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Italy: Salary due to employees even if business activity is suspended due to Covid-19

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In brief

Employers cannot stop paying salary even when business activity is suspended due to COVID-19.

Contents

Indeed, according to the Labour Courts of Bologna, the employer’s decision to  temporarily shut down business activity during COVID-19 does not constitute a force majeure event that can justify the suspension of payment of salaries to employees. Such a decision is to be seen as a risk typically inherent to the performance of business activity – something that does not have an impact on the employees’ right to salary.

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Author

Massimiliano (Max) Biolchini joined Baker McKenzie in January 1999. He became a local partner in the Milan office in 2004 and was elected partner in 2011. He is the Head of the Italian Employment Law Practice and is member of the Steering Committee of the EMEA Employment Practice Group. He advises clients on all aspects of labor and employment law. He regularly contributes to the employment section of the prestigious Italian business newspaper Il Sole 24 Ore.

Author

Uberto Percivalle is a partner in the Firm’s Milan office, where he has practiced since 1990. He focuses on employment law.

Author

Antonio Luigi Vicoli is counsel in the Employment & Compensation Practice Group of Baker McKenzie Italian offices. He is a multilingual lawyer with English proficiency. Antonio is professionally qualified under the laws of Italy and admitted to practice in Italy, enrolled with the Lawyers’ Bar of Milan.

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