How to transfer employees from an EOR to your new Italian entity

You hired in Italy through an Employer of Record (EOR). Now your own Italian entity is ready. The next step is moving your people across. The legal work matters, but the people side decides whether the move goes well.

This guide focuses on two things: continuity and communication.

Start with what must not change  

Your employees did not ask for this change. For them, it should feel like a change of payroll sender, not a change of job. Decide early what stays the same:

• Role, title and reporting line.
• Pay and benefits, at least at the same level.
• Working location and working pattern.
• Recognition of their time already served.
• The collective agreement that applies to their work.

Write this list down. It becomes the backbone of your plan and of your message to staff.

Map what the EOR does today  

An EOR does many small jobs that people never see. Before you switch it off, list them all. Typical items include:

• Monthly payroll and payslips.
• Social security and tax filings.
• Holiday and leave tracking.
• Benefit schemes and insurance.
• Expense reimbursement.
• Employee contracts and personnel files.
• Health and safety duties.

Your new entity must be able to do each of these on the day it takes over. If it cannot, the gap lands on your employees first. A late payslip or a missing benefit will damage trust faster than any legal detail.

Get the entity ready before you announce  

Do not tell staff about the transfer until the entity can actually employ them. Check that it is registered with the right authorities, has a payroll process, and has the insurance and registrations an Italian employer needs. Check that you have a labor adviser or payroll provider in place.

Announcing too early creates questions you cannot answer. Staff will fill the silence with worries.

Review the EOR contract  

Your agreement with the EOR sets the terms for ending the service. Look for notice periods, handover duties, fees on exit and any restrictions on moving staff. Talk to the EOR early. A good provider expects this day and will help with a clean handover of records.

Ask for a full export of employee data, leave balances, payroll history and contract documents. You will need them to keep continuity.

Plan the legal route with an adviser  

How the employment moves from one employer to another depends on the facts. Your adviser will tell you which route fits your case and which formal steps and signatures are needed. Make sure the route preserves the employee’s service history and does not leave any gap in coverage.

This article does not replace that advice. Use it to prepare the questions you bring to your adviser.

Communicate in the right order  

The order of messages matters.

Managers first. Brief them before anyone else. They will get the questions, so they need the answers.

Then each employee, personally. Do not rely on a company-wide email alone. A short call or meeting with the direct manager works best. Follow it with a written summary.

Then the formal documents. Send the new contract or transfer paperwork with a clear explanation of what changes and what does not.

Keep the message simple. Say why you are doing it, what stays the same, what changes on paper, and who to ask. Offer to answer questions in Italian if that is the employee’s first language.

Questions staff will ask  

Prepare clear answers to these:

• Will my salary change?
• Will my benefits change?
• Is my service history recognised?
• Who is my employer from now on?
• Who do I contact for payroll or HR questions?
• Will my holiday balance carry over?
• Do I need to sign anything?

If you do not know an answer, say so and give a date for the reply. Then keep that promise.

Run the payroll cutover carefully  

Payroll is the most visible part of the transfer. Pick a cutover point that matches a pay period boundary. Run a parallel check if you can: compare what the EOR would have paid with what your new process calculates. Fix any differences before the first real payslip.

Tell employees what the first payslip will look like and who issued it. Surprises here cause the most anxiety.

Keep records clean  

Store the handover documents in one place. Keep a record of what was communicated and when. If an employee later asks about their history, you should be able to show it.

After the move  

Check in with each employee a few weeks later. Ask if payroll, benefits and tools work as expected. Fix small problems fast. Thank the EOR for the handover and close the loop on any open items.

A good transfer is quiet. People keep working, get paid correctly, and know who their employer is. That is the goal.

Find the country site for your market or request a quote to plan your move from EOR to your own Italian entity.