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Board-level Representation

There is no right to employee board level representation in Italy, and, although this has been proposed in the past,  change currently seems unlikely.

Since 2003 Italian companies have been able to choose between three forms of corporate governance.[1] These are the two systems found elsewhere in Europe, a single board (one tier) and a management board and a supervisory board (two-tier), and the specific Italian system where there is both a management and a supervisory board, but both are chosen by the shareholders and the supervisory board has an auditing rather than monitoring function. Employees have no right to board level representation, and the 2003 legislation specifically stated that those in an employment relationship with the company could not be elected to the supervisory board.

 

Past governments have proposed introducing board level representation but the necessary legislation to do so has not been passed.[2]

 

[1] Following the Company Law Reform Act Decreto Legislativo 17 gennaio 2003, n. 6

[2] One example is  was the Legge Fornero (Legge 28 giugno 2012 , n. 92) in 2012. This stated that detailed legislation would be introduced, to allow share-based companies with a two-tier structure and with more than 300 employees to permit employees to participate as members of the supervisory board with the same rights as all other members. However, the necessary implementing legislation has not been adopted.

L. Fulton (2020) National Industrial Relations, an update. Labour Research Department and ETUI (online publication). Online publication available at http://www.worker-participation.eu/National-Industrial-Relations.