Last Updated on May 20, 2025
The Italian Senate gave its final approval to the law regulating forms of employee participation in company life, implementing Article 46 of the Constitution, which ‘recognises the right of workers to collaborate in the management of companies, in the ways and within the limits established by law’.
In summary, the law regulates four forms of participation:
1. Management participation
The law allows, but does not require, company statutes to provide for employee participation in strategic company decisions with the inclusion of employee representatives in management and control bodies, depending on the system of governance adopted (dualistic or otherwise).
This form of participation is, in any case, subject to the rules laid down by collective agreements, to which definition of the relevant procedures is expressly delegated.
2. Economic and financial participation
With reference to employee participation in company profits and results, including through forms of capital participation, limited to the year 2025, the law stipulates that:
- in the event of distribution to employees of a share of company profits totalling not less than 10% of total profits, the limit of profits subject to the 5% substitute tax under the terms of Italian Law 208/2015 increases from €3,000 to €5,000 gross;
- 50% of the amount of dividends paid to employees and deriving from shares granted in lieu of performance bonuses under Italian Law 208/2015, up to and not exceeding €1,500 per year, be exempt from income tax.
It also confirms that companies can implement employee financial participation plans that also contemplate the attribution of shares in lieu of performance bonuses, the value of which, under certain conditions, does not contribute to forming employee income and is not subject to the substitute tax for bonuses.
3. Organisational participation
Also in this case, the law allows, but does not require, companies to:
- set up joint committees, consisting of company and employee representatives, for the drawing up of innovation and improvement plans for products, production processes, services, and work organisation;
- identify in their organisational charts, within the framework of company collective bargaining, contact persons for training, welfare plans, and those responsible for training, welfare plans, remuneration policies, workplace quality, settlement, and parenting, as well as those responsible for diversity and the inclusion of people with disabilities.
4. Consultative participation
Where joint committees are concerned, this law introduces the possibility of advance consultation on company decisions with the company trade union representatives (RSA or RSU) or, failing that, employee representatives and the local structures of the sector bilateral bodies, with the introduction of a specific procedure, without prejudice to the consultative procedures already provided for by law or by collective agreements.
For the purpose of developing technical, specialist and core knowledge and skills, this law also introduces no fewer than 10 hours of training per year for the members of joint commissions as well as for employee representatives in the administration and control bodies. This may also be in joint form and may be financed through the bilateral bodies, the Fondo Nuove Competenze (New Skills Fund) or interprofessional funds.
Toffoletto De Luca Tamajo is at your disposal to support you in understanding and implementing these new provisions.
Per maggiori informazioni: comunicazione@toffolettodeluca.it
