This article examines the Italian policy framework on the employment of disabled people. It discusses the strengths and limitations of Law 68 of 12 March 1999 (Regulation on the right to work of disabled people). Despite it having been enacted 16 years after being passed, Law 68/99 still faces problems in its implementation. The data analysis shows the propensity of firms to flout their obligations with regard to the recruitment of disabled people, preferring instead the risk of being sanctioned. In order for Law 68/99 to have a positive effect on the employment of disabled people, higher incentives (including subsidies for labour costs) must be introduced for employers, especially to enable the adaptation and adjustment of the workplace. With these inducements, firms would be encouraged to recruit disabled people and avoid penalties. In addition, disability management policies (still rarely implemented in the Italian workplace) and comprehensive training programmes can play a crucial role in overcoming discriminatory constraints regarding skills and physical ability, so as to increase the employability of disabled people in the labour market.