The contratto a tempo indeterminato (permanent or open-ended employment contract) is the default and legally preferred form of employment in Italy. It has no predetermined end date and can only be terminated by the employee through resignation or by the employer on grounds of giustificato motivo (justified reason) or giusta causa (just cause). All other contract types are considered exceptions and require specific justification.
Following the Jobs Act reforms of 2015, employees hired on permanent contracts after 7 March 2015 are covered by the regime of tutele crescenti (incrementally increasing protections). Under this regime, the remedies available for unfair dismissal are predominantly financial rather than reinstatement, and the compensation amount increases with seniority. Reinstatement is reserved for dismissals that are discriminatory or where the factual basis for a disciplinary dismissal is entirely absent.
Employers benefit from reduced social security contribution incentives when hiring certain categories of workers on permanent contracts, including young people under 36 and individuals who were previously unemployed. The contratto a tempo indeterminato also triggers the full suite of TFR, paid leave, and CCNL protections.