Official Gazette No. 186 dated 11 August 2018 has published the conversion law (Law No. 96) of Law Decree 87 (the so called Dignity Decree), entered into force on 14 July. Major changes have been applied to the fixed term contract. In particular, a fixed term contract can be entered into without reason for 12 months, after which it requires a specific reason. In any case, the total term of a fixed term contract cannot exceed 24 months, or it will be automatically converted into an open term contract. The maximum number of extensions is reduced to 4; if there is a fifth extension, the contract is automatically deemed an open term contract. For renewals a reason must be provided at all times. The exception to the mandatory inclusion of the reason is represented by extensions and renewals for seasonal work. The term to appeal a fixed term contract is extended from 120 to 180 days. In addition, a 0.5% increase in contributions by the employer becomes due at time of every renewal. The new rules apply to fixed term contract signed after 14 July 2018 and the extensions and renewals effective from 1 November 2018. Staff leasing is governed by the same rules of fixed term contract, except in the case of the provisions regarding the total number of fixed term contracts, right to take precedence and the so called stop-and-go. Fixed term staff leasing can be used up to a maximum of 30% of the overall staff hired with open term contracts; this limitation applies also to fixed term direct cooperation contracts. The offence of fraudulent staff leasing has been reintroduced.

In the past few days, the so called Dignity Decree (Law Decree 87/2018), which came into force on 14 July, was not approved by the Finance and Labour Committees which, during the review session, approved several amendments. With specific reference to the fixed term contract, the new regulations would be applicable to contracts entered into after the effective date of the Decree, as well as renewals and prorogations after 31 October 2018 (the so-called transition clause). Moreover, the Parliamentary Committees have approved, during the review session, the amendment according to which, except a different use of the collective agreement applied by the user, the number of employees hired with fixed term contract or staff leasing fixed term contracts cannot exceed overall 30% of the number of employees with open-ended contract working for the employer. In addition, the Committees have resolved on the introduction of the so called fraudulent staff leasing that takes place whenever the use of staff leased has the purpose of avoiding mandatory laws or collective agreements. Finally, the Committees, with reference to the conciliation model established on art. 6 of the Law Decree 23/2015, has proposed to higher the parameters from a minimum of 3 to a maximum of 27 monthly salaries. Now it is to be seen if the Decree will undergo further amendments at the time of approval.

The EU Directive No. 2018/957 amending the directive 96/71/EC regarding the posting of employees during the provision of services has been published on the EU Official Journal dated 9 July 2018. Specifically, the directive orders that the maximum term for transnational posting be 12 months, with the possibility of extending it for additional 6 months. At the end of the 12 months, based on the equal treatment principle, the posted employee shall be guaranteed with all the labour and employment conditions of the Country where he/she works. During the posting, the employees will be subjected to the regulations of the hosting country in terms of remuneration and they shall have the right to enjoy the lodging and indemnity conditions or reimbursement for travel expenses, meal and lodging, since he/she is away from home for business reasons. The member states shall apply also the regional or sector’s collective agreements, if widely encompassing and representative. The period in which the posted employee will hold his/her contributory regime  applicable in the origin country is reduced from 12 to 24 months and the regulations on the maximum work periods and minimum rest periods shall apply, including those governing the term of paid annual leaves. The regulation expands the application of the rules also to the staffing agencies that decide to post a worker at a user’s company headquarters or centre of activity in the territory of a member state. The Member States now have two years of time to adjust to said regulation their own domestic laws and regulations meaning by 30 July 2020.