The ‘Employment Decree’ (Italian Decree Law No. 48/2023) was converted into Italian Law No. 85 of 3 July 2023, which introduced important innovations for employers.

Below is an analysis of the main changes introduced in the field of: (i) forward contracts; (ii) staff-leasing contracts; (iii) the right to ‘remote’ working.

As regards fixed-term contracts, the converting law confirms the new grounds that employers shall be required to use in the event that the duration of a fixed-term contract exceeds 12 months (also as a result of extensions or renewals). The new grounds concern:

  • the cases provided for by the national collective bargaining agreements referred to in Article 51, Italian Legislative Decree No. 81/2015;
  • failing any provision in the national collective bargaining agreement, any technical, organisational or production requirements identified by the parties;
  • reasons for replacement.

The converting law also provides for more flexibility regarding renewals. In particular, without prejudice to the maximum time limit for fixed-term contracts (i.e., 24 months), a fixed-term contract can be renewed ‘freely’ within the first 12 months of the relationship’s duration (thus, de facto equating the rules on renewals with those on extensions).

Lastly, it is clarified that only contracts entered into after 5 May 2023 are to be taken into account for the purpose of calculating the twelve months.

Other new features concern the regulation of open-ended staff leasing, for which the converting law of the ‘Employment Decree’ provides for workers hired by the staff-leasing agency with apprenticeship contracts and ‘disadvantaged’ jobs to be excluded from the 20% quantitative limit.

Finally, on the subject of ‘remote working’, the converting law further extends the right to ‘remote working’ for certain categories of workers and, in particular:

  • until 30 September 2023 for vulnerable workers suffering from illnesses identified by the Decree of the Italian Ministry of Health of 4 February 2022;
  • until 31 December 2023 for workers who are at greater risk of Covid-19 infection due to age or immunodeficiency resulting from cancer-related illnesses or life-saving therapies or, in any case, dual diagnosis;
  • until 31 December 2023 for workers who are parents of children of under 14 years of age, provided that the remote working is compatible with the nature of the work and that the other parent does not receive social security benefits or is not working.

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Decreto lavoro: disclosure obligations under the Transparency Decree made easier (Newsletter Norme & Tributi n. 169 Camera di Commercio Italo-Germanica – Vittorio De Luca, Luca Cairoli)

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

Italian Law of 24 February 2023, No 14 converted into law, with some modifications, Italian Decree-law of 29 December 2022, No 198, containing ‘urgent provisions regarding legislative deadlines. Extension of deadlines for the exercise of legislative powers’ (the so-called Milleproroghe Decree) published in the Italian Official Gazette No 49 of 27 February 2023:

  • extended the right to remote working to so-called ‘vulnerable’ workers; and
  • reinstated the same right to working parents of children under 14.

Public and private employees are considered ‘vulnerable’ if they are affected by sicknesses and conditions identified by the decree of the Minister of Health referred to in Article 17, paragraph 2, of Italian Decree-law of 24 December 2021, No 221, converted into law, with amendments, by Italian Law of 18 February 2022, No 11. This right must be guaranteed including, if necessary, through assignment to a different job without any reduction of the salary and without prejudice to the application of any more favourable provisions set out in the relevant national collective bargaining agreement (contratto collettivo nazionale di lavoro, ‘CCNL’).

Finally, with the above-mentioned conversion Law, the right to remote working is renewed for parents who are private sector employees with at least one child under the age of 14, a protection that had last been extended until 31 December 2022.

In the latter case, said right to remote working arises where the following conditions are met:

  • there is no other parent in the family who is a beneficiary of income support benefits relating to suspension or cessation of work or who is not working;
  • remote work is compatible with the work carried out.

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On 29 December 2022, Italian Law No 197/2022, entitled ‘State budget for the financial year 2023 and multi-year budget for the three-year period 2023-2025’ (‘Bilancio di previsione dello Stato per l’anno finanziario 2023 e bilancio pluriennale per il triennio 2023-2025’ – hereinafter ‘Budget Law’) was published in the Italian Official Gazette.

The above-mentioned legislation, among the various measures, introduced some contribution exemptions for the year 2023. In particular, employers who in 2023 hire workers under the age of 36 under a permanent employment contract will be able to benefit from total exemption from social security contributions up to a maximum amount of EUR 8,000 for a maximum period of 36 months. This exemption is also granted for fixed-term contracts which are converted into permanent contracts in the same year. The relief in question is granted (and this is new) also in the case of employment of persons who receive ‘citizenship income’ (‘reddito di cittadinanza’).

In addition, the above-mentioned contribution benefit is guaranteed if the permanent contract (or the contract that is converted into a permanent contract) concerns female workers who, regardless of age, have been (i) unemployed for at least 24 months or (ii) unemployed for at least six months if they are resident in ‘disadvantaged’ (‘svantaggiate’) areas.

The reliefs introduced do not only concern social security contributions but also those relating to tax. On this point, in fact, the Budget Law reduces the tax rate on ‘productivity bonuses’ (‘premi di produttività’) which goes from 10% to 5% up to a maximum amount of EUR 3,000. The tax relief therefore applies to performance bonuses of variable amounts whose payment is linked to increases in productivity, profitability, quality, efficiency and innovation, as defined in the context of a corporate or territorial collective agreement. This relief applies to those who in the previous year have earned employee income not exceeding EUR 80,000.

Finally, the Budget Law extended until 31 March 2023 the right for ‘vulnerable’ (‘fragili’) workers to work through remote working. For the other categories of workers, on the other hand, remote working is permitted only after signing an individual agreement between the employer and the employee under Articles 18 et seq. of Italian Law No 81 of 22 May 2017.

Law no. 142, of 21 September 2022,  converting decree law no. 115 of 9 August 2022, (“Aiuti-bis” decree) on “Urgent measures on energy, water emergency, social and industrial policies” was published in the Official Gazette no. 221 of 21 September 2022.

The law introduced important changes on remote working. The use of simplified remote working, i.e., without individual agreements, was extended until next 31 December.

The right to perform remote working for parents with children up to 14 years of age and vulnerable workers was extended until the end of the year.

Other labour-related provisions included: (i) the value increase for goods and services that do not form employment income under Art. 51, paragraph 3, TUIR, reached € 600 and was confirmed for 2022. Fringe benefits include the sums paid or reimbursed to employees for the payment of domestic utilities for the integrated water service, electricity and natural gas; (ii) the increase by 1.2 percentage points, for the period from 1 July 2022 to 31 December 2022, the 0.8% exemption on the employee’s share of social security contributions for disability, old age and survivors, introduced by Art. 1, paragraph 121, of the Budget Law 2022 (Law no. 234/2021); (iii) the extension of the number of recipients of the € 200 one-off allowance, introduced by Articles 31 and 32, Decree Law no. 50/2022.

Other related insights:

Economy asked some questions to De Luca & Partners Managing Partner Vittorio De Luca about remote working.

From today 1 September 2022,   remote working, cannot be carried out without a precise individual agreement with the worker. Economy asked some questions to De Luca & Partners Managing Partner Vittorio De Luca.

WHEN WILL EMPLOYERS WITH REMOTE WORKERS NEED TO HAVE THE REQUIRED DOCUMENTATION OR INDIVIDUAL AGREEMENTS?

It has been impossible since 31 August 2022 to use remote working without a valid individual agreement. But from 1 September 2022, remote working will be permitted only by entering into specific worker and employee agreements, under the “ordinary” regulations of Articles 18 et seq. of Law 81/2017.

The simplified reporting procedure to the Ministry of Labour becomes standard.

Article 41-bis of Decree-Law 73/2022, converted by Law 122/2022, states that, as of 1 September, employers can continue to report remote workers’ data electronically to the Ministry of Labour and Social Policies using the appropriate portal without attaching the agreements signed with their employees, as originally provided for by Law 81/2017.

The Ministry of Labour in its note released last Friday stated that companies must report within five days from the signing of the individual agreement. However, when the new methods are first applied, the reporting obligation can be fulfilled by 1 November 2022.

WHAT ARE THE CONSEQUENCES FOR EMPLOYERS IF A REMOTE WORKER HAS AN ACCIDENT BUT HAS NOT SIGNED A COMPLIANT AGREEMENT?

Without prejudice to the mandatory agreement between employer and worker, applicable legislation allows INAIL insurance coverage for accidents occurring during the performance of remote working or for “in progress accidents if caused by a risk connected with work performance.”  The employer must adopt the necessary measures to ensure the protection and performance of remote working in safe conditions. The legislation requires the employer to provide the worker with written information on any risks associated with the service performance, at least annually. This must be accompanied by remote training.

Carrying out work outside the company premises, or the usual place of work, creates the conditions for different and additional risks to the health and safety of the employee who must be adequately informed and trained. The worker must cooperate with the preventive measures prepared by the employer to deal with these risks. If the worker receives inadequate training and suffers an accident at work because of this deficiency, the employer is liable for tort, civil compensation, and is criminal liable in more serious cases (e.g., negligent injury or manslaughter),  

Without prejudice to what is provided for insurance obligations, as of 1 September 2022, remote working without the necessary individual agreement exposes employers to the risks of violating remote working regulations

WILL THE NEW REGULATIONS AFFECT WELFARE MEASURES SUCH AS MEAL VOUCHERS?

The new regulations do not include any welfare measures. During the pandemic there was a debate over it being legitimate to revoke meal vouchers from remote workers. Article 20, paragraph 1) of Law 81/2017 establishes that a remote worker is entitled to a payment and contract terms that are not less than that applied to workers who perform the same tasks on premises.

However, case law established that meal vouchers cannot be qualified as “ordinary” remuneration. Their nature must be identified as occasional welfare benefits linked to the employment relationship, and not strictly part of remuneration (Court of Cassation, Order no. 16135 of 28 July 2020). In principle, it would be legitimate for the employer to grant meal vouchers only to on-site workers, excluding remote workers. It would be necessary to check what is stated in the employment contract, to avoid breaching commitments that the employer made when hiring.

ARE YOUR CLIENT COMPANIES PREPARED FOR THIS TRANSITION?

We believe that a significant number of companies expected a further extension. August 2022 is usually an extremely active month for the legislator. For example, the Transparency Decree came into force in August, and this places pressure on company human resources departments. Then there is the new parental leave (Decree).

WERE INDIVIDUAL AGREEMENTS ALREADY IN PLACE OR WERE THEY RECENTLY DEFINED? 

As we have been saying since March 2020, the individual agreement is an opportunity rather than an obligation. When workers work remotely, it is necessary to regulate performance to avoid losing control. A remote work project involves different skills and offices within the company (HR for work organisation and management, IT for the IT structure and company equipment necessary to carry out work outside the office, legal expertise in the field of privacy compliance, H&S, etc.).

Surely, the new obligations that come into force on 1 September cannot be implemented in time if companies did not start weeks ago Organisations which started making changes, will only need to worry about adapting remote working policies and individual agreements to meet evolving needs and any critical issues. 

ARE THERE PRODUCTION SECTORS THAT ARE MORE ADVANCED THAN OTHERS IN REMOTE WORKING?

We worked with companies from the many different sectors (food and beverage, aviation, companies operating in the production of furniture and interior design and the energy sector). We cannot say that there are production sectors that are more advanced than others, but there are companies (albeit from different sectors) that have implemented structured working models.