DLP Insights

Legislative reform on social safety nets during employment

Categories: DLP Insights, Legislation | Tag: Industrial relations, Social safety nets

12 Apr 2022

In circular no. 6/2022, the Ministry of Labour, provided some guidelines on the changes made by Decree Law. no.  4 of 27 January 2022 ( Decreto Sostegni ter [Support Decree ter]), to access wage subsidies for workers during the employment relationship.

The Ministry clarified that companies applying for the redundancy fund for business termination who run out of funding by 2022 can sign a transition agreement to access another 12 months of redundancy fund. During this period, the company must manage the remaining redundancies with active policy actions.

The Ministry discussed the possibility introduced by the Budget Law 2022, for companies that can access the Extraordinary Redundancy Fund (CIGS), of using the “reorganisation” reason to carry out “transition processes.” According to the legislation, the company must prepare a programme which, depending on the situation, can be shared with the Regions or the Ministry of Economic Development (Mise). This programme must outline any investments (without quantitative constraints) in place during the transition process and detail the technological and digital upgrading or ecological and energy renewal and sustainability or extraordinary safety measures.

The Ministry clarified that corporate reorganisation plans must be accompanied by complex measures to deal with inefficiencies in the management or production structure and actions aimed at digital, technological, ecological and energy company restructuring and transitions.

The Ministry stated that the transition agreement favours employment restructuring and is intended for those workers who cannot be reallocated and are at risk of redundancy after a company reorganisation or reorganisation programme.

The company applying for the measure cannot access further periods of extraordinary redundancy fund within the five-year period, which is not yet ended. To obtain the income benefit, the company must (i) have consulted with the trade union, specifying the workers at risk of redundancy for whom the measure is intended and ii) define with the Region the training and re-training actions for the re-employment and self-employment of workers. The personnel covered by the agreement will access a “collective reallocation” process, which will be clarified by Anpal.

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