Categories: Insights

22 May 2014

FIXED-TERM CONTRACT: NEW SANCTIONS (ITALIA OGGI, MAY 20, 2014, PAGE 38)

Employer can exceed 20% threshold of the working staff through fixed-term hirings, paying an economic sanction. The sanction is equal to: (i) 20% of the compensation, for each month or part of it exceeding 15 days of employment duration, if employees hired over the threshold is 1; (ii) 50% of the compensation, for each month or part of it exceeding 15 days of employment duration, for each employee hired over the threshold, if employees hired over the threshold is more than 1. The mentioned sanction is not applicable to employment contract entered into before March 21, 2014. Within December 31, 2014, employer must comply with 20% legal limit, otherwise new fixed-term employees cannot be hired.
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