Employee classification: the hidden risk that could backfire

Why choosing the right category, qualification, tasks and level matters more than you think

Employee classification: a contractual cornerstone

The professional classification of an employee is a key element of any employment contract. From day one, employers must clearly define the employee’s legal category, job qualification, duties, and pay level. These factors shape the entire employment relationship, affecting rights, obligations, and remuneration.

Italian law, updated by Legislative Decree 104/2022, emphasizes the duty of employers to provide transparent information. Missteps can lead to legal disputes and back pay claims.

The four legal categories of employees

Under article 2095 of the Italian Civil Code, employees are divided into:

• Executives, with high-level responsibilities and strategic impact
• Middle managers, bridging the gap between executives and employees
• White-collar workers, focused on administrative and organizational tasks
• Blue-collar workers, directly involved in the production process

Selecting the right category means recognizing the employee’s true role and authority.

Qualification, duties, and pay level

Each legal category contains job qualifications, which reflect the skills and knowledge required. The duties assigned to the employee must match the pay level as per the applicable collective bargaining agreement (CCNL).

An incorrect match leads to underclassification or overclassification, both of which can have legal and organizational repercussions.

What happens when classification is wrong?

A lower classification than deserved can lead to:

• Legal claims for correct reclassification
• Requests for back pay
• Challenges to dismissal during probation

Conversely, a higher classification can hinder internal mobility and misalign job expectations.

Employer’s checklist

• Never use classification to reward seniority—opt for individual bonuses.
• Job duties always trump previous classification.
• Reassess classification if the employee’s duties evolve.
• Always consult the CCNL for proper alignment.