The Italian Senate approved the law on 4 May 2025. It regulates the forms of participation of workers in company life, implementing Article 46 of the Italian Constitution which “recognises the right of workers to collaborate, in the ways and within the limits established by law, in the management of companies.” The measure must now be published in the Official Journal. In this article, we take a look at each of the four areas of company participation that will be regulated by the new law.
The law allows, but does not require, that company statutes (e.g. the legal documents that define a company’s structure, operations, and relationship with its shareholders) provide for worker participation in strategic corporate decisions by including worker representatives in the administrative and control bodies, depending on the governance system adopted (dualistic or otherwise).
This form of participation is, however, secondary to collective agreements, which are expressly required for the implementation of these management participation measures.
With reference to workers’ participation in the profits and results of the company for 2025, which includes through forms of capital participation, it is expected that:
Further, the new law confirms the possibility for companies to implement employee financial participation plans that also include the allocation of shares in place of performance bonuses. Where certain conditions have been complied with, the value of these shares will not form part of the workers’ employment income and so will not be subject to the substitute tax for bonuses.
The law allows, but does not require, companies to:
Within the joint commissions, the new law introduces the possibility to consult in advance with the company Trade Union Representatives (RSA or RSU) or, in their absence, the workers’ representatives and the territorial structures of the bilateral sector bodies, about company decisions. This is to be done via a new ad hoc procedure that does not impact the consultative procedures already provided for by law or collective agreements.
For the purposes of developing technical, specialist and transversal knowledge and skills, the law also allows for a minimum of ten hours of training (including joint training) per year for members of joint commissions, as well as for workers’ representatives in the administrative and control bodies. This can be financed through bilateral bodies, the New Skills Fund or interprofessional funds.
With this new law, Italy takes a significant step towards a more inclusive and collaborative corporate culture—one where workers are not just employees, but active participants in shaping the future of their companies. While a number of the provisions are optional rather than mandatory, it is important that employers are fully aware of their scope and prepare accordingly. It is also noted that the implementation of some of the participation measures will depend on collective bargaining agreements. Employers should therefore expect more activity from the relevant trade union representatives in this regard.
