Equivalence Declarations in Procurement Contracts: 2025 Guide

The issue of collective agreement equivalence has become central in the new framework for public procurement, particularly following the changes introduced by Legislative Decree 209/2024, the corrective decree to the Public Procurement Code (Legislative Decree 36/2023), in force since 31 December 2024. Today, the equivalence declarations in procurement contracts represents one of the most important tools for ensuring a fair balance between competition, quality and labor protection.

What Is an Equivalence Declaration in Procurement Contracts?

The equivalence declaration allows an economic operator to participate in a tender even if applying a collective agreement different from the one indicated in the tender documents, provided that the operator can demonstrate that the economic and regulatory conditions offered to workers are equivalent or more favourable.

Article 11 of the Public Procurement Code established the principle of equivalence. The provision states that, where a different collective agreement is applied, the economic operator must submit a declaration certifying the equivalence of protections, placing responsibility on both the company and the contracting authority in verifying compliance.

This mechanism forms part of a broader strategy aimed at promoting sustainable and socially responsible procurement, while countering forms of contractual dumping.

2025 Updates: Applicable Collective Agreements and Equivalence Assessment

Annex I.01 of the Procurement Code, introduced by Legislative Decree 209/2024, provides a comprehensive and detailed framework governing the identification of the applicable collective agreement and the submission of the equivalence declaration. The aim is to ensure interpretative consistency and greater operational certainty for contracting authorities and economic operators.

Scope of Application and Submission of the Equivalence Declaration

The provisions of the Annex apply to all public contracts and concessions, both with respect to identifying the relevant national or territorial collective agreement and to the submission and verification of the equivalence declaration concerning economic and regulatory protections. Article 5 further clarifies that the declaration must be submitted at the tender stage, so that the contracting authority can verify its adequacy before awarding the contract.

Identification of the Collective Agreement and Operational Rules

Under the new system, the identification of the collective agreement consistent with the activities covered by the contract is based on objective and transparent criteria, such as the ATECO classification of activities and the comparative representativeness of the signatory organisations. Reference is also made to the Ministry’s tables on average labour costs, which serve as technical parameters for determining consistency among applicable agreements.

A key provision is the prohibition for contracting authorities to impose the application of a specific collective agreement as a participation requirement under penalty of exclusion. This measure protects competition and places responsibility on companies, which must independently demonstrate the conformity of their collective agreement through the equivalence declaration.

Presumption of Equivalence

Article 3 of the Annex introduces the concept of presumption of equivalence, a mechanism designed to strike a balance between flexibility and oversight.

In practice, protections are presumed equivalent where national or territorial agreements are jointly signed by the same comparatively most representative trade unions, even with different employer organisations than those that signed the agreement indicated in the tender, provided that the agreement relates to the same subsector. Furthermore, the economic operator must apply to its employees the collective agreement corresponding to its size and legal nature, ensuring a correct and proportionate application of protections.

Criteria for Assessing Equivalence in Procurement Contracts

Where a different collective agreement is applied, Annex I.01 provides guidance on the criteria for assessing equivalence, which must cover both economic and regulatory aspects.

For the economic assessment the following must be evaluated:

annual base wage;
contingency allowance;
separate wage element (EDR);
any additional monthly payments;
any other applicable allowances.

For the regulatory assessment the following aspects must be examined:

rules governing supplementary and overtime work, including maximum limits and compensations;
clauses on part-time work;
compensatory provisions for abolished public holidays;
duration of the probation and notice periods;
rules on illness and accidents, including the protected period and any supplementary indemnities;
maternity provisions and any supplements to compulsory and optional parental leave allowances;
number of paid leave hours;
bilateral body provisions;
reporting obligations to social security bodies, including the construction workers’ fund, insurance and workplace safety institutions;
health and safety training, including initial and periodic training requirements;
supplementary pension schemes;
supplementary healthcare schemes.

Protections may be considered equivalent when:

the economic treatment under the operator’s collective agreement is at least equal to that provided under the agreement indicated in the tender; and
deviations from the regulatory criteria are only marginal.

Recent Case Law: The Declaration as an Essential Requirement

Recent case law has confirmed that the equivalence declaration is not a mere formality but a substantive requirement for participating in procurement tenders.

In particular, the Regional Administrative Court (TAR) of Lombardy, Milan, judgment no. 1635/2025, concerning a catering sector tender, confirmed that failure to document equivalence between the declared collective agreement and the one required by the tender may lead to exclusion. Similarly, the Council of State, in judgment no. 7281/2025, reiterated the obligation for contracting authorities to conduct a documented and reasoned verification of the equivalence declaration, assessing the actual protections granted to workers.

Practical Implications for Companies and Contracting Authorities

In operational terms, the equivalence declaration directly affects organisational choices and the documentation required in tender procedures, requiring companies to prepare their submissions carefully and contracting authorities to carry out a substantive assessment of the actual protections provided.

For companies

Prepare analytical documentation: compare the applied collective agreement with the one indicated in the tender, highlighting equivalent economic and regulatory protections.
Justify any differences: clearly explain how protections are equivalent or more favourable, avoiding generic statements.
Stay updated: monitor contract renewals and deadlines to ensure ongoing compliance with Annex I.01 criteria.
Maintain evidence: keep full traceability and transparency of all comparisons carried out.

For contracting authorities

Substantive and documented verification: thoroughly assess the equivalence declaration, comparing all wage and regulatory items against Annex I.01 criteria.
Clear reasoning: justify the decision to accept or reject the declaration.
Preventive and ongoing checks: periodically verify the collective agreements applied by operators and any updates.
Internal training: ensure that relevant offices are familiar with substantive equivalence criteria.

Transparency and Confidence in Your Equivalence Declaration: We Can Help

Studio Associato Pagani supports companies in drafting equivalence declarations, analysing the economic and regulatory profiles of the applied collective agreements and helping businesses prepare clear, coherent and compliant documentation in line with contracting authorities’ requirements.

Contact us to learn more!