JOBS ACT: THE LABOUR LAW REFORM BECOMES LAW

The labour reform has become law and implementation decrees from the Government are expected which should be approved starting from mid December.

These are the main new features:



Dismissals



The so-called tutela reale (real guarantees) has been permanently eliminated.

Therefore, the possibility of reinstatement in economic dismissals, is no longer applicable. An economic compensation has taken its place, the amount shall be defined in an increasing manner, based on seniority with the company.

Real guarantees will continue to be applicable only for disciplinary type dismissals, but only for "specific cases of unjustified disciplinary dismissal" and with the inclusion of "certain deadlines for challenging the dismissal”.

Thus the mild and controversial Fornero reform of 2012 has been eliminated, but only in reference to new hirings.



Redundancy fund



The Redundancy fund will only be granted to companies with a reasonable prospective of resuming activity within the applicable time period.

However, the timeframe for approval of the implementation decree is not expected to be short.

In addition:

– the use of wage integration will be subordinate to complete use of all contractual possibilities to reduce working hours;

– the limits to the applicable time period will be reviewed;

– mechanisms will be introduced to provide incentives for job rotation;

– ordinary contribution rates will be modified to be calculated partly based on the actual use of the instrument.



Worker statute



The bill dictates that the Government reform the 1970 Worker statute.

Specifically, the Executive branch is asked to review the limitations to remote control of workers, as well as the right for employers to change worker jobs (so-called ius variandi).



Other significant innovations



The bill also includes:

– open end contract as the common form of employment and the Government is asked to make it “more advantageous compared to other types of contract";

– the “abandoning” of long-term consultant contracts (Italian collaborazioni coordinate e continuative);

– revision of unemployment benefits;

– reform of services for work and expansion of employment policies;

– simplification of contractual regulations and types;

– rationalisation of labour related procedures and requirements with the declared objective to “drastically reduce the number of documents of an administrative nature”;

– simplification of laws affected by significant interpretative conflicts;

– updating of maternity protection measures. 

Aside from the controversies over the elimination of real guarantees, some points of the reform – for example the elimination of interpretative conflicts and simplification of employer requirements – we feel represent measures from an enlightened government which companies, workers and sector operators have long been waiting to see in action.