well-versed in Italian employment laws, including statutory maternity leave and parental leave. Their onboarding process for new employees in Italy is also very quick, with a minimum turnaround time of just 12 hours.
Horizons Key Services:
In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in Italy, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on how to access new and emerging markets.
Horizons also provides cultural training and support to help employees integrate seamlessly into the Italian work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.
Pros and cons
Pros:
- Cultural integration support
- Strong focus on compliance
- Deep knowledge of Italian labor laws
Cons:
- Service offerings may vary by region
- Dependence on local partners for some services
G-P is an EOR service provider that operates in numerous countries, including Italy. As an EOR, they handle all aspects of employment, from hiring and onboarding to compliance and payroll, ensuring that companies can expand their workforce in Italy without the need for a local entity. They offer specialized services tailored to the unique needs of the Italian market, emphasizing legal compliance and streamlined operations.
Why I picked G-P: G-P’s EOR platform is designed to handle complex regulatory environments, making it easy for businesses to hire and manage employees in Italy. New hires can be onboarded in days, with locally-compliant contracts according to Italian laws. Using G-P, you can also flexibly pay your EOR employees in over 180+ currencies (including cryptocurrencies) using Venmo or bank transfers.
G-P Key Services:
G-P offers automated onboarding processes, real-time expense reporting, and a dedicated support team, all of which contribute to their reputation as one of the best EOR services in Italy. Their EOR experts can also assist with global expansion plans and executing global transactions as well.
Another key offering is their AI assistant, Gia, which provides instant guidance on employment regulations and best practices.
Pros and cons
Pros:
- Dedicated customer support team
- Real-time expense reporting
- Automated onboarding process
Cons:
- Possible delays in communication due to time zone differences
- Limited customization options
Rippling is an all-in-one global HR, payroll, and IT platform that offers additional EOR and PEO services. You can use their combined software and services to run payroll easily, with each EOR employee paid in their local currency, including Euros.
Why I picked Rippling: I included Rippling because of its unique dual functionality as both an HR platform and an IT management system. Using Rippling, you can provide a streamlined employee experience for all your new employees, easily granting them access to all the IT assets they’ll need as part of their employee onboarding process.
Rippling Key Services:
Rippling’s unified platform offers enterprise-grade security, scalability, and operational efficiency, helping companies manage payroll and benefits, time-tracking, and reporting for your entire global workforce from a single user interface.
Their combined services and software include compliance monitoring, automated tax filings, accurate time tracking, expense reporting, policy management, and HR reporting.
Pros and cons
Pros:
- Integrated benefits administration
- Localized payroll management
- Comprehensive compliance automation
Cons:
- Learning curve for new users
- Limited customization options
Remote’s global HR solution offers EOR services that simplify payroll, benefits, taxes, and compliance for international workers. You can use their services to hire full-time employees or contractors and gain local market insights.
Once you’re ready to hire an employee in Italy, Remote can complete their onboarding process within 3 days.
Why I picked Remote: Remote helps companies compete for talent effectively in the European market by lending access to competitive benefits packages. They can help you offer health insurance, dental insurance, vision insurance, life and disability coverage, and mental health support services for your Italian employees. Remote also doesn’t add any markup to their benefits premiums or administration costs, making them a cost-effective choice.
Remote Key Services:
Services include global payroll processing, intellectual property and invention rights protection, and benefits packages that are tailored for the Italian market. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal.
Pros and cons
Pros:
- Strong local expertise
- User-friendly platform
- Comprehensive compliance support
Cons:
- High cost per employee
- Limited customization options
Other Italian Employer of Record Services
Here are some other EOR service providers in Italy that didn’t make it into my top 10 shortlist, but are still worth considering:
- Papaya Global
For an AI-based payroll engine
- Skuad
For hiring and paying talent in Italy
- Oyster HR
For EOR-related educational resources for clients
- FoxHire
For hiring Italian healthcare and higher education workers
- EuroDev
EOR service for European client companies
- Native Teams
Italian EOR for offering competitive employee perks
- Safeguard Global
EOR service for NGOs and non-profit organizations
- Jobtech Services
For background checks on Italian EOR employees
- Global PEO Services
For offering a combined EOR and PEO model
- Bradford Jacobs
For managing Italian payroll taxes
Hiring in Italy: Important Details
Here are some key details to note if this is your first time hiring staff located in Italy. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in Italy.
In Italy:
- Employment laws in Italy are complex and are determined by multiple legislative bodies and acts, including:
- Ministry of Labor and Social Policies (Ministero del Lavoro e delle Politiche Sociali)
- The Italian Constitution
- The Civil Code of Employment (Section III, Articles 2094-2134)
- Italian Collective Bargaining Agreements
- Employment and labor legislations established by the Italian parliament or other, regional, governments
- You can hire employees or contractors. Your Italian EOR provider can help you determine the best hiring option depending on your needs while helping you steer clear of employee misclassification issues.
- Employment contracts are governed by different Legislative Degrees depending on the type of contract, including part-time, fixed-term, on-call, temporary, or apprenticeship.
- Italy has both mandatory payroll deductions and social security contributions that must be collected. These include social security contributions (INPS), income tax (IRPEF), and regional taxes on productive activities (IRAP).
- Italian is the official language in Italy.
- The standard working week in Italian is 40 hours, up to a weekly maximum of 48 hours. The overtime rules vary depending on the job. However, Italian workers cannot work more than 250 overtime hours per year.
- Italy requires 13 salary payments per year. This equates to 12 months' salary plus one 13th-month payment called tredicesima which is paid during the holiday period in December. This is another important detail your Italian EOR service can help you manage.
- Paid vacation in Italy starts at 22 days per year. Annual leave entitlements are calculated by the number of months an employee has worked per year.
- There are 10 public holidays in Italy that equate to 12 paid days off. In Italy, Christmas and Easter are both celebrated over two days. Understanding and complying with employment norms and legal requirements surrounding Italian public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- Italy offers maternity leave up to 5 months. Expecting mothers can begin their maternity leave up to 3 months before birth. Paternity leave of up to 10 days is also available, plus up to 10 months of parental leave, which can be shared by both parents.
- Paid sick leave in Italy is 3 days, where employees receive 100% of their wage. For extended illnesses, the employee can receive partial payment from their employer plus top-up payments from the Italian social security system, depending on the length of the leave.
- The probationary period in Italy varies from 2 to 6 months, depending on the job.
- Termination of employment in Italy can be initiated immediately for “just cause” or terminated with notice for economic or other factors. The notice period is determined by the relevant collective bargaining agreement.
- Severance pay is equal to the employee’s annual salary, divided by 13.5.
Selection Criteria for Employer of Record Italy
Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage cross-border payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
What is an Employer of Record in Italy?
An Employer of Record (EOR) in Italy is a third-party service that legally employs your Italian hires on your behalf — handling payroll, taxes, benefits, and local compliance — while you manage their day-to-day work. It’s a fast, low-risk way to hire in Italy without setting up a local entity or mastering complex labor laws.
Rather than asking your HR professionals to become experts in Italian labor laws and regulations, you can outsource these requirements to an EOR in Italy and gain peace of mind that your future operations will be compliant.
EOR vs Legal Entity
If you're planning to hire employees in Italy, you have two main options: partner with an EOR, or establish your own legal entity in the country. While both can help you hire Italian staff, each path comes with very different timelines, responsibilities, and overhead.
Here’s a quick comparison to help you decide which option makes the most sense for your business:
| Requirement | Employer of Record (EOR) | Legal Entity Setup |
|---|---|---|
| Legal presence in Italy | Not required | Required |
| Entity registration | Handled by EOR | Must register with Chamber of Commerce, INPS, etc. |
| Payroll & tax compliance | Managed by EOR | Handled internally or through local partners |
| Time to hire | Days | Weeks to months |
| Initial setup cost | Low | High (legal, admin, tax advisory fees) |
| Ongoing responsibilities | Minimal → EOR handles compliance | High → ongoing tax filings, reporting, etc. |
| Control over employment terms | Standardized via EOR | Full control |
| Scalability & speed | Easy to scale | Slower, more complex |
An EOR is ideal if you need to hire quickly, test the market, or avoid the red tape of setting up an Italian entity. On the other hand, forming a local entity might make more sense for companies planning long-term operations or hiring at scale in Italy.
How to Choose an Employer of Record in Italy
Choosing the right EOR in Italy starts with knowing what you need. Before comparing providers, get clear on your goals, pain points, and what success looks like for your team.
Here are five key questions to guide your decision:
- What problem are you solving?
Are you trying to navigate complex labor laws, streamline payroll in Euros, offer local benefits, or hire talent in specific Italian regions? To avoid wasting time and effort, identify the core challenges you want the EOR to handle upfront. - Who benefits from the service?
Think about who will manage the EOR relationship internally and how the service will make their jobs easier. - What's your budget?
Estimate how many employees you plan to hire in the Italy. Since most EORs charge a monthly fee per employee, this will help you estimate your costs. - What outcomes matter most?
Focus on the business results you’re aiming for—like faster hiring, legal peace of mind, or regional coverage—so you have a clear picture of what a successful partnership will look like. - How will it fit into your workflow? Make sure their systems integrate smoothly with your existing HR tools to avoid data headaches.
Just because an EOR is well-known doesn’t mean it’s the right fit — make your decision based on what truly serves your team and goals.
Trends in Employer of Record Services for 2025
With global hiring on the rise, companies need faster, more compliant ways to onboard talent across borders. In response, today’s EOR providers are leaning into flexible, tech-driven platforms that streamline payments, benefits, compliance, and onboarding—all in one place.
Here are the top trends shaping EOR services and the HR tech behind them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion.
For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Deel, Atlas HXM, and Remofirst.
Key Employer of Record Services
By leveraging an EOR service, companies can manage international payments, ensure compliance with local labor laws, provide competitive benefits, and optimize their new hire onboarding process. Here are the most important services to look for in an EOR service provider:
- Global Payroll Management: Arguably one of their most important tasks, an EOR service will ensure your employees are paid accurately and on time in their local currency. This service is essential for maintaining employee satisfaction and financial stability in diverse geographic locations.
- Tax Compliance and Withholding: An EOR service will also manage employee income tax withholdings and employer tax obligations per local laws, preventing legal issues and ensuring smooth operations across different tax jurisdictions.
- Local Labor Law Compliance: EOR service providers offer country-specific knowledge of employment laws and regulations, such as managing CCNL (National Collective Labor Agreement) and severance pay (Trattamento di Fine Rapporto, or TFR) in Italy. This knowledge protects businesses from legal disputes and fines, ensuring a respectful and lawful work environment for all employees. Knowledge of these laws also applies to monitoring employee work hours, including timesheets and time-off requests.
- International Talent Acquisition & Background Checks: An EOR service will work with their client company to source additional talent from the global market as needed. As part of this process, many EOR services include background checks for potential new hires to confirm their credentials and ensure they're suitable for their role. Once approved, an EOR will also manage your country-specific employment contracts as well.
- Visa and Work Permit Sponsorship: Many EOR providers offer assistance with obtaining necessary Italian visas and work permits for expatriate employees. This service is critical for facilitating the legal employment of foreign nationals and ensuring a seamless relocation process.
- Onboarding and Offboarding: An EOR will also manage the processes of integrating new hires into their client's company or managing their departure. This ensures a smooth transition for both employees and the organization and gives peace of mind that employee terminations are handled as per the labor laws of each jurisdiction.
- Benefits Administration: By leveraging economies of scale, EOR service providers can access competitive, region-specific health insurance benefits packages to cover your international employees. Tailored employee benefits are crucial for attracting and retaining top talent, enhancing job satisfaction, and meeting legal requirements for employee welfare.
- HR Support and Consultation: EOR specialists are a valuable resource as they can provide ongoing human resources support and expertise on international employment practices. This support ensures that businesses can navigate complex HR issues, deal with grievances effectively, and maintain positive employee relations without affecting their employer brand.
- Risk Management and Insurance: Since EOR providers assume legal responsibility for your foreign staff, this also includes managing employment-related risks, handling workers' compensation matters, and maintaining certificates of insurance, including both professional indemnity and public liability. This coverage is vital for protecting businesses and employees against unforeseen circumstances.
- Multi-Language Support: EOR providers offer services in multiple languages to help organizations operate efficiently in a global marketplace and serve the needs of a diverse workforce. This can include translation services for your corporate policy documents, as well as localized assistance in your international employees' native language, to prevent possible miscommunications.
As you can see, EOR service providers offer a full set of comprehensive services to help businesses expand their operations globally without the burden of navigating international employment laws and practices on their own. By securing an EOR partner to cover these critical services, you'll gain peace of mind, and more time to concentrate on your core business objectives.
Benefits of an Employer of Record Service
Expanding into new markets doesn’t have to mean navigating a maze of foreign labor laws and compliance risks. Partnering with an EOR gives you a fast, low-risk way to hire internationally, without setting up a legal entity or managing complex employment regulations on your own.
Here’s what you gain with the right EOR partner:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Understanding the benefits of an EOR service is crucial for strategic planning and operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in Italy cost between $400 to $2,000 per employee, per month.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs about EOR Services in Italy
If you’ve got specific questions about the requirements to hire Italian employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) legally employs workers on your behalf in countries where you don’t have a local entity. They handle onboarding, payroll, tax deductions, and compliance, so you can hire international talent without taking on the legal risks or complexities of setting up a foreign office.
It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them.
What are the minimum wage requirements in Italy?
The average minimum wage in Italy is €7 to €9 per hour. However, Italy does not have a fixed statutory minimum wage set at the national level. Instead, minimum wages are determined through collective bargaining agreements (CBAs) specific to each industry and worker classification. These agreements are negotiated between trade unions and employer associations, and they establish the minimum pay rates for different job roles within specific sectors.
Because of this decentralized system, the minimum wage can vary significantly depending on the industry, region, and the specific terms of the relevant collective bargaining agreements. For example, it’s common for employees to earn slightly more in Northern Italy than they would in Southern Italy.
Do EOR providers offer other types of global HR services?
Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as global payroll outsourcing services.
PEO services are a way to outsource human resources to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
What are some of the consequences of non-compliance?
Hiring internationally without meeting local legal requirements can lead to serious consequences, including fines, lawsuits, revoked business licenses, and long-term damage to your company’s reputation.
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
Are there any risks to using an Employer of Record service?
While EOR services offer major advantages, they’re not entirely risk-free. Here are some common areas to watch out for:
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Hidden fees for tasks like onboarding, offboarding, or HR support
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Mandatory benefit costs added on top of salaries and service fees
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Currency fluctuations that impact payroll costs and transactions
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Data security concerns if the provider lacks strong protection protocols or certifications (e.g., ISO 27001)
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Loss of control over employment processes and HR decisions
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Reputation risks if the EOR mishandles employee relations or compliance
Choosing the right EOR partner can help you avoid most of these pitfalls, so do your due diligence before signing on.
Gain Access to the Best Talent with an EOR in Italy
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Italian employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Italy, or a small business or startup trying to break into the Italian talent marketplace without launching your own entity.
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