Bank of Italy

Fixed-term employment: only 10 per cent is for seasonal work

In other cases, it is used to screen candidates or to fill a permanent position

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3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Out of ten companies with workers on fixed-term contracts, four systematically use fixed-term contracts and account for the majority of the total volume of fixed-term work. In fact, this is where 86 per cent of fixed-term workers are employed and, when considering the days worked under such contracts, 89 per cent of the total days are spent in these companies. This is revealed in the study ‘How do companies use fixed-term contracts?’, published by the Bank of Italia on 30 July 2026, which covers the period 2013–2017. The decision to examine this time period stems, the authors explain, partly from the fact that the proportion of fixed-term workers in Italia stood at 11 per cent, in line with the European average.

However, whilst the number of fixed-term workers was, all things considered, modest, the number of fixed-term contracts was far greater. This, the research continues, highlights a key feature of fixed-term work in Italia: a high rate of contract turnover. Furthermore, the regulation of fixed-term contracts was particularly permissive during that period, allowing for an analysis of companies’ choices with limited legal constraints.

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In companies that use seasonal contracts, this type of contract – which is determined by seasonal labour requirements – accounts for 67 per cent of the total. Overall, however, seasonal contracts account for around 10 per cent of all fixed-term contracts. The average duration of these contracts varies from one to three months. Companies, however, also use fixed-term contracts to assess workers before taking them on permanently: between 2013 and 2017, in Italia, this was the case in 21 per cent of instances.

Furthermore, three out of every four conversions to permanent contracts took place without any interruption to the employment relationship. If individual fixed-term contracts are taken into account, the Via Nazionale study continues, 10 per cent are converted into permanent contracts. When a fixed-term contract is used to assess an employee, the “probationary period” is usually covered by a single contract rather than multiple renewals.

Stabilisation and conversion

Whilst the splitting of employment into multiple contracts – being a rare occurrence – is not sufficient to predict whether a worker will be offered a permanent contract, a long duration of the first fixed-term contract is usually a strong predictor of a future permanent position. In particular, contracts with an initial duration of three, six or 12 months account for around one-third of conversions from fixed-term to permanent contracts. These are time frames commonly used by public administrations, as they facilitate the accounting of wages and social security contributions.

The conversion rate varies considerably across different sectors: from a figure close to zero in the film industry to over 50 per cent in manufacturing, transport and financial services. There are also considerable disparities in terms of employment status; for example, in service and sales roles, the likelihood of transitioning to permanent employment is significantly lower than in technical, clerical or engineering roles. Young people, older workers and women tend to have a lower rate of conversion from fixed-term to permanent contracts.

The use of fixed-term contracts

It is also possible that fixed-term contracts are used to replace permanent positions: in this case, these are workers who can be easily dismissed if necessary. As with their use for the purpose of assessing workers, the replacement of permanent positions is also linked to the company’s productivity and the volatility of its revenues. Whilst the most productive firms offer longer contracts and convert them more frequently, the least productive firms use fixed-term contracts to adjust staffing levels at the margin. Overall, amongst firms that make systematic use of fixed-term contracts, 10 per cent use them seasonally, around 25 per cent use them for screening, and around two-thirds use them for replacing permanent positions.

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