DID YOU KNOW THAT… On 5 May 2023 the so-called ‘Employment Decree’ came into force?

On 4 May 2023, Italian Decree Law No 48/2023 (the ‘Employment Decree’ (‘Decreto Lavoro’)) containing ‘Urgent measures for social inclusion and access to the workplace’ was published in the Italian Official Gazette.

The Decree introduced important initiatives on employment law, social security and social assistance, with effect from 5 May 2023.

One of the main initiatives in the employment law field are changes to the permitted reasons for fixed-term employment contracts, with a strengthening of the role of collective bargaining.

The permitted reasons justifying a fixed-term contract of between 12 and 24 months, the extension for more than 12 months, or the renewal of a fixed-term contract are exclusively those provided for by the collective agreements concluded by the associations comparatively more representative at national level, or in the absence of such provisions and until 30 April 2024, the individual parties, for technical, organisational and production needs.

The Decree also simplifies the employer’s information obligations introduced by the ‘Transparency Decree’.

In contrast to the past, some of the information that the employer was required to provide in the employment contract or in a specific information notice can now be provided to employees simply by referring to the relevant legislation or collective bargaining agreement,  which may also be the company’s bargaining agreement, applied to the employment relationship. This information relates to, for example, probationary period duration, training, paid holidays and leave, notice of dismissal and resignation, salary components, working hours, overtime, social security and insurance institutions.

To simplify the obligation, and to ensure uniformity in the employer’s communications, the employer will be required to deliver or make available to staff, including through publication on the website, national, regional and company collective bargaining agreements, as well as any company regulations applicable to the employment relationship. 

The employer’s information obligations on the use of automated decision-making and monitoring systems have also been reduced, thus further simplifying these information obligations.

Further measures introduced by the Decree concern:

• amendment to the health and safety at work regulations, with particular reference to the appointment obligations and the obligations to be fulfilled by the occupational doctor for the issue of the fitness for work certificate, as well as the introduction of further employer training obligations in the event of use of equipment that requires special knowledge;
• the possibility for companies with more than 1,000 employees that have signed group expansion contracts by 31 December 2022 and that are not yet concluded, to enter into a supplementary agreement at ministerial level until 31 December 2023;
• the possibility of requesting a further Extraordinary Wage Guarantee Fund (Cassa Integrazione Guadagni Straordinaria, ‘CIGS’) period, until 31 December 2023, by way of derogation from the maximum duration limits, for companies that, in 2022, have activated a reorganisation and restructuring plan and that, due to the prolonged unavailability of company premises, have not been able to complete them.

The Decree also provided a series of measures relating to social security and assistance, aimed above all at supporting youth employment, promoting the permanent integration into the labour market of beneficiaries of the Inclusion Allowance and reducing the ‘tax wedge’ (cuneo fiscale).

Other related insights:
Transparency Decree: new obligations for the employer