Stability Law: The Government has passed the Draft law

On 15 October 2015 the Council of Ministers approved the draft law concerning the financial maneuver expected for the year 2016 (so-called stability law). The text effects employment policy (i) confirming tax breaks for new hirings with open end contract, even if the benefit will only be for two years, with annual ceiling halved, which thus drops from the current 8,060 euro to 3,250 euro; (ii) providing incentives for a generational turnover within private sector companies with a possibility offered to workers over 63, to opt for part-time work with full contribution in the last three years of the contract; (iii) including detaxation of bonuses and zeroing out of sums paid for company welfare services agreed upon between the parties and, lastly, (iv) introducing new protections and tax breaks for independent contractors. The new legislation of the Stability Law is in line with the reform program the Renzi government has been following to encourage an economic recovery in Italy and boost employment.