Updates in employment matters and administrative deadlines

European Employment Insights – March 2026

European professionals from Andersen, coming from over 20 different jurisdictions, have prepared the latest Employment Insights Newsletter on key developments, providing an overview of the most recent updates in employment law, guidelines, case law, and collective agreements from various countries.

The most relevant developments in the European employment law landscape: in particular, in Cyprus, employees working for multiple employers may request a refund of deductions exceeding the annual maximum insurable earnings.

To read the full newsletter, click here.

Updates in employment matters in Italy

For Italy, Partner Uberto Percivalle, head of the national Employment & Labor service line, outlined the most innovative legislative measures affecting employment law in our country, such as incentives for hiring workers under 35 and the new contribution reliability indices (“ISAC”).

“Milleproroghe” Decree 2026

Among the main measures in employment law is the expansion of the Special Economic Zone to the regions of Marche and Umbria, with the application of tax incentives and reductions in social security contributions for companies operating in these regions, aimed at encouraging investment and job creation. For example, the incentive for hiring women has been extended until 31 December 2026, and incentives for hiring young people under 35 have been extended until 30 April 2026.

Approval of the Contribution Reliability Indices (“ISAC”)

To strengthen the fight against contribution evasion, the Ministry of Labor and the Ministry of Economy have signed a decree introducing the ISAC for Italian employers. This measure makes it possible to verify whether the declared workforce is consistent with various economic parameters. The measure will initially apply to the wholesale food trade and hotel sectors.

In the event of discrepancies, these will be classified as more or less significant. INPS will send the companies concerned a “compliance” notice, highlighting the discrepancies and indicating the number of working days required to regularize their position.

Biennial Equality Report

For companies with more than 50 employees, the Ministry has reminded that the deadline for submitting the biennial report on the situation of male and female employees, through the electronic form, is set for 30 April 2026.

Geolocation systems for security guards

The National Labor Inspectorate has clarified that the geolocation system used for radio communications between the operations center and security guards cannot be considered a “work tool.” Therefore, its use requires a prior union agreement or authorization from the Labor Inspectorate, even though the authority acknowledges that geolocation meets organizational and production needs (such as urgent interventions) as well as occupational safety requirements.

Tax treatment of stock options

The Revenue Agency has confirmed that stock options vested during a period in which the employee was subject to the “conventional remuneration regime” are not subject to additional and separate taxation when exercised.

Furthermore, the conventional taxation regime applies to employees who, while remaining tax resident in Italy, are posted abroad for long periods and are therefore taxed based on conventional values established by law.