Changes and prospective changes to Italian Employment law

15 December 2014

On December 4, 2014, the Italian Parliament has delegated the Government to issue, not later than in the successive 6 months, various legislative decrees amending the current termination rules, according to following principles:

  • further reduction (after 2012's intervention) of the reinstatement cases to discriminatory, termination for illegitimate reasons and  some of the (allegedly) disciplinary termination only;
  • no reinstatement for terminations due to economic reasons, where only economic sanctions will be provided;
  • increasing level of protection in case of termination depending on employees' seniority; The above changes should only apply to prospective new hires: however the effective extent of these changes is still not clear and its construction controversial Additional prospective decrees will introduce:
  • simplification and reduction of the 46 types of employment contracts;
  • reduction of cases of intervention by Cassa Integrazione Guadagni Strairdinaria (CIGS, a peculiar kind of unemployment benefit);
  • unification of unemployment insurance intervention.

If your company is planning to proceed either to individual or collective terminations or to request the intervention of CIGS, we recommend to seek advice before, also on best timing of any of these initiatives.

2.  Starting November 25, 2014 some of the statutory rules on collective dismissals are now applicable to Executives ("Dirigenti").

We recommend to seek advice before starting any collective dismissal procedure, since only some of the provisions are applicable, but relevant sanctions will apply if Executives are not considered for the purpose of collective dismissals and new rules are not respected.

3. The employers' association Confindustria has withdrawn from the collective agreement for executives of the manufacturing sector ("ccnl dirigenti industria") and all related collective agreements. This is presumably related to change nr 2, but has wider effects, since the Executives' protection against unfair termination in the manufacturing sector is (was) provided by this agreement only, while statutory protection is limited to exceptional cases.

 Once more, we recommend to seek advice since the effects of withdrawal are quite complex and partially connected to extension of collective dismissal rules.

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