Italian Decree-Law no. 19 of 2 March 2024 (‘DL PNRR-bis’), in force from that date, introduced important changes to the employment sector, particularly regarding contracting-out and employment agency entities.
The most important changes are summarised below:
Contracting-out thresholds: contractors and subcontractors must pay personnel employed under the contract overall remuneration that is not lower than that provided for by the national and local collective bargaining agreements that predominantly apply in the area and in the sector related to the contracted-out activities.
Joint and several liability under the contract: joint and several compensation liability for the user is extended and extends to unlawful agency work, contracting-out and secondments.
Undeclared work: the fines for employers who employ undeclared workers have increased by 30%.
Sanctions for unlawful contracting-out and/or agency: introduction of a criminal sanction of imprisonment for up to one month or a fine of EUR 60 in the event of an irregular contract, or for each employed worker and for each day of employment. In the event of a ‘recidivism’ (i.e. if in the previous three years the employer has already been the recipient of criminal sanctions for the same offences) the fine is increased to EUR 72.
Tightening of sanctions for fraud: if the employer’s evasion of legal regulations or collective bargaining agreements is intentional, the sanction of imprisonment up to three months or a fine of EUR 100 is applied for each employed worker and for each day of work.
Licences for construction sites: from 1 October 2024, businesses and self-employed workers operating on temporary or mobile construction sites will be required to have a “licence”. The applicant must satisfy the following requirements: registration with the Chamber of commerce, industry and crafts; the training obligations provided for in Article 37 of Italian Legislative Decree no. 81/2008 applicable to employers, executives, managers and workers; hold a valid Certificate of Contributions Compliance (Documento Unico di Regolarità Contributiva, ‘DURC’); hold a Risk Assessment Document; hold a Certificate of Tax Compliance.
Agricultural businesses and seasonal work: tightening of sanctions so that if the limit of 45 days per year of “casual and temporary employment agricultural work” is exceeded, the employment contract is transformed into a full-time contract.
Compliance list: if, as a result of inspections relating to employment and social legislation, no breaches or irregularities emerge, the Italian National Labour Inspectorate (Ispettorato Nazionale del Lavoro, ‘INL’), issues a certificate and register the company in an on-line list called the “INL compliance list”. For 12 months from the registration date employers will not be subject to further checks in the matters subject to the investigations, while in the event of breaches or irregularities established through evidence subsequently obtained by supervisory bodies, INL will remove the employer from the list.
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