Italian law distinguishes between:
- assignment contract:
Contract, subcontract, assignment contract definition
The contract is a type of contract through which a client assigns a contractor to carry out a work or service. The work will be carried out in exchange for an economic compensation established or to be established. With the contract, the contractor becomes the owner, bears the risk and the responsibility to conclude the work or service covered by the contract, with its own organization and with the necessary means.
Subcontract is a contract by which the contractor, in charge of carrying out a work or service by the client, in turn entrusts another person with the completion of the same works. In essence, it is a kind of delegation for the execution of the works required by the client. Even the subcontractor performs the service or work subject of the contract with its own organization and means.
The subject of the subcontract is the same as in the contract. The only restriction is that the delegation of the work or service provision by the contractor to the subcontractor must be authorized by the client. The contract and subcontract are 2 separate contracts. In the event of non-compliance, the client may take recourse against the contractor and the contractor against the subcontractor. The obligations of the contract and subcontract are divided between the customer or sub-customer and who carries out assigned tasks.
Contract of assignment
In the event of a contract of assignment a new contractor takes over. But in this case, the work to be carried out is not done only with the organization and the means of the contractor who is given the contract. In these cases, the new contractor must acquire the staff already employed in the execution of the work, from the previous contractor. On this point 2 opposing interests collide, both subject to constitutional protection:
- The freedom of economic initiatives;
- The social purpose of the economic initiative and the safeguarding of working activity.
Just because the two interests are opposed and both protected, there is no exact law to regulate them. In the event of a contract assignment, the subjects establish through the safeguard clauses the rights and obligations that each of them have.
The social safeguard clauses in the cases of contract assignment
Therefore, in the case of contract assignment, the social safeguard clauses must be regulated in the sense of protecting workers who lose their job due to the assignment of the contract.
In the event of assignment of an international contract, the clauses of the international contract are valid for which you can READ MORE HERE: The international commercial contract. Clauses, Applicable Law