Decree Law no. 34 of May 19, 2020 (the so-called “Recovery Decree”), entitled “Urgent measures in the field of health, support for work and the economy, as well as social policies related to the epidemiological emergency by COVID-19”, has been published.
Below is a summary of the main innovations related to the work profiles introduced by the Decree.
A. Amendments concerning (i) ordinary lay-off procedure (‘CIGO’) and ordinary allowance (‘FIS’), (ii) extraordinary lay-off procedure (‘CIGS’) and (iii) temporary lay-off procedure in derogation (‘CIGD’):
- The following main amendments and integrations are provided for in the ordinary lay-off procedure (“CIGO”) and ordinary allowance (“FIS”) with “COVID-19 emergency” as per art. 19 of the “Cura Italia Decree”:
- The ordinary lay-off procedure and the ordinary allowance remain available for a maximum of nine weeks for the periods from February 23 to August 31, 2020, with the possibility, however, of being increased by a further five weeks in the same period for employers who have fully exhausted the period previously granted and, therefore, all nine weeks. A possible additional period of up to four weeks of treatment from September 1 to October 31, 2020 is also recognised.
- the obligation of information, consultation and joint examination with the trade unions to be carried out, also electronically, within three days following the day on which the communication was sent.
- the workers involved in the two social shock absorbers in question must be employed by the employers requesting the benefit on March 25, 2020 and no longer on February 23, 2020.
2. With regard to the ordinary lay-off procedure (“CIGO”) for companies that are already in the extraordinary lay-off procedure (“CIGS”), the following amendment is provided:
- The ordinary wage integration treatment may be requested for a maximum duration of nine weeks for the periods from February 23 to August 31, 2020, increased by a further five weeks in the same period for employers who have fully exhausted all the nine weeks previously granted. Also in this case a possible additional period of a maximum of four weeks of treatment from 1 September to October 31, 2020 is recognized.
3. With reference to the “Cassa Integrazione Guadagni in deroga” (“CIGD”), the following main amendments and integrations are provided for:
- The period of wage integration in derogation may be granted for a maximum duration of nine weeks for the periods from 23 February to 31 August 2020, increased by a further five weeks in the same period only for employers to whom the previous nine-week period has already been fully authorised. Any additional period of up to four weeks of treatment for the periods from September 1 to October 31, 2020 is also recognized.
- With regard to the procedure to be followed in order to apply for CIGD treatment, the agreement with the trade unions is still not required for employers who employ up to 5 employees, while the agreement is required for employers who have shut down their activities in compliance with the emergency measures issued to deal with the epidemiological emergency.
B. Amendments concerning (i) specific leave and baby-sitting bonuses, (ii) paid leave ex. Art. 33, L. 104/1992 and (iii) dismissals for objective reasons.
- Specific leave:
- The specific leave for parents working in the private sector, with children not older than 12 years of age, is extended up to 30 days, to July 31, 2020;
2. Paid leave:
- The number of days of paid leave covered by figurative contributions is increased by a further 12 days to be available in May and June 2020.
3. Dismissals for justified objective reasons:
- The period of prohibition to start collective redundancy procedures and suspension of procedures established after February 23, 2020 is extended until August 17, 2020;
- the prohibition of dismissal for objective reasons under Article 3 of Law 604/66 is also extended therefore until August 17, 2020;
- all ongoing procedures for dismissal for objective reasons under Article 7 of Law 604/66 (procedures for objective reasons initiated before the ITL) are suspended for the same period;
- finally, the employer who has terminated the employment contract for objective reasons in the period between February 23, 2020 and March17, 2020, is allowed to revoke the termination at any time, with the consequent re-establishment of the employment relationship without interruption. This shall be without charge or penalty to the employer, provided that at the same time of the withdrawal the employer makes a request for the salary supplement from the date on which the dismissal takes effect.
C. New measures concerning (i) rescheduling of working time (ii) right to smart working (iii) extension and renewal of fixed-term contracts
- With regard to the rescheduling of working hours:
- for the year 2020, the collective labour agreements signed at company or territorial level by employers’ and workers’ associations that are comparatively more representative at national level, or by their trade union representatives operating in the company in accordance with the regulations and inter-confederal agreements in force, may implement specific agreements for the rescheduling of working time for new organisational and production needs of the company;
- part of the working hours may be aimed at training courses whose charges for training hours, including the related social security and welfare contributions, shall be borne by a specific Fund;
- the criteria and methods for the application of the measure and the use of resources will be identified by a decree issued by the Minister of Labour and Social Policy in accordance with the Minister of the Economy and Finance, to be issued within 60 days following the Decree’s effective date.
2. Workers in the private sector with at least one child under the age of 14 – until the termination of the epidemiological emergency by COVID-19 have the right to perform remote work, even in the absence of individual agreements:
- the right will be exercised provided that the remote work is consistent with the characteristics of the service;
- the performance of remote work can also be carried out through IT tools that are at the employee’s disposal if they are not provided by the employer;
3. With regard to fixed-term contracts, employers have the possibility to renew or extend existing fixed-term employment contracts until August 30, 2020, even in the absence of one of the reasons provided for in the so-called Dignity Decree.
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The law firm De Luca & Partners remains available to provide any information necessary to deal with the emergency, as well as to develop the best strategies to minimize its impact on business productivity.
