The “Decreto Agosto” published in the Official Gazette

Legislative Decree n. 104/2020 (so-called “Decreto Agosto”) has just been published in the Official Gazette n. 203 of August 14, 2020.

The most significant innovations concerning the employment profiles introduced by Legislative Decree n. 104/2020 are the following:

A. Social shock absorbers

1. In order to grant relief to all employers, a further eighteen (9+9) weeks of ordinary redundancy fund, (Cassa Integrazione) has been introduced, which can be used in the period from 13 July 2020 to 31 December 2020.
2. There is no cost for the first 9 weeks period, whether a compulsory contribution is due for the additional 9 weeks for companies that did not suffer a substantial loss of turnover in 2020.

B. Social security contributions exemption

1. Until next 31 December, special social security contributions exemption is granted to employers that: either (i) do not apply for the extension of the ordinary redundancy fund (for a maximum period of 4 months); or (ii) hire employees under an open-ended contract, in the event of an increase in net employment (for a maximum period of 6 months since the hiring).

C. Extensions and renewals of fixed-term contracts

• Until December 2020, employers are entitled to extend or renew fixed-term contracts even in absence of the grounds prescribed by Article 19, paragraph 1, of Legislative Decree No. 81/2015.

D. Provisions in matter of dismissal

• The prohibition of collective and individual dismissals for justified objective reasons has been extended until all 18 weeks of Cassa Integrazione will have been enjoyed.

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The partners and associates of De Luca & Partners law firm remain 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.