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General-Purpose AI Rules Begin to Matter for Workplace Tools

A new stage of the EU AI Act became applicable in August 2025, including obligations relevant to general-purpose AI. Employers integrating generative tools into recruitment, HR support or performance processes should understand the underlying model, permitted use and safeguards instead of assuming that a widely available product is automatically suitable for employment decisions.

Small Employers Face Higher Exposure for Unlawful Dismissals

Italy’s Constitutional Court removed the rigid six-month ceiling that limited compensation for certain unlawful dismissals by small employers. Company size still matters, but it no longer produces the same automatic cap. International groups should assess the employing entity, dismissal defect and realistic remedy instead of relying on a simplified “small company” assumption.

Delay in Challenging a Dismissal Is Not Always Conclusive

The Constitutional Court examined the effect of serious personal circumstances on the deadline for challenging a dismissal. Employers should continue to preserve evidence after the apparent expiry of a deadline, particularly where the employee may invoke an objective impediment affecting the ability to act.

Italy’s Employment Referendums Fail to Reach the Quorum

Italian voters were asked to repeal important parts of the rules on dismissals, small-employer compensation, fixed-term contracts and contractor liability. The quorum was not reached, so the legislation remained in force. Employers should nevertheless note the continued political and judicial pressure surrounding these areas.

A Single New Framework for Workplace Safety Training

Italy’s new State-Regions Agreement consolidates workplace safety training rules and finally defines mandatory training for employers. Groups operating in Italy should review who acts as employer, manager and supervisor, because organisational titles and statutory safety roles do not always coincide.

Italy Publishes the New Unified Safety-Training Agreement

The new State-Regions Agreement reorganises mandatory workplace safety training and introduces a long-awaited course for employers. International businesses should compare their existing training matrix with the new durations, content and transitional rules rather than assuming that historic certificates cover every role.

Italy Opens Access to Youth and Women Hiring Bonuses

Applications for Italy’s Youth and Women bonuses opened in May 2025. The incentives can reduce contribution costs for qualifying hires, but they are not automatic. Employers should confirm the worker’s status, the eligible hiring date and the net-employment conditions before relying on the relief.

The Ministry Explains Italy’s New Employment Rules

A March 2025 ministerial Circular provided the first consolidated operational guidance on the “Collegato Lavoro” (Law no. 203/2024). The document is especially useful for employers dealing with absence-based termination, fixed-term probation and remote conciliation. Templates should be updated together with the internal process that makes them work.

Reinstatement Extends to Dismissals Prohibited by Law

The Constitutional Court confirmed that the strongest remedy cannot depend on whether legislation uses the precise word “nullity”. Where a dismissal violates a mandatory statutory prohibition, reinstatement may follow. Employers should identify protected periods and prohibitions before analysing the strength of the underlying business reason.

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