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On May 5, 2023, a new law entered into force that introduces some important changes to labor regulations.
Contents
in depth
1. Fixed-term employment contracts
2. Obligations of transparency
3. Tax discounts
4. Hiring incentives for specific categories of employees
5. Restructuring of the company
6. Health and safety
in depth
1. Fixed-term employment contracts
The new law provides that when fixed-term employment contracts have a duration (including extensions) between 12 and 24 months (i.e. the maximum possible duration for Italian fixed-term employment contracts) or are independently extended of its duration, the employer must indicate a specific business need that justifies the fixed duration of the agreement. These reasons can be:
those provided by collective agreements
replacement of absent employees.
Only for executed agreements between May 5, 2023 and April 30, 2024 and provided that no rules are set forth in the applicable negotiation agreements, the parties may agree in writing to other distinct business needs, which must be carefully evaluated on a case-by-case basis in order to minimize the risk of conversion of the relationship employment in a permanent way.
2. Obligations of transparency
The new law also simplified some transparency obligations introduced in 2022 by the so-called “Transparency Decree” (click here to read our dedicated newsletter).
In particular, when formalizing an employment contract, it will be enough to refer to the law and collective agreement, without needing to replicate related provisions, on issues such as: (i) professional training; (ii) the duration of paid leave and vacation; (iii) procedures, form and terms for termination; (iv) initial compensation and compensation elements; (v) working hours; (vi) social security and insurance entities. The employer is now obliged to make the applicable collective agreements and company manuals available to each worker. In relation to the need to inform workers in writing of the automated systems used for the management or monitoring of the employment relationship, the new law clarifies that this obligation only applies to systems that completely automated
3. Tax discounts
For the year 2023, business welfare measures granted to employees with taxable children are exempt from personal income tax up to 3,000 euros. The same discount applies to amounts paid or reimbursed for household bills. Employers who intend to benefit from these discounts must notify their works councils, if they are located in the workplace.
4. Hiring incentives for specific categories of employees
Low-income employees: from 1 January 2024, a new income support measure called “Inclusion Allowance” will be available. Employers who hire workers benefiting from the inclusion subsidy have the right to:
i. a 100% social security discount of up to 8,000 euros, up to 12 months if the worker is hired with an indefinite employment or apprenticeship contract. With the exception of disciplinary dismissals, if the employer dismisses the worker within 24 months of the date of employment, he will be obliged to reimburse all Social Security contributions normally due plus penalties ii. a 50% Social Security discount of up to 4,000 euros, up to 12 months in the event that the worker is hired on a temporary basis, when certain conditions are met.
Young workforce under the age of 30: from 1 June 2023 until 31 December 2023, employers who hire under 30 “NEET” (not engaged in employment, education or training) that are enrolled in the National Operational Program “Iniziativa Occupazione Giovani”. is entitled for 12 months to an incentive that varies from 20% to 60% of the worker’s gross monthly remuneration.
5. Restructuring of the company
The new law has also modified some provisions on restructuring. The Ministry of Labor can now grant an additional period of extraordinary leave measures (Cassa Integrazione Guadagni Straordinaria), where it has already been granted until December 31, 2023, to companies that continue to face a crisis situation and that they have not finished, in 2022, the corresponding reorganization. and restructuring plans. This extension can be granted by the Ministry of Labor at the request of employers, with certain conditions but without the need for trade union consultations.
6. Health and safety
Some health and safety changes have also been introduced. Among others, the new law:
extends the obligation to appoint a company doctor as long as the applicable Risk Assessment Document (“Documento Valutazione Rischi”) requires it for the performance of pre-employment medical checks, the new provisions oblige the company doctor to obtain from the worker his medical record of your previous employer.
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