DLP Insights

Union Agreement: an exception to ban on dismissals (Newsletter Norme & Tributi n. 146 Camera di Commercio Italo-Germanica – Vittorio De Luca, Elena Cannone)

Categories: DLP Insights, Publications | Tag: union agreement, ban on dismissals

13 Nov 2020

The current emergency due to the spread of Covid-19 led the Italian Government to ban dismissals for objective justified reason and suspend layoff proceedings. Initially introduced with the Cure Italy Decree, it was later extended with additional Government conditions. The most recent, art. 12, par. 11, of Decree Law 137/2020 (“Ristori Decree”) extended it until 31 January 2021. However, the Government added exceptions to the ban, including the reduction of personnel under company collective contracts containing a layoff incentive for subscribing employees. The union counterparties of these agreements are those that are comparatively more representative at national level. The concept of collective contract was introduced by art. 51 of Legislative Decree 81/2015 stating that such contracts are “national, territorial or company contracts signed by unions comparatively more representative at national level”. However, unlike art. 51, these agreements cannot be signed at amalgamated or company Unions for sectors not covered by interconfederal agreements. These workers will receive involuntary unemployment benefits (NASPI).

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