Categories: Insights · News, Interviews


26 Aug 2018

“Too much protection and rigidity. The three reasons limit business operations” (L’Economia del Corriere della Sera, 27 August 2018 – Vittorio De Luca)

Too much protection and rigid obligations. The Dignity Decree is an insidious and difficult law to apply. In the opinion of attorney Vittorio De Luca, Managing Partner of the Law Firm De Luca & Partners, specialised in labour law, “now more than ever, businesses must pay significant attention to the reasons that legitimate the use of fixed term contract and to the finalisation of the related reason. In fact, they represent the main pitfalls of the new law on fixed term contracts”. Indeed, the decree “does not limit itself to call for the obligation to provide a reason for the use of the fixed term contract, but also requires that the reason be due to ‘temporary, significant and non-programmable increases’ of the ordinary business activity. In the case of a dispute, it is difficult, in the majority of the cases, for businesses to provide proof that all three requirements have been met”, the attorney explains. The obligation to provide the reasons has been introduced for the first time in the Italian legal system in 1962, with the Law 230, in a completely different economic context compared to the current one. Only in 2014 it was finally abrogated. Now, the rules have changed again. It will take 12 to 18 months for the labour law expert to see if the changes introduced will help in promoting open-term employment. However, I am afraid that the transformation of fixed term contracts into open-term contracts hoped for by the government will not occur. If this were to be the case, I hope the law-makers will have a change of heart on the effectiveness of the new regulation”, De Luca adds.
“In addition, the requirement to add a reason may drive companies to enter into three 12-month contracts with three different people, rather than hiring a single person for three years. In this case, the possibilities for a stabilisation of the relationship would be reduced significantly”.
To discourage “the excessive use of fixed term contracts”, as it is in the intentions of the government, it would be better to work on the reduction of the tax and social security contribution burden associated with open-term contracts.

 

Subscribe to our newsletter

Contact

Need information? Write to us and our team of experts will respond as soon as possible.

Fill in the form

More news and insights

3 Aug 2026

Pay Transparency: the first requests from employees are starting to arrive (Il Sole 24 Ore, 3 august 2026 – Vittorio De Luca)

Two months after the decree. Since Legislative Decree 96/2026 came into force on 7 June, according to a flash survey conducted by GIDP, 8% of HR directors have…

30 Jul 2026

Corporate controls and data protection: what balance?

A recent judgment of the Court of Pisa, No. 800 of 13 June 2026, addresses a topic of particular interest for companies: the delicate balance between the protection…

30 Jul 2026

Unfair dismissal and reinstatement: the employee must repay the payment in lieu of notice

With order no. 22187 of 28 June 2026, the Italian Supreme Court addressed the issue of whether payment in lieu of notice paid to an employee must be…

30 Jul 2026

Did you know that… an employee’s natural incapacity does not prevent the time limit for challenging a dismissal from running?

In judgment no. 23486 of 18 July 2026, the Joint Chambers of the Italian Supreme Court (i.e. “Corte di Cassazione”) held that the natural incapacity of an employee…

22 Jul 2026

An employee may not steer clients toward a competitor before resigning (Camera di Commercio Francese in Italia, 22 July 2026 – Vittorio De Luca, Silvia Zulato)

With Order No. 1723 of 26 May 2026, the Italian Supreme Court (Corte di Cassazione) confirmed the liability of an employee who, prior to the termination of his…

20 Jul 2026

Access to Naspi (Top24 Lavoro Ai – Il Sole 24 Ore, 20 July 2026 – Vittorio De Luca e Alessandra Zilla)

Regulatory Framework  The New Social Insurance for Employment (NASpI), introduced by Legislative Decree No. 22 of 4 March 2015, is the primary income support scheme for employees who…