DLP Insights

DO YOU KNOW THAT… The new regulations governing fixed-term contracts will enter into full effect on 1 November?

Categories: DLP Insights, Do you know that | Tag: Decreto Dignità, Contratti a tempo determinato

29 Oct 2018

The transition period ended on 31 October 2018. It allowed for alignment to the new regulations governing fixed-term contracts, as introduced with Decree Law 197/2018, (the “Dignity Decree”), which was then converted into Law 96/2018. In particular, the Dignity Decree had provided that the new provisions would be applicable to renewals and extensions after 31 October 2018. Essentially, the new provisions will enter into full force on 1 November 2018. This means that a contract may be without specified reason in its initial 12 months, but thereafter specific reasons must be indicated, as failure to do so automatically transforms the contract into an open term one. The contract (i) may be freely extended for the first 12 months but thereafter, extensions must be supported by specific reasons and (ii) can only be renewed in the presence of specific reasons, regardless of its duration. Violation of these rules will also automatically transform the contract into an open term one. The contract’s duration cannot exceed 24 months (previously the limit was 36 months) and it can be extended up to 4 times (as compared to 5 times previously).

 

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