INPS

The occasional work contract is intended for different categories of users, each with its own limitations and peculiar characteristics: professionals, self-employed workers, entrepreneurs, associations, foundations and other private bodies, agricultural companies, Public administrations, local authorities, hotel companies and accommodation facilities in the tourism sector, non-profit organisations and associations that can acquire work services through occasional work contracts, for sporadic and occasional work activities, within the economic limits provided for by the legislation.

These economic limits, all referring to the calendar year in which the work is performed, correspond to:

• for each provider, with reference to all users, a remuneration in the total maximum amount of Euro 5,000;
• for each user, with reference to all the providers, a remuneration in the total maximum amount of Euro 5,000 (by virtue of the special regime provided for by the legislator, sports clubs that use stewards in the stadiums are excluded from the application of the limit of Euro 5,000, relating to the remuneration payable by the individual user to all the providers employed as stewards);
• for the services rendered overall by each provider in favour of the same user, a remuneration in the total maximum amount of Euro 2,500 (increased to Euro 5,000 for services provided by stewards to sports clubs).

These amounts refer to remuneration received by the provider, i.e. net of contributions, insurance premiums and management costs.

Exclusively in reference to each user with respect to all providers, the remuneration amount is calculated on the basis of 75% of its actual amount for the following categories of providers:

• holders of old-age or invalidity pensions;
• people younger than 25 years old, if regularly enrolled in a course of study at an educational institution at any level, or a course of study at university;
• unemployed people, pursuant to Article 19 of Italian Legislative Decree No. 150 of 14 September 2015;
• recipients of supplementary salary benefits, Inclusion Income (REI or SIA, which constitutes the Active Inclusion Support benefit currently in force to be replaced by REI), or other income support benefits.

Therefore, the limits to the total remuneration, in reference to each individual provider, are always to be considered in their nominal value. On the other hand, an individual user, for purposes of compliance with the economic limit, can calculate 75% of the remuneration paid to workers belonging to the categories indicated above (INPS Circular No. 107 of 5 July 2017).

Providers are entitled to disability, old age and survivor’s insurance, when registered in the Separate Pension Scheme, as referred to in Article 2, paragraph 26 of Law No. 335 of 8 August 1995. They also have the right to insurance for occupational accidents and illness, governed by the Consolidated Act referred to in Presidential decree No. 1124 of 30 June 1965.

The daily remuneration of the provider may not be less than Euro 36, equal to the remuneration of four working hours. The hourly rate shall be freely fixed by the parties, but it may never be less than Euro 9 per hour, without prejudice to the different limits applicable in the agricultural sector.

The remuneration due to the provider is subject to certain charges borne by the user: contribution to the Separate Pension Scheme, in the amount of 33%, and INAIL insurance, in the amount of 3.5%.

On the total payments made by the user, a management charge of 1% is retained by the INPS.

The law lays down certain strict limits on the use of occasional work contracts.

The prohibition to use occasional work contracts peremptorily applies to:

• entities with more than five permanent employees;
• companies in the construction and related sectors, companies involved in the excavation or processing of stone material, companies in the mining, quarry and peat sectors;
• within the context of public works or services contracts.

It is also not possible to make use of occasional work services by workers with whom the user has, or has had in the last six months, an employment or coordinated and continuous collaboration contract.

REGIME FOR AGRICULTURAL COMPANIES

Companies operating in the agricultural sector with a maximum of five employees may only use occasional work contracts for services provided by workers in the following categories:

• holders of old-age or invalidity pensions;
• people younger than 25 years old, if regularly enrolled in a course of study at an educational institution at any level, or a course of study at university;
• unemployed people, pursuant to Article 19 of Italian Legislative Decree No. 150 of 14 September 2015;
• recipients of supplementary salary benefits, Inclusion Income (REI or SIA), or other income support benefits.

The user is required to make a prior declaration at least one hour before the start of the same.

The daily minimum remuneration indicated by the user cannot be less than the minimum amount established for four working hours. The remuneration for any subsequent hours is decided at the discretion of the parties and in accordance with the minimum hourly amount provided for the agricultural sector.

The minimum remuneration is determined on the basis of the amount of the hourly remuneration of subordinated work indicated in the collective labour agreement signed by the trade unions that are comparatively more representative at a national level. In particular, there are three different hourly remunerations, based on the area to which the worker belongs.

• Area 1: Euro 9.65;
• Area 2: Euro 8.80;
• Area 3: Euro 6.56.

Companies in the agricultural sector may use occasional work contracts only if they employ certain categories of workers, which must not, in any event, have been entered in the lists of agricultural workers the previous year and which are:

• holders of old-age or invalidity pensions;
• students under 25 years of age;
• unemployed people, pursuant to Article 19 of Italian Legislative Decree No. 150 of 14 September 2015;
• recipients of supplementary salary benefits, REI or SIA, or other income support benefits.

SCHEME FOR PUBLIC ADMINISTRATIONS

Public administrations may use occasional work contracts only for temporary or exceptional needs and for specific activities provided for by law:

• in the context of special projects aimed at specific categories of people in positions of poverty, disability, detention, drug addiction or people using socio-economic safety nets;
• for carrying out emergency work related to unexpected natural events or disasters;
• for solidarity activities, in collaboration with other public bodies and/or voluntary associations;
• for the organisation of social, sports, cultural or charity events.

The prohibition on the use of occasional work contracts for employers with more than five employees does not apply to Public administrations.

SCHEME FOR HOSPITALITY COMPANIES AND TOURIST ACCOMMODATION COMPANIES

For hospitality companies and tourist accommodation companies operating in the tourism sector, with a maximum of eight permanent employees, occasional work contracts may only be used for services provided by workers belonging to the following categories:

• holders of old-age or invalidity pensions;
• people younger than 25 years old, if regularly enrolled in a course of study at an educational institution at any level, or a course of study at university;
• unemployed people, pursuant to Article 19 of Italian Legislative Decree No. 150 of 14 September 2015;
• recipients of supplementary salary benefits, Inclusion Income (REI or SIA), or other income support benefits.

If the hospitality company or the tourist accommodation company in the tourism sector is already registered as a user in the online occasional work platform, it will need to update its classification.

SCHEME FOR LOCAL AUTHORITIES

Local authorities can use occasional work contracts in accordance with the limits provided for by the legislation in force on the containment of personnel expenses, and without prejudice to the duration limit referred to in Article 54-bis, paragraph 20, of Italian Legislative Decree no. 50/2017, only to meet temporary or exceptional needs:

• in the context of special projects aimed at specific categories of people in positions of poverty, disability, detention, drug addiction or people using socio-economic safety nets;
• for carrying out emergency work related to unexpected natural events or disasters;
• for solidarity activities, in collaboration with other public bodies and/or voluntary associations;
• for the organisation of social, sports, cultural or charity events.

Local authorities, like any Public administration in general, are not subject to the prohibition on using occasional work contracts provided for employers with more than five employees, if the local authority is already registered, as a user, in the online occasional work platform.

In order to avail themselves of occasional work contracts, users must first register on the online occasional work platform and feed their virtual electronic portfolio, and then proceed to send the communication regarding the occasional work service through the INPS’ occasional work platform.

To this end, they can make the necessary payments using Form F24 Elide model, indicating “CLOC” as a reason for payment, or through the "Payment Portal".

The procedures for registration and communication of the data relating to the work provision can be carried out directly by the users and providers online or through the contact centre.

Also authorised intermediaries may operate in the name and on behalf of users and/or providers on the basis of specific proxies made in writing by the delegating party, using the appropriately drawn up procedure (Message No. 3177 of 31 July 2017).

To activate the occasional work contract and the related welfare schemes, users must communicate, through the dedicated online service, at least 60 minutes before the start of the service:

• the provider’s personal information;
• the agreed remuneration;
• the place of work;
• the duration;
• the work type;
• the work industry;
• other information for managing the employment relationship.

In the event that a user intends to revoke a previously inserted communication, he/she may log-in to the procedure and proceed with the revocation only within three days from the date on which the service should have been carried out.

At the same time as the user transmits the communication, the provider receives notification of the same (or of the revocation) by email or SMS.

In the event that the revocation is not made within the terms provided by law, the INPS will withhold the amount corresponding to the compensation agreed by the parties, regardless of whether the service has actually been carried out, proceeding to pay the provider and to allocate the social security and INAIL contributions for the provider’s benefit.

The provider may, through the online service, confirm the actual performance of a single daily service within the following three days. In this case, the possibility for the user to revoke the work contract is inhibited.

For agricultural and tourism companies and local authorities, the prior declaration must indicate a total estimated amount of time in reference to a period of no more than ten consecutive days.

Communication takes place through a daily schedule that is managed via the INPS system. It allows the user to specify the time frame for the completion of the service (from one to ten consecutive days), as well as the total duration of the aforementioned task. The declaration must be made at least one hour prior to the start time of the work.

The provision, by pensioners, of occasional work both under an Occasional Work Contract or Family Booklet (such as the babysitter bonus) may result in the non-cumulativeness of the pension with the employment income, with the effect of suspending the pension (e.g., “Quota 100” pension; pension to so-called early workers) or reducing the amount remitted (e.g., disability benefits, pensions to survivors, etc.).