FAQ - UNDECLARED LABOR

Does it matter that the worker remained on a foreign (non-Italian) payroll?

No. Italy assesses legality based on physical work performed in Italy, not the payroll jurisdiction. Work performed without prior authorization is treated as undeclared foreign employment.
Source: Legislative Decree 276/2003 as amended; INL Note No.1091/2024.

Is this still an administrative violation or is it now criminal again?

It is criminal again. Unlawful staff supply, contracting, and secondment — the legal categories covering unauthorized inbound assignments — were re-criminalized in 2024.
Source: Law 56/2024 re-amending Art.18 D.Lgs.276/2003.

Is intent relevant? What if the employer planned to regularize later?

Intent is irrelevant. Violations are complete once an unauthorized foreign worker performs work in Italy. Later regularization does not extinguish past liability.
Source: enforcement interpretation under INL Note No.1091/2024.

When does Italy treat a foreign employee as “illegally employed”?

When a foreign national performs work physically in Italy before the employer has filed and obtained the required authorization (posting / secondment / work permit). Intent, payroll origin, and “temporary” status are irrelevant once work has begun.
Source: Law 56/2024 implementing DL 19/2024; INL Note No.1091/2024.

What penalties apply for  undeclared foreign work?

Arrest (up to one month) or a proportional fine calculated per worker per day of unlawful work, with aggravations for foreign workers and for recidivism.
Source: Law 56/2024; INL Note No.1091/2024.

Penalty Ranges and Cost

Once a foreign worker is found working without prior authorization, the undeclared-work penalty bands apply immediately.

  • 0–30 days: €1,800 – €10,800
    ($2,092.76-$12,556.57 USD)

  • 31–60 days: €3,600 – €21,600
    ($4185.52 - $25,113.13 USD)

  • 61+ days: €7,200 – €43,200
    ($8,371.04 - $50,226.26 USD)

  • Can these violations surface even without a complaint?

Yes. They can surface through tax mismatches, visa vendor correspondence, cross-border information requests, litigation discovery, or inspectorate intelligence triggers.
Source: INL enforcement practice and ministerial guidance.

Are civil liabilities also imposed?

Yes. Retroactive social security and insurance contributions for the entire unlawful period remain due, separate from the criminal/administrative sanction.
Source: Ministry of Labour Circular 6/2016; Art.18 regime post-2024.