On August 14th 2020 was published the so called “Relaunch Decree 2” ( Law Decree n. 104 released on August 14). The law decree set out further urgent measures concerning health, support for work and the economy as well as social policies connected to Covid19 emergency in Italy.
The Decree provided the following:
Wage Funds
- extension of the Wage Fund for another 18 weeks and inclusion of the additional contribution due for the Wage Fund for companies with a reduction in turnover of less than 20%;
- exemption from social security contributions for a maximum of four months, by 31 December 2020, for companies that do not apply for the extension of the Wage Fund;
Extension of fixed term- contracts
- extension or renewal of fixed-term contracts without cause until 31 December and no longer until 30 August 2020, but only once, for a maximum period of 24 months;
Bonuses
- new bonus of 1000 euros for seasonal workers in tourism, spas and entertainment damaged by the epidemiological emergency by COVID-19;
- new bonus of 600 euros for seafarers and seasonal sports workers;
- the bonus of 1,000 euro for freelancers/professionals for the month of May with a double track for the disbursement: automatically for those who have already benefited from it in the past, on request for those who have never applied for it;
Dismissals
- extension of the dismissal ban for employers who have not fully benefited from the Wage Fund or exemption from social security contributions, both for individual dismissal procedures initiated after February 23, 2020, and for those of collective dismissal.
The only exemptions to the dismissal ban are:
- Definitive termination of the production activity, which implies, however, the liquidation of the company itself without the possibility – not even partial – to continue production;
- mutual termination of the employment relationship with the employee in cases where the company’s collective agreement provides an incentive to leave. The employee, in this case, has the freedom to decide whether or not to accept the employer’s proposal. If the proposal meets with a positive outcome on both sides, the employee has the possibility of obtaining the Naspi benefit (unemployment benefit);
- If the definitive termination of the company is ordered and there is no possibility to carry out a temporary exercise, it is possible to dismiss the employees for bankruptcy of the company itself.
Exemptions
- exemption from the payment of social security contributions, for a maximum of six months after hiring, for companies that hire permanent employees, in the presence of an increase in net employment.
The Law Decree shall be transformed into law within October 13th 2020 and is currently under discussion at the Italian Parliament..
LABLAW will continue to provide you with updates as the situation unfolds in order to ensure you can manage your workforce, and hence. Please do not hesitate to contact us on + 39 02 30 31 11 or at info@lablaw.com if you have any questions. For more information on these articles or any other issues involving labour and employment matters in Italy, please contact Marcello Buzzini (Partner) of LabLaw at m.buzzini@lablaw.com or visit www.lablaw.com.
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