Italy

Companies in Lombardy Region can apply for co-funding for training costs. Vouchers are co-founded by ESF (50%), State (35%) and Region (15%). The eligible training depends on the specific call. Companies have to submit an application for a company training voucher for each individual course they intend to enrol their employees. Employees can benefit from one or more training courses, up to an overall value of EUR 2 000 on an annual basis. The maximum cost reimbursable to the company for the use of the courses differsaccording to the level of skills to be acquired.

Eligible groups (depending on the region, e.g. employed, unemployed, self-employed/professionals) can apply for training vouchers co-funded by the European Social Fund, and implemented at the regional level, according to the Regional Operational Programme

Italian citizens (unemployed, resident or domiciled in a municipality of the Region of Tuscany and over 18 years of age) and residents with a legal work permit can apply for the grant. Preferential treatment is not applied. The company turns to the Center for Employment expressing the need to find trained workers to be able to hire with an open-ended or fixed-term contract, including apprenticeships. After selection, an applicant (person belonging to the eligible group) enrols in the training programme. Eligible types of training include targeted and customised training courses to facilitate the matching of job supply and demand.

The scheme finances the training for unemployed or vulnerable groups (e.g. unemployed over 45) in relation to the labour market. Special courses to support vulnerable groups are considered eligible types of training. The scheme uses the resources of the funds collected for compulsory contribution to training due by all companies (the fund is collected by the National Institution for Social Welfare - INPS). Eligible costs include training plans and training fees.

Within the framework of the regional strategy Industry 4.0, financed within Regional Operation Plan ESF 2014-2020, Axis A "Employment", this intervention supports the acquisition and updating of the skills of entrepreneurs, managers, freelancers, necessary to promote an economic growth that protects quality and quantity of employment and is detached from environmental degradation. This intervention is part of Giovanisì, the Tuscany Region's project for the autonomy of young people.

"Fapi - Fondo Formazione PMI - is a joint interprofessional fund to promote the development of Continuing Education in SMEs. It is financed through the mandatory levy of 0.30% of the contributions that companies pay to INPS every month and that INPS pays to the funds to which companies adhere. The distribution of funds is very polarized in the regions where there is a high concentration of productive areas (Lombardy, Lazio, Veneto, Emilia Romagna and Piedmont). In Lazio, Puglia and Basilicata, it is the first fund in terms of the number of associated companies. The composition of members reflects the Italian reality characterized by a high share of small and medium-sized companies (almost 87% of companies have fewer than 20 employees) located mainly in the North.

The Joint Interprofessional Funds for Continuing Education are bodies of an associative nature founded and promoted by employer's organisations and trade unions and aimed at promoting training activities for employed workers. They are authorised to collect the 0.30% paid to INPS and redistribute it among their members (referring to the compulsory contribution for social security training established by Law 845/1978). By allocating the 0.30% to an Interprofessional Fund, the company will be guaranteed that what has been paid - by obligation (Law 845/1978) - can be returned to it in training actions aimed at upskilling employees. All types of education and training are eligible to be funded. Joining a fund is voluntary for companies.

Persons aged between 18 and 40 may apply for access to funding guaranteed by the Fund if they enrolled in tertiary education or language course leading to a certification (legally recognised in Italy; the course must last more than 6 months). No preferential treatment is applied. Tertiary education from Bachelor to Doctorate and language courses leading to a certification recognised by the State are considered eligible types of training. This is a general loan for study, and eligible costs are not provided in detail.

There is no legislation regulating the payback clause for training. The reference laws are labour laws. It could be included in the overall payback clause of the contract. The main legal basis is the Civil Code, Art. 2118, regulating relations between employers and employees: "Either party may terminate the permanent contract of employment, giving notice in time and manner established by corporate rules, custom or equity"(it refers to permanent contracts). 'Corporate rules' means collective agreements. Where not mentioned, it can be subject to negotiation between employer and employee.

Self-employed/professionals (having a VAT position) are eligible for the tax incentive. No preferential treatment is applied. This tax allowance allows to deduct up to an annual limit of EUR 10 000 for training, education and conference participation (including travel and fees costs); costs for personalised certification of skills, guidance, research and support for self-entrepreneurship, deductible up to EUR 5 000. The State covers the loss of revenue. The tax incentive can be re-used once in each calendar year. The eligible duration of the training leave is 20-30 working days.

The tax deduction applies to all citizens subject to tax revenue in Italy. It allows to deduct up to 19% of the costs of all levels of education as taxable yearly income. The state's co-funding - in the form of foregone tax revenues - equals the eligible costs multiplied by the marginal tax rate (between 23 % and 43 %). All individuals subjected to tax revenue are eligible for this tax incentive. All levels of education from nursery to higher education are eligible (including the deduction of education costs for children). The individual requires tax allowance on yearly basis, by providing evidence of the costs. The National Revenue Agency accepts the requests, therefore the taxable yearly income of the individual is accordingly reduced.

Fondartiginato promotes and realises lifelong learning initiatives aimed at enhancing human resources and developing the activity sectors of the craftsmanship of small and medium-sized enterprises. The objective of the Fondartigianato is the development of training practices that further qualify the work of craftsmen, "Made in Italy" and SMEs in the system of labour policies. Fondartigianato finances the training of workers whose companies have joined the fund. Depending on the specific call, women, migrants, workers under 35 are preferential treated. Eligible activities are: (a) management activities; (b) preparatory activities for the training plans drafting (such as e.g., advertising, communication, etc.); (c) activities aimed at financing training projects. The level of levy is 0.30%.

Employees can take training leave for completion of compulsory schooling, upon achievement of the qualification of the second degree, university diploma or degree, to the participation in training activities other than those organised or financed by the employer. The employee can ask for training leave, however, as a general rule, the employer can refuse, or ask to postpone permission according to organisational reasons. The number of allowed hours is defined within collective sectoral agreements. It is not necessarily paid.

Companies are eligible to a tax credit as contribution to the costs of training related to technological and digital transformation of the company. It is recognised to the following extent: 50% of the eligible expenses and up to a maximum annual limit of EUR 300 000 for small enterprises; 40% of eligible expenses within the maximum annual limit of EUR 250 000 for medium-sized enterprises; 30% of eligible expenses within the maximum annual limit of EUR 250 000 large enterprises. Training hours of employees (wage costs) are considered eligible costs. The same applicant can use the scheme once in each calendar year.