Employment Lawyers in Milan for unlawful EOR terminations 
Dimarco & Partners International Law Firm

Are you working in Italy for a foreign company in Milan or Italy through an Employer of Records (EOR)? If you've been dismissed or fear dismissal, you may have more legal rights than you realize. Many international employees in Italy don't understand that EOR dismissals often violate Italian employment law, creating opportunities for significant compensation claims.
This comprehensive guide explains your rights when facing dismissal by EOR and how our employment lawyers Milan and throughout Italy are successfully challenging these arrangements to secure dual compensation for affected workers.
Understanding EOR Arrangements in Italy
An Employer of Records (EOR) serves as your formal employer while you actually work for a foreign company that hasn't established an Italian entity. This triangular relationship is increasingly common among:

• Remote workers for US, UK, and European companies
• Executive positions in multinational corporations
• Specialized professionals in tech, finance, and consulting
• Project managers and consultants for international clients

However, most EOR arrangements in Italy operate without proper authorization, creating what Italian law defines as irregular staff leasing (somministrazione irregolare).
Legal Framework: Why Most EOR Dismissals Are InvalidUnlicensed Operations Violate Italian Law
Article 32 of Legislative Decree 81/2015 requires specific authorization for staff leasing activities. Most EORs lack this mandatory license, making their operations inherently illegal under Italian employment law.
The 2020 Legal Clarification
A crucial development came with Article 80-bis of Decree-Law 34/2020, which clarified that dismissals are not included among employment acts that can be attributed to client companies. The Italian Supreme Court confirmed this provision applies retroactively to all cases.
This means your EOR dismissal may be legally ineffective.
Your Dual Compensation Rights:
A Unique AdvantageUnlike traditional employment disputes, EOR dismissal cases offer a unique opportunity to pursue two separate compensation claims simultaneously:
1. Challenge the EOR Dismissal - Wrongful Termination Compensation
You can challenge the dismissal issued by your EOR as legally invalid, seeking:

• Reinstatement to your position
• Back pay from dismissal date
• Severance compensation under Italian employment protection laws

2. Claim Direct Employment - 2.5 to 12 Monthly Salaries
Under Article 38(2) of Legislative Decree 81/2015, you can simultaneously request establishment of a direct employment relationship with your actual employer (the foreign company), plus mandatory compensation.
Article 39(2) requires courts to award comprehensive compensation between 2.5 and 12 monthly salaries based on:

• Company size and resources
• Severity of the violation
• Duration of irregular arrangement
• Your professional level and responsibilities

Recent Court Orientation:
The Italian Supreme Court (Cassazione) ruled in November 2023 that employees can simultaneously:

• Challenge EOR dismissals for procedural invalidity
• Seek direct employment recognition with the actual employer
• Claim compensation from both entities without conflict

Court of Appeals Strengthens Protection
The Trieste Court of Appeals ruled in July 2024 that EOR dismissals produce no legal effect against the actual employer, making such dismissals essentially meaningless.
Compensation Calculation: Depending on your employment terms and company size:

• Reinstatement with full back pay (Article 18 protection)
• Severance compensation under "tutele crescenti" system
• Notice period compensation
• Additional damages for procedural violations

Irregular Staff Leasing Compensation
The 2.5 to 12 monthly salary range is calculated using your severance pay reference salary. Recent cases show:

• Senior executives: Often awarded 8-12 monthly salaries
  
• Mid-level professionals: Typically 4-8 monthly salaries
  
• Junior employees: Usually 2.5-5 monthly salaries
  

Total compensation often exceeds €50,000-€200,000 for senior positions.
Evidence You Need: Document evidence showing the foreign company's actual control:

• Email communications with foreign company managers
• Performance reviews conducted by client company
  
• Project assignments and deadlines from actual employer
• Company resources (equipment, software, access credentials)
  
• Integration into foreign company's organizational structure

Demonstrating EOR Limitations: show the EOR's lack of real control:

• No operational decisions y EOR personnel
  
• Minimal interaction with EOR beyond payroll
  
• Client company supervision of daily work
  
• Direct reporting to foreign company management
  

Strategic Legal Approach: Maximizing Your RightsImmediate Actions After Dismissal

1. Preserve all documentation of your working relationship
   
2. Challenge the dismissal within legal deadlines (60 days for most cases)
   
3. Consult employment lawyers Milan or your local area immediately
4. Continue working if possible (dismissal may be ineffective)
   
5. Document any retaliation or pressure from either employer
   

Legal Strategy Benefits: our Employment lawyers Milan and throughout Italy are successfully using this dual-track approach:

• Higher total compensation than single claims
• Multiple legal theories increase success probability
• Pressure on both parties for favorable settlements
• Protection against appeal risks

Why our Employment Lawyers Milan we can handle EOR dismissal cases because:

• International business hub with many EOR arrangements
• Specialized expertise in complex employment law
• Experience with foreign companies and cross-border issues
• Track record of successful dual compensation claims
• Resources for complex litigation against international entities

Timeline and Process: What to Expect
Immediate Phase (0-60 days)

• Challenge dismissal before employment tribunal
• Gather evidence of actual employment relationship
• Formal notice to both EOR and client company
• Attempt settlement negotiations

Litigation Phase (6-18 months)

• Court proceedings for both claims
• Discovery process for employment evidence
• Expert testimony on EOR arrangements
• Potential settlement discussions

Resolution Phase

• Court judgment on both claims
• Compensation award from both parties
• Enforcement against international entities
• Appeal considerations if necessary

Settlement Advantages

• Faster resolution than full litigation
• Certainty of payment vs. judgment collection risks
• Confidentiality protection for both parties
• Continued employment possibilities in some cases

Preventive Measures: Protecting Yourself before problems arise

• Document your working relationship regularly
• Understand your EOR contract terms and limitations
• Maintain records of actual employer interactions
• Know your rights under Italian employment law
• Establish relationship with our employment lawyers Milan or locally

Red Flags to Watch

• EOR refuses to provide employment documentation
• Client company discusses termination directly
• Sudden changes in working arrangements
• Pressure to accept unfavorable contract modifications
• Threats related to your immigration status

Conclusion: Your Rights Are Stronger Than You Think. If you're working in Italy through an EOR arrangement, you have significant legal protections that many employees don't realize. EOR dismissals are often legally invalid, and you may be entitled to substantial compensation from both your formal employer and the company you actually work for.
The combination of wrongful dismissal compensation and 2.5-12 monthly salary awards for irregular staff leasing creates powerful leverage in these cases. Recent court decisions have strengthened employee rights, making this an opportune time to challenge EOR dismissals.
Don't accept an EOR dismissal without understanding your full legal rights. Consult with experienced employment lawyers Milan or in your area to evaluate your specific situation and potential compensation claims.
The Italian legal system provides robust protection for employees in irregular employment arrangements, but these rights must be actively pursued within legal deadlines. With proper legal representation, many employees recover substantial compensation while establishing direct employment relationships with their actual employers.