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Italian Authorities approves new labour market reforms

Italian court

On 1 Might, the Italian authorities’s Council of Ministers authorized a brand new “Labour Decree” that can make vital modifications to present employment legislation provisions. The ultimate textual content of the Decree has not but been printed within the Official Gazette, however under is a abstract of the principle provisions that can have an effect on employers primarily based on the present draft.   

  • Simplification of the foundations governing fixed-term contracts: The Labour Decree will introduce modifications to the grounds on which fixed-term contracts could be validly prolonged past 12 months, with the purpose of giving employers extra flexibility. Mounted-term contracts will probably be permitted for longer than 12 months (as much as 24 months) if one of many following circumstances is met: (i) in circumstances supplied for by the relevant collective settlement; (ii) for technical, organisational or manufacturing wants recognized by the events, pending activation of the grounds set out within the relevant collective settlement – this situation solely applies till 30 April 2024, though we’re ready for clarification of the date by the Council of Ministers, because the press launch regarding the brand new Decree refers to 31 December 2024;  or (iii) to switch workers who’re absent from work.  
  • Simplification of knowledge to be supplied to workers on phrases and circumstances (the “Transparency Decree”):  Employers will probably be handled as having complied with their obligations to offer sure data in writing to workers about their phrases and circumstances of employment (e.g. the length of the probationary interval; length of holidays and different go away, discover intervals; remuneration and its constituent parts; scheduling of working hours; and so on.) in the event that they refer workers to the related authorized provision or collective bargaining settlement the place these particulars could be discovered. The Labour Decree locations an obligation on employers at hand over or in any other case make out there to workers (together with publication on the corporate’s web site) the collective agreements and rules relevant to the employment relationship. 
  • Discount in social fees:  The Labour Decree offers for a discount in contributions payable by workers by 7% for workers with a gross revenue of lower than €25,000 and by 6% for workers with a gross revenue of lower than €35,000.  The purpose is to reinvigorate the cuts to social fees that have been launched with impact from 1 January 2023 underneath the Price range Regulation. These additional reductions will apply from 1 July to 31 December 2023.
  • New hiring incentives: Supplied sure necessities are met, employers will probably be granted monetary incentives for brand spanking new hirings of youthful employees which happen between 1 June and 31 December 2023.  To be eligible, the brand new hires should be underneath 30 on the date of recruitment; not at the moment working or in schooling or coaching; and registered within the Youth Employment Initiative (“Iniziativa Occupazione Giovani”).  A cap of €80 million has been positioned on the quantity that’s out there underneath this incentive for employers for 2023. 
  • Fringe advantages: The federal government will improve the non-taxable threshold for fringe advantages for workers with a number of dependent youngsters from €258 to €3,000 till the top of 2023.    
  • Strengthening of well being and security guidelines: The Labour Decree introduces: (i) a brand new obligation on employers to nominate a reliable physician if required by a threat evaluation; (ii) new protections for self-employed employees on building websites; and (iii) a brand new obligation on employers to offer particular coaching on use sure tools for skilled actions, along with new sanctions for non-compliance.

In case you have any questions in regards to the new Labour Decree, please contact me on



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