At a glance
- The Italian government has extended the timeframe within which employers and employees can independently define the 'individual' reason for extending fixed-term contracts beyond 12 months.
- The implementing decree applies where no collective agreement provisions exist.
- The new deadline for this arrangement is 31 December 2026.
- It is a part of the Economy Decree which was converted into law in August 2025.
Under Decree-Law no. 95/2025, recently converted into law with amendments by Law no. 118 of 8 August 2025, the Italian government has extended the timeframe within which employers and employees can independently define the 'individual' reason for extending fixed-term contracts beyond 12 months.
This flexibility applies in cases where no relevant provisions are set out in collective agreements. The new deadline for this arrangement is 31 December 2026, giving employers additional time to manage workforce needs without being bound by sector-wide terms.
The measure forms part of the broader Economy Decree, aimed at supporting labour market adaptability and economic resilience. Employers should ensure that any individual reasons for term extensions are clearly documented and compliant with existing legal standards.
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