De Luca & Partners

Support Decree Bis has become law

Published in the Official Gazette no. 176 of 24 July 2021, Law no. 106 of 23 July 2021, (hereafter the “Conversion Law“), converting Decree-Law no. 73 of 25 May 2021containing “urgent measures related to the COVID-19 emergency, for businesses, work, young people, health and regional services” Support Decree-bis). The measure entered into force the day after its publication in the Gazette, i.e. on 25 July.

Below are the main measures provided for by the “Support Decree-bis” in the employment field, some of which were introduced during its conversion.

Fixed-term and staff leasing contracts

Until 30 September 2022, it is possible to:

Dismissal prohibition

The conversion law incorporates the provisions of the recent Decree-Law no. 99/2021, and repeals the prohibition of individual dismissals for financial reasons and collective dismissals, merging it into the “Support Decree-bis.”

The prohibition applies:

Exceptions to the prohibition are confirmed for dismissals motivated by a definitive cessation of business, liquidation, bankruptcy, or collective company agreement on redundancies.

Wage subsidies

In addition to confirming the measures provided for by theSupport Decree-bis” and partially mentioned above, the Conversion Law re-proposes the measures provided for by the repealed Decree-Law no. 99/2021 to ensure continuity of the effects produced by its provisions, and particularly:

Expansion contract

The original provision of the Support Decree-bis under which companies with less than 100 employees can sign an expansion contract was confirmed. This tool allows retraining of workers using the redundancy fund and access to favourable early retirement plans for those who are no more than 60 months from age or early retirement.

Re-employment contract

The introduction of the re-employment contract, i.e. the open-ended employment contract aimed at encouraging the integration of unemployed workers into the labour market, was confirmed. An employment condition to be hired under a re-employment contract is for an individual project to last six months and ensure the worker’s professional skills meet the new work situation. This is subject to the worker’s consent.

At the end of that period, the parties may terminate the contract by giving notice from the same date. If neither party terminates the contract, the relationship continues as an ordinary open-ended employment relationship.

The re-employment contract allows exemption from social security contributions for employers who hire unemployed workers from 1 July to 31 October 2021. In the six months before recruitment, the exemption is granted to employers who have not made individual dismissals for objective justified reasons.

Other related insights:

Exit mobile version