Insights

For the purposes of identification of threshold for hiring with fixed-term contracts, in the case of companies that started the business activity during the year (start-up), the number of open-ended term employees in force at the time of the first employee hired with fixed-term contract has to be taken into account.

INPS, with note no. 100 of September 2, 2014, provided for the instructions for payment to the new residual solidarity Fund (introduced through DM 79141/2014). The payments are due by companies – to which redundancy fund is not applicable – with more than 15 employees.

The reform of the fixed-term contract by the Law Decree 34/2014 requires the compliance with the threshold provided by the collective agreement. In lack of collective provisions, the threshold is equal to 20% of the employees hired with open ended contract, with provision of a transient period expiring on December 31. Such period is granted to employers in order to comply with the said limit in 2014.

The Labour Ministry, with decree n. 83117/14, has established the new fund of 400 million for the exceptional redundancy fund and mobility treatments.

INPS, with circular no. 98 of August 6, 2014, stated that the applications for benefits provided for the recruitment of unemployed that took place in 2012, should be submitted by September 30, 2014.