JOBS ACT: FIRST TWO IMPLEMENTING DECREES READY TO GO
On March 6 the first two implementing decrees of the Jobs Act approved last Friday 20 February 2015 have been published on the Italian Official Journal (“Gazzetta Ufficiale”) and they are in force starting from March 7. They involve long-term employment contracts with increased protection based on seniority and an overhaul of laws regarding social shock absorbers in the cases of dismissal.
This is just the first step, others will follow in the coming months.
On 20 February the same Council of Ministers approved the first drafts of two additional decrees, one concerning simplification of contract types and a revision of job duties and another regarding the reconciliation of free time and work.
A brief overview of the two approved decrees is provided below.
Decree on employment contract with increased protection based on seniority
Increased protection against wrongful dismissal
Workers who are hired with a long-term contract after this decree becomes effective will only be given a certain economic compensation which increases based on seniority in the case of wrongful dismissal (including layoffs).
In particular: (i) in most cases 2 months salary per year of seniority is envisaged up to a maximum of 24 months and with a minimum of 4; (ii) in the event of violation of procedural rules or disciplinary proceedings, only one month is provided per year on the job, up to a maximum of 12 months and with a minimum of 2; (iii) for companies with up to 15 employees the above compensation is halved and cannot, in any case, exceed 6 months.
Reintegration will continue to be applicable only in the event of discriminatory dismissal or disciplinary dismissal where the disputed material fact is proven not to exist.
Fast arbitration and revocation of the dismissal
During the 60 days when the worker can challenge the dismissal, the employer, in order to avoid a lawsuit, may offer one month salary per year on the job up to a maximum of 18 months with a minimum of 2.
If, however, the dismissal is revoked within fifteen days from the notice of its challenge, the employment is reinstated without interruption, without application of the penalties included in the decree and with the worker’s right to any pay matured.
Decree concerning social shock absorbers
In cases of unemployment starting from the month of May 2015, workers can use a new social shock absorber, which has a duration of 24 months and with the possibility of adding another 6 months of benefits, that is in the process of being tested and only at certain conditions.
A similar, shorter, benefit is envisaged for independent contractors.
We have therefore organized the following Convention to analyse in details the business opportunities that may arise from the new law.
The Convention will include well-known figures from the Confindustria, trade unions and government ministries as speakers,
as per the program.
The purpose of the Convention is to offer various viewpoints on the interpretation of the profound reform in Labour Law in Italy which is currently taking place.
We hope to have you as our guest at the Convention.
