The most important workplace law key points in the new Budget Law
A) Also confirmed for 2019 and 2020 are social security contributions for private employers who hire, with a permanent or even part-time contract, people aged up to 35 or, if over that age, who have been without a legal paid work for at least 6 months. The production units where recruitment takes place must be located in Campania, Puglia, Basilicata, Calabria, Sicily, Abruzzo, Molise or Sardinia. Both the registered office of the company and the place of residence of the worker concerned do not affect the bonus.
Under paragraph 247 of art. 1 of the budget law 2019 (Law No. 145/2018), the Legislator has extended to 2019 (and 2020) the so called “Bonus Sud”” already in force last year as a result of the Budget Law 2018 (Law No. 205/2017).
The benefit is provided in favour of all private employers who hire, with a permanent, even part-time, contract during 2019 (and if the Decree foresees, immediately, also in 2020) people under the age of 35 (that is, at the time of actual employment they have not exceeded the threshold of 34 years and 364 days) or, if older, who are without a legally paid job for at least 6 months. The “”over 35″” are considered disadvantaged workers if they have not worked in the last six months in an employed status lasting at least six months or, if during the same period, they have worked in an autonomous or para-subordinate form from which an income has been derived that corresponds to a gross tax equal to or lower than the deductions due under art. 13 of the Presidential Decree n. 917/1986. As specified by the INPS circular no. 49/2018, there is no reference to the legality of the employment relationship but to its duration or, for self-employment or para-subordinate work, to the income limit of 4,800 euros. The productive units of the employers who recruit must be located in Campania, Puglia, Basilicata, Calabria, Sicily, Abruzzo, Molise or Sardinia, without affecting the “”bonus”” both the registered office of the company and the place of residence of the worker concerned, who may well be outside these areas.
The benefit, in the form of tax relief for the workers who are hired under the provisions contained in Art. 1 bis of the L.D. n. 87/2018, converted, with amendments, into Law no. 96/2018, reaches the maximum limit, in the 12 months with reference to tax relief, which is represented by a ceiling of 8,060 euros, already in existence with law no. 190/2014: it can be combined with other exemptions or reductions in financial rates provided for by other provisions, limited to the period of application (one year from employment). If recruitment takes place part time, the benefit will be reduced “”pro-rata””. If, after the employment relationship is established, the employee is transferred to another production unit located “”outside”” the above-mentioned regions, the benefit will cease starting from the month following the month in which the transfer took place. The maximum threshold of exemption from employer contribution related to the period of monthly pay, applying the criteria already provided by the Institute with circular no. 49/2018, amounted to EUR 671.66, while for the relationships established or resolved during the month, the ceiling should be re-proportioned on the basis of EUR 21,66 (EUR 671,66 / 31) for each day of use.
B) The powers of the National Labour Inspectorate have been strengthened as have penalties imposed on employers who are not in compliance with the regulations. From 1st January 2019, in fact, penalties have increased by 20% for the employment of workers without prior communication to the employment centre, for the non-communication of the international posting and for the irregular administration of work and in case of failure to comply with the rules on working hours. The increases are doubled if the employer is recidivist.
Under paragraph 445 of art. 1 of the Budget Law 2019, a series of innovations are brought together into a single law, with the main objective to, on one hand, strengthen the supervisory activity of the National Labour Inspectorate and their peripheral links and, on the other hand, to increase the amounts relating to penalties for certain elusive behaviours of the employer considered to be particularly recurrent.
As of 1st January 2019, the following shall be increased by 20%:
a) the amounts due for violations of illegal work referred to in art. 3 of the D.L. n. 12/2002 converted, with amendments, by law n. 73/2002. This means that: the amounts provided for from 1,500 to 9,000 euros for each irregular worker up to 30 days of effective work, rise respectively to 1,800 and 10,800
