The distinction between “employed” worker  and “self-employed” (employee with VAT number) affects the duties and rights of the employee, for example, the employee has the right to:

• application of CCNL agreements (minimum wage, vacations, various permits, maternity allowance, payment of the thirteenth salary, etc.);
• application of the rights on illegal dismissal in accordance with Art. 18 of the labor code, or in accordance with Art. 8 l 604/1966;
• TFR (severance payment);
• the ability to access the support institutions (such as NASPI);
• social security and taxation (if you want to know more about how to understand what is written on the paycheck, click here).

The choice between an employee with a VAT number and a hired employee is established by law on the basis of the method of work adopted in practice.

In accordance with article 2094 of the Civil Code, a hired employee is “who undertakes to work for the company for a wage, giving their intellectual or labor abilities under the guidance of the employer”, i.e. “subordinate and dependent” employee.

“Subordinate and dependent” means that the employee must comply with certain directives of the employer in carrying out their activities, namely:

• the employer gives clear instructions on how to perform the work, and has the ability to impose sanctions for non-compliance in accordance with the rules of the company;
• an employee can be part of a group of employees working together to achieve a result;
• production tools (such as machinery) are the property of the employer;
• workplace is the environment used by the employer;

1. 1. the employee is paid regardless of the result of his work or economic activity;
   2. payment is periodic;
   3. subject to working hours;
   4. a vacation must be agreed with the employer.

To know more, please contact Bonato Law Firm.