Fixed-term contracts in the Italian programs of foreign universities

In recent years foreign universities have launched various study programs in Italy. These programs are generally managed by non-profit legal entities, recognized by Italian law and called “branches” of foreign universities.

The programs have organizational, tax and financial specificities that generate significant complexities in the management of the employment contracts for the Professors of the program.

Such peculiarities have been duly taken into account in the regulation of fixed-term employment contracts, which was recently confirmed in the law converting the s.c. "labour decree" (Decree-law no. 48/2023).

The “branches” of foreign universities

The s.c. branches are non-profit entities whose typical purpose is to allow students of foreign universities, through a period of study abroad, to acquire additional skills compared to those they would acquire by training exclusively in their home Country. These must be skills that confer a quid pluris that cannot be acquired in the home country of the universities, or elsewhere.

The establishment of branches is authorized if it offers courses:

- with a strong link to the Italian territory, culture and history

- and which, at the same time, do not qualify or characterize the main degree course abroad (ex multis TAR Lazio n. 1579/2012).

Some examples of courses are: classical studies (Latin and ancient Greek), restoration, archeology or art studies.

The establishment of branches  of foreign university institutions in Italy is governed by art. 2 of Law 14 January 1999, n. 4, so-called Barile law, which provides:

“1. The provisions of this article apply to Branches in Italy of universities or higher education institutes at university level located in the territory of foreign countries and legally recognized there as non-profit entities, provided that:

a - have as their purpose and activity the decentralized study in Italy of subjects which form part of the teaching or research programs of their respective universities or higher institutes;

b - the teachings are given only to students who are enrolled in the respective universities or higher institutes.

2. The  Branches  referred to in paragraph 1, before starting their activity in Italy, shall send to the Ministry of University and Scientific and Technological Research, the Ministry of the Interior and the Ministry of Foreign Affairs a copy of the deed with which their establishment in Italy was approved, a copy of the bylaws and any other documents legalized by the competent Italian diplomatic or consular representation for the territory, suitable to prove the existence of the conditions referred to in paragraph 1.

3. The activity of  Branches  is authorized by decree of the Minister of University and Scientific and Technological Research. The authorization is considered granted after ninety days from receipt of the communication referred to in paragraph 2.

4. The authorization determines the application of the exemptions provided for by article 34, paragraph 8 bis, of the decree law of 2 March 1989, n. 69, converted, with modifications, by law 27 April 1989, n. 154.

5. The universities and higher institutes referred to in paragraph 1 may enter into private law contracts for teaching activities in compliance with the rules on teaching contracts envisaged for State universities, as well as pursuant to article 2222 of the civil code .”

Employment contracts in the s.c. branches

With reference to employment contracts, the law specifies that these entities may enter into employment contracts: - in compliance with the rules on teaching contracts foreseen for State universities or

- pursuant to article 2222 of the civil code.

It is therefore possible to enter into both self-employment contracts and employment contracts with the Professors of branches in Italy.

The law does not mandate the use of specific categories of employment contracts.

However, fixed-term employment contracts appear the most natural choice, particularly in the initial stage of the employment relationships, in light of the peculiar working arrangements for teachers.

Indeed, each course of the programs in Italy is limited to a few months of the year (typically four: s.c. semester). Upon completion of the courses, the individual teacher may or may not be involved in the following semester of study, depending on the new students' educational choices.

It follows that, often, periods of work can be alternated with periods of rest within the same year.

Therefore, fixed-term contracts are more suitable to allow the necessary flexibility.

Fixed-term contracts in branches of foreign universities

Given the "physiological" need to make use of fixed-term contracts, the legislator has preserved fixed-term employment contracts from the restrictions introduced by the s.c. dignity decree (decree law no. 87/2018) and these peculiarities were maintained also after the approval and publication of the most recent work decree (art. 48 DL 48/2023). As a result, the fixed-term contract at the branches of foreign universities has some specificities, which are further addressed in the following.

The special provisions apply only to Professors and not to the staff, such as, for example, administrative employees, librarians or those who manage housing facilities for students, often present in the Programs.

Maximum duration

As a rule, pursuant to art. 19 c. 1 of Legislative Decree no. 81/2015, a term of no more than twelve months may be set. The contract can have a longer duration, in any case not exceeding 24 months, only in specific circumstances.

However, the law, as an exception to this general rule, provides for the application of the "provisions in force prior to the date of entry into force of the decree-law of 12 July 2018, n. 87 converted, with amendments, by law 9 August 2018, n. 96.", in favour of the branches of foreign Universities, i.e. the provisions in force before the entry into force of the s.c. dignity decree.

According to these provisions "The employment contract may be subject to a term of no more than thirty-six months.”

Maximum number of fixed-term contracts

Unless otherwise provided for by collective agreements, workers under fixed-term contracts cannot exceed 20% of the total of permanent workers effective as of January 1st of the year of hiring (see art. 23 of L. D. 81/2005).

This limit does not apply to fixed-term employment contracts stipulated with Professors, which is a further indication of the regulatory favor of the affiliates.

Social security aspects

The social security protection for fixed-term workers hired for the Programs and the related costs for the University is the same as for workers hired with permanent contracts, except for the calculation of the s.c. additional contribution, which is less onerous for these institutions.

Indeed, for fixed-term contracts, an additional contribution must be paid by the employer. It amounts to 1.4% of the taxable salary for social security purposes, as also clarified by INPS with circular letter no. 91 of 4 August 2020.

The contribution is increased by 0.5% upon each contract renewal.

The 0.5% increase does not apply to contracts concluded by universities and research institutions with teachers and researchers.