FIXED-TERM CONTRACTS: UNTIL DECEMBER 31 THE TRANSIENT PERIOD FOR COMPLYING WITH THE UTILIZATION THRESHOLDS (IL SOLE 24 ORE, AUGUST 25, 2014, PAGE 23)

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. It must be considered that in some cases the stabilization of fixed-term contracts imply important contribution benefits for the employers, such as: (i) a benefit equal to one third of gross monthly salary taxable for social security purposes (for a maximum of EUR 650) for a period of 12 months, in case of transformations into open ended contracts entered into with “disadvantaged” persons aged between 18 and 29 years; (ii) the extension of 50% reduction of the social security contributions paid by the employer until the eighteenth month from the date of employment of women without a regular paid employment for at least 24 months; (iii) the extension for a further 12 months of benefits for fixed-term hiring of the so called workers’ mobility (set by article 8, paragraph 2, Law 223/1991).