The Key Innovations in Procurement Introduced by Legislative Decree No. 19/2024

With Legislative Decree No. 19/2024, entitled “Further urgent provisions for the implementation of the National Recovery and Resilience Plan (PNRR),” significant innovations have been introduced regarding the procurement of works and services. Below are the main points summarized:


“Fair Treatment” Clause for Personnel Employed in Procurement

Firstly, Article 29, paragraph 2, of Legislative Decree No. 19/2024, provides that “personnel employed in the procurement of works or services and any subcontracting must receive a comprehensive economic treatment not less than that provided for by the most widely applied national and territorial collective agreement in the sector and for the area closely connected with the activity subject to the procurement.”Procurement

This provision introduces a sort of “fair treatment” clause concerning the economic conditions that contractors, and any subcontractors, are required to provide to personnel employed in the procurement of works or services, and any subcontracting.

Extension of Joint Liability

The same Article 29, paragraph 2, of Legislative Decree No. 19/2024, also states that joint liability, as prescribed for the client – who is jointly liable with the contractor for remuneration, including end-of-service payments, as well as social security contributions and insurance premiums due to workers in relation to the period of contract execution and within the limit of 2 years from its termination – also applies to cases of illegal subcontracting, procurement, and detachment.

This provision effectively supplements paragraph 2 of Article 29 of Legislative Decree No. 276/2003, by extending the scope of joint liability previously limited exclusively to “genuine” procurement.

Criminal Relevance and Sanctions in Cases of Illegal Procurement

Another important innovation is introduced by Article 29, paragraphs 4 and 5, of Legislative Decree No. 19/2024, by which the discipline of applicable sanctions in cases of illegal procurement is redefined.

Specifically, the provision essentially reinstates the criminal relevance of the offense of illegal procurement – as well as illegal subcontracting and detachment, all of which were previously decriminalized by Legislative Decree No. 8/2016.

This is aimed at combating the phenomenon of resorting to illegal procurement contracts, within which the contractor merely provides the workers’ services to the client, without effectively exercising organizational and managerial power over them, which instead is directly exercised by the client.

In detail, in cases of illegal procurement, the provision states that the user and the supplier:

  1. are punishable by imprisonment for up to one month or a fine of €60 for each worker employed and for each day of employment (note: if minors are exploited, the penalty is imprisonment for up to eighteen months and the fine is increased up to sixfold);
  2. are punishable by imprisonment for up to three months or a fine of €100 for each worker employed and for each day of employment, when labor supply is carried out with the specific purpose of circumventing legal provisions or collective agreements.

The above-mentioned sanctions are increased by 20% if, in the three years prior, the employer has been subject to criminal penalties for the same offenses.

In any case, the amount of the sanctions cannot be less than €5,000 or exceed €50,000.


The LDP Team is available to provide legal assistance and consultancy to its clients regarding the correct interpretation and implementation of clauses provided in procurement contracts, as well as the management of the employment relationship of personnel employed within such contracts.

In light of recent legislative changes, and considering, among other things, the provision of the “fair treatment” clause for workers assigned to procurements, the LDP Team, with specific reference to procurement contracts, is therefore able to support its clients in:

  • drafting customized employment letters for workers assigned to procurements;
  • identifying the correct applicable National Collective Labor Agreement (CCNL) considering, among other things, the subject matter of the procurement itself;
  • determining the correct contractual classification level based on the tasks assigned to workers assigned to procurements;
  • analyzing and correctly implementing any social clauses provided in the applicable CCNL concerning cases of procurement change.

LDP provides Tax, Law and payroll  scalable and customised services and solutions. LDP Professional have also matured a significant expertise in  M&A, Corporate Finance, Transfer Price, Global Mobility Consultancy and Process Automation. 

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