EXECUTIVES: OUTSIDE FIXED TERM CONTRACTS THRESHOLD (IL SOLE 24 ORE, JUNE 21, 2014, PAGE 19)
Fixed term contracts entered into with Executives do not account as regards the 20% threshold, introduced by the so-called "Jobs Act".
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Fixed term contracts entered into with Executives do not account as regards the 20% threshold, introduced by the so-called "Jobs Act".
Collective dismissals are governed by Law 223/91, which excludes from its application Executives (“Dirigenti” in the Italian parlance), according to art. 4 par. 9. Not only the legislator, but case-law and legal doctrine as well considered that collective dismissals discipline is not applicable to Executives, due to the peculiarity of the employment relationship, based on a strong trustworthy bond between them and the employer and the not applicability of the restrictive dismissals rules provided for by Law 604/66.
The fixed term contracts, entered into in order to replace an absent employee, benefit of better treatments. In case of replacement of an employee absent for maternity leave, the employer, who has no more than 19 employees, is entitled to a 50% reduction of the relevant social security contributions.
Constitutional Court, judgment no. 155 of May 21, 2014, stated the constitutional lawfulness of art. 32, par. 4, letter b), of Law 183/2010, considering fully reasonable the choices taken by the legislator with reference to the Article 3 of the Constitution.
The Law no. 78/2014 came into effect on May 20, 2014 and, consequently, the fixed-term discipline changed three times in 60 days.
The Ministerial Decree of February 14, 2014, published in the Official Gazette no. 123 of 29 May 2014, has confirmed for this year the opportunity for employers to take advantage of the social security contribution reduction for 2013 bonuses provided by the second-level bargaining.
20% threshold does not apply to all fixed term contracts. The law provides for employment relationships which are exempted: (i) employers who have up to 5 employees can enter into one fixed term employment relationship;
The Labour Ministry should shortly published a note formalizing the rules for tax reduction on items of remuneration linked to productivity in 2014.
