JOBS ACT: THE LAW IS STARTING TO TAKE SHAPE

On 24 December the Government passed the new law on contracts with protection measures increasing with seniority which will be applicable to newly hired employees as of 2015. The main innovations, epoch-making for Italian labour law, include a limitation on reinstatement in alleged cases of unlawful dismissal, replaced with economic compensation ranging from a minimum of 2 to a maximum of 24 months’ salary, based on the reason for the dismissal, company size and employee’s seniority.

The parliamentary commissions must now express their opinion, which will be submitted to the council of ministers before being sent to the President of the Republic, for it to be issued. This should all take place within six months from the 16 December 2014 bill.

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