DLP Insights

The Government’s first Decree Law on employment contracts is on its way

Categories: DLP Insights, Legislation

26 Jun 2018

The first decree law on employment contracts is already ready on the table of the Council of Ministers, that is the so-called Dignity Decree, which could be approved in the month of July. Amongst the main new developments, one may find the reform of fixed-term contracts, aimed at fostering the entering into of indefinite employment contracts and at fighting against precariousness. In particular, there is a reintroduction of the obligation, removed by decree law No. 34/2014 (the so-called Poletti decree), concerning the grounds justifying the fixing of a term to the contract. In other words, we would be returning to having to mention the underlying grounds in the fixed-term agreement. Furthermore, the extensions should be reduced to a maximum of 4. To date, the maximum duration of fixed-term contracts is of 36 months and the latter may be extended up to a maximum of 5 times, regardless of the number of renewals. In any event, a temporary period should be foreseen, in order to avoid “shaking the company’s business and the contracts in force”. The Government is also working on a reform of the job centres and on intervening in active policies.

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