Italian courts clarify overtime and holiday pay rules

Recent Italian judicial rulings have clarified legal standards regarding overtime pay and holiday compensation for employees.

The Italian Supreme Court (Cassazione), in ordinance n. 1835/2026, addressed the complexities of proving overtime in discontinuous work arrangements, such as those experienced by truck drivers. The Court ruled that while workers must provide factual evidence of their hours and activities, they are not required to provide a legal qualification of their periods of inactivity. The distinction between periods where a worker is free to use their time and periods where they remain at the employer's disposal is a matter for the judge to determine.

Separately, the Court of Salerno (sentenza 1373/2026) ruled on the calculation of paid leave. The court recognized that holiday pay should not be reduced to a level that discourages employees from taking rest. In a case involving healthcare workers, the court determined that certain continuous and economically significant allowances must be included in the calculation of holiday pay to ensure the worker receives, in principle, their ordinary remuneration, aligning with European Union directives.