Wage-setting in Italy: The Central Role Played by Case Law

In Italian law wage-setting is dealt with by all levels of the labour law sources. Some amount of interference comes from the supranational level: not so much from the ILO, which most relevant Convention on the matter has not been ratified by Italy, but rather from the European Union. Even though the Union has no competence in the area of pay, it has not been prevented from acting within the existing framework of European economic governance to issue recommendations aimed at influencing somehow wage-setting. As for the domestic sources, a major role in wage-setting is played by the Constitution, especially by article 36 setting out the right to a fair wage. Labour Courts, combining this constitutional provision with wage provisions included in sectoral collective agreements, have given rise to the ‘Italian way’ to the minimum wage. Its effectiveness is currently under discussion, alongside some proposals for introducing a statutory minimum wage, which has been lacking so far in Italy.