DLP Insights

DO YOU KNOW THAT…The extraordinary wages guarantee fund for discontinuation of business has been reinstated?

Categories: DLP Insights, Do you know that | Tag: CIGS, Urgencies Act

25 Sep 2018

The Ministry of Labour, with press release no. 19 of 17 September 2018, informed all those concerned that the Council of Ministers approved (specifically, on 13 September 2018) a decree enacting measures concerning some of the most urgent matters for the country, including the reinstatement of the extraordinary wages guarantee fund for discontinuation of business (so-called “Urgencies Decree”). This redundancy arrangement has therefore been reintroduced, together with other social support measures that had been repealed by the Jobs Act’s implementing decrees, effective from 1 January 2016. According to the press release, the allowances will be disbursed based agreements between the Ministry of Labour, the Ministry of Economic Development and the interested Regions. These agreements, which may be signed as from the entry into force of the Urgencies Decree and for the years 2019 and 2020, call for extraordinary supplemental wage payments for undertakings going through a critical period, if these have discontinued or are discontinuing their business activities, and a real possibility exists to concretely transfer the undertaking, or even to complete the reindustrialization of the production site. Alternatively – according to the press release – the Regions concerned may activate specific active work policies.

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