Transparency Decree: new obligations for the employer

Legislative Decree No. 104 of June 27, 2022 implementing EU Directive No. 2019/1152 on transparent and predictable working conditions in the territory of the European Union was published in the Official Gazette on July 29, 2022.

The decree adds additional information obligations to those hitherto provided for by Legislative Decree No. 152/1997, providing for an extension of the mandatory information to be provided to the employee at the time of recruitment, of the range of recipients of information obligations, as well as specific sanctions in case of delay or non-compliance.

Specifically, the employer will have to include in the employment contract information regarding: the training provided, vacation time, paid leave, notice periods in the event of dismissal or resignation and the relevant procedure, the scheduling of normal working hours, the collective agreement, including the company agreement, applied to the employment relationship, with the indication of the parties who signed it, the entities and institutions that receive the social security and insurance contributions due from the employer, and any form of social security protection provided by the employer.

These disclosure requirements will apply with respect to workers hired after August 12, 2022, as well as, if requested by the worker, with respect to relationships already in force prior to that date.

The new provisions, apply, where applicable, also in the context of: supply contracts, occasional service contracts, domestic work relationships, subject to specific exceptions, and to maritime and fishing work relationships, subject to the special regulations in force on the matter.

In addition to the above, the decree then provides for additional and even more detailed information requirements for employers who use automated monitoring and decision-making systems, imposing the obligation to inform workers about the use of such systems intended to provide relevant indications for the purposes of recruitment or assignment, management or termination of the employment relationship, assignment of tasks or duties, as well as indications affecting the supervision, evaluation, performance and fulfillment of workers’ contractual obligations.

Considering the complexity of the new provision, the National Labor Inspectorate and the Ministry of Labor and Social Policy issued two circulars with the aim of clarifying some interpretative doubts raised regarding the application of the new provision.

In the first circular dated August 10, 2022, the Inspectorate clarified that the detailed regulations regarding the institutions under the Transparency Decree may be communicated to the worker through reference to the applied collective agreement or other company documents, if the same are simultaneously delivered to the worker or made available in accordance with company practice.

Lastly, in Circular No. 19 of September 20, 2022, the Ministry of Labor clarified that for the purpose of fulfilling the information obligation, the abstract reference to legal regulations is not sufficient. In fact, it is necessary to make clear to the worker how, in concrete, the legal provisions in the employment relationship act, including by referring to the collective bargaining agreement applicable to the employment contract. Moreover, with this circular, the Ministry of Labor has outlined the range of institutes to be included in the list of those indicated by the legislator in a rather general way.