De Luca & Partners

LIBERALIZATION OF FIXED TERM CONTRACTS: NO FURTHER NEED FOR JUSTIFYING REASONS

Law Decree no. 34/2014, which became effective on March 21, 2014, abrogated the obligation for the fixed term employment contracts to be based on justifying reasons (i.e. technical, productive, organizational and replacement reasons), previously requested as essential condition for the lawfulness of temporary contracts exceeding 12 month duration.
 The maximum duration allowed for fixed term employment relationship without need of justifyinbg reasons is now 36 months, including extensions and renewals.
 The contract may be extended, should the initial term be lower than 36 months, up to 8 times for carrying out of the same working activity of  the initial contract.
 The total number of fixed term employment relationships engaged by the same employer cannot be higher than 20% of the overall headcount. This threshold is not applicable for companies staffed with up to 5 employees, which are always allowed to have 1 temporary employ.
 Law Decree no. 34/2014 shall remain temporarily effective for 60 days, when it shall be converted into ordinary Law, with amendments if any, failing which conversion it will cease to be effective and applicable.
 
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