DID YOU KNOW THAT… the Ministry of Labour, with circular no. 9 of 9 October 2023 provided important clarification on the regulations governing fixed-term contracts?

With this circular the Italian Ministry of Labour provided its first guidelines on the most significant new initiatives introduced by Italian Decree-Law no. 48 of 2023, converted into law with amendments by Italian Law no. 85 of 3 July 2023, on fixed-term contracts.

From among these, the most significant clarification provided by the Ministry concerns the provision referred to in Article 24, paragraph 1-ter of Italian Decree-Law no. 48/2023, added when converting it into law, which provides that “For the purpose of calculating the 12-month period provided for in Article 19, paragraph 1, and Article 21, paragraph 1, of [Italian] Legislative Decree no. 81 of 2015 […], only contracts already entered into on the date of entry into force of this decree are taken into account” (Editor’s note: 5 May 2023).

In this regard, the Ministry has clarified that, under above provision, any fixed-term employment relationships between the same parties under contracts entered into before 5 May 2023 do not count towards the 12-month period within which the use of fixed-term employment contracts is permitted without restriction.

From 5 May 2023, employers will therefore be able to use fixed-term employment contracts for an additional period (maximum) of 12 months, regardless of any relationships already existing between the same employer and the same worker under contracts entered into before 5 May 2023, without prejudice to the maximum duration of fixed-term contracts provided for by law or national collective bargaining.

For example, the Ministry has clarified that, if after 5 May 2023, a fixed-term employment contract entered into before that date expires, that contract may be renewed or extended “without restriction” for a further 12 months.

Otherwise, again by way of example, if in the period between 5 May 2023 and 4 July 2023 – the date of entry into force of paragraph 1-ter – the parties have already renewed or extended a fixed-term employment relationship for six months, they may enter into a fixed-term contract for a further period not exceeding six months “without conditions”.

It is therefore the time when the employment contract was entered into – before or after 5 May 2023 – that must be referred to for application of this provision.

In this regard, the Ministry continued, the expression “entered into” used in Article 24, paragraph 1-ter must be considered to refer both to the renewals of previous fixed-term employment contracts and to the extensions of existing contracts.

Other related insights:

• Fixed-term contracts: exceeding of limits can also be assessed when time has expired
• INL: clarifications on the amendments made by the Decreto Sostegni (Support Decree) bis to the rules on reasons for fixed-term contracts