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; the "quota" for illegal work from 31 and up to 60 days of effective work is between 3,600 euros and 21,600 euros (before it was, respectively, 3,000 and 18,000) and illegal work beyond this last threshold is fined from 7,200 euros to 43,200 euros (before it was from 6,000 to 36,000 euros). The principle remains that, in the presence of illegal foreign workers or minors not in employment, the penalties are further increased by 20%.
b) the amounts due for violations sanctioned by art. 18 of Legislative Decree 276/2003 (here we refer both to the administration and, above all, to contracts without the requirements pursuant to Article 29, paragraph 1 and to illegal detachments pursuant to Article 30, where the penalties are the same as for illegal administration). The unauthorized exercising of the administration is punished (it is no longer a financial penalty, after the decriminalization, with the exception of the use of minors of non-working age where there is also the penalty of arrest for up to 18 months) for each worker employed and for every working day with 60 euros. The same goes for the unauthorised exercise of the intermediation and selection of staff where the offenses are punished with a sum of between 900 and 4.500 euros or, if without profit, with an amount between 300 and 1,500 euros.
c) the amounts due for violations pursuant to art. 12 of Legislative Decree no. 136/2016. Here the Legislator has turned his attention to "transnational detachment" bringing the administrative sanction to an amount between 1,200 and 12,000 euros for those who circulate, on the road, without the required documentation (paragraphs 1-bis, 1-.ter and 1, Article 10, for example, employment contract, pay table, etc.). The sanction relating to the preservation of documentation and the appointment of referents (Article 10, paragraph 3 and 4) is also increased: the amount is now respectively from € 600 to € 3,600 and from € 2,400 to € 7,200.
d) the amounts due for the violations affected by paragraphs 3 and 4 of art. 18-bis of D.L.gs. n. 66/2003. Here, the Legislator, after having chosen, in the past, the system of "banded" fines, related to the number of workers involved and the number of violations, has focused attention on the maximum duration of the weekly working hours (48 hours, intended as an average, inclusive of the extraordinary) and on weekly rest (intended as an average over a period of 14 days). The amounts are now between 120 and 900 euros. If the violation refers to more than 5 workers or has occurred in at least 3 reference periods, the penalty increases and rises to an amount between 480 and 1,800 euros. If the violation affects more than 10 workers or has occurred in at least 5 reference periods, the amounts, without the possibility of reduced payment, rise to 1,200 and 6,000 euros respectively. The violation of the precept relating to annual leave (Article 10, paragraph 1) is punished with an amount between 120 and 720 euros. Even here there are surcharges if the absence affects more than 5 workers and has occurred in two years (from 480 to 1,800 EUR), or more than 10 employees, or there is at least four years (from 960 to 5,400 Euros, without the possibility of reduced payment). It also increased the penalty relating to failure to provide daily rest (60 to 180 euros): these amounts rise if one refers to more than 5 workers, or the whole amount, if it has occurred at least 3 times (from 360 to 1,200 Euros), or more than 10 or has occurred at least 5 times (from 1,080 to 1,800 euros, without the possibility of reduced payment). It should also be remembered that all the amounts mentioned above, apart from that relating to the violation of the precept on annual leave, must be doubled as a result of the provisions of the law decree n. 145/2013, converted with amendments into Law 9/2014.
In this case also, as of the same date of 1st January 2019, the following increase by 10%:
- the amounts due for all the violations sanctioned in administrative or penal by the Legislative Decree n. 81/2008.The increase of the amounts by 20% is also envisaged:
- for violations of other provisions on labour and social legislation, identified by the Minister of Work with its own Decree. It will be interesting to check on what elusive behaviours the attention of the Dicastery owner will be aimed at. Obviously, there is reason to believe that for these sanctions the increase will not start as of 1st January 2019, but as of when the administrative provision is issued.
The increases are doubled if, in the previous three years, the employer has been the recipient (administrative or criminal sanctions for the same offenses will have to be clarified, as to whether this refers to the offender in name or the company) of administrative fines for the same offences. Here the Legislator, who used a "non- technical "term, does not seem to refer to art. 8-bis of the law n. 638/1981 on the subject of recidivism limiting themselves to merely recall the fact that, in the three years before, the employer has been the recipient of administrative sanctions, without specifying (as would be right and appropriate) that the increase is triggered in the presence of a definition of the same in an administrative or judicial way.
C) The employer who activates a reintegration project is entitled to a reimbursement of 60% of the salary paid to the worker with disability from work who, at the end of the state of absolute temporary incapacity, cannot work.
This is what the 2019 budget law foresees. The reimbursement depends on the formal availability of the worker to participate in the project until it is fully implemented, for a maximum of one year. News is also expected on electronic medical certificates and INAIL insurance for housewives. For many years INAIL has highlighted important cash surpluses and very often patrimonial surpluses, even when considering management of agricultural assistance. By virtue of these cash surpluses the legislator of the time, by means of law n. 147/2013, has started the revision of the INAIL premium rates. In relation to the revision, starting from 2014, a reduction in the premiums and contributions has been planned, referring to all insurance management, whilst awaiting the issue of the new tariff. The 2019 budget law provides for the shift of the terms of the self-assessment of the 2018 adjustment premium and of the 2019 instalment, motivating the need for technical times for the issue of the new INAIL premium rates. In addition to the shifting of the terms relating to self-liquidation, the 2019 budget law provides for the collection of funds earmarked for the funding of the revenues expected for the implementation of the new tariff which, given the cash surpluses, should necessarily be less onerous than the previous one.
D) Drastic cut of the resources allocated for the incentives to the companies that stipulate apprenticeship qualification contracts and professional diplomas, upper secondary education diploma and the higher education certificate of technical specialisation.
This is what the 2019 budget law foresees. Among these cuts, the disapplication of the redundancy contribution and the reduction of the social security contribution rates imposed by the employer. Among other new features, the Budget Law 2019 extends and reformulates the incentives for apprenticeships for vocational qualifications and diplomas, upper secondary education certificates and higher education certificates of technical specialisation.
Paragraph 153 of Article 1 provides for the following change in the financial allocation to cover the incentives provided for the re-launch of the first level apprenticeship:
2018 Budget 2019 Budget
2018 5 million 5 million
2019 15.8 million 5 million
2020 22 million 5 million
2021 and subsequent years ---- 5 million
E) Employment bonus. In 2019 the companies that hire young graduates or those that hold a research doctorate can count on the new job bonus for young talent. The subsidy provides for the total annual reduction of social security contributions paid by the employer, with the exclusion of premiums and contributions due to INAIL, up to a maximum limit of € 8,000 for each hiring made. The duration is 12 months starting from the date of employment, which must however be carried out by December 31st, 2019.
This is a total annual relief of social security contributions paid by the employer applicable to open-ended hiring in 2019 of young graduates or those who hold a research doctorate. The advantage is granted to private employers, consequently it is also granted to subjects who do not have a company profile with the exclusion of public administration. To this end, the clarifications provided in this regard by INPS with circular no. 178/2015 which identifies the scope of application of benefits for private employers may be useful. The benefit is provided in favour of private employers who make permanent appointments from 1st January to 31st December 2019 or in the case of transformation, in the same period, with the exclusion of domestic employment relationships.
The requisites of the hired workers in order to qualify for the benefit are the following:
a) the holding of a master's degree, obtained in the period between 1st January 2018 and 30th June 2019 with a score of 110 cum laude and with a weighted average of at least 108/110, within the legal duration of the course and before their thirtieth year of age, in state or non-state universities that are legally recognised;
b) holding a research doctorate obtained in the period between 1st January 2018 and 30th June 2019 and before the completion of the thirty-fourth year of age, in state or non-state universities that are legally recognised.
Therefore, a twofold temporal requirement: the first relating to the period in which the recruitment must be carried out, the second concerning the period relative to the achievement of the required qualification.
That means, being hired in 2019 and the qualification awarded from 1st January 2018 to 30th June 2019. In addition to these conditions other conditions must be satisfied: the degree must have been obtained before the 30th birthday for graduates, 34 years in case of holding a research doctorate. The title may have been obtained also at telematic universities.
The size of the incentive is equal to the total annual relief of social security contributions paid by the employer, with the exclusion of premiums and contributions due to INAIL, up to a maximum limit of € 8,000 for each person hired. The duration is twelve months starting from the date of employment, which must however be carried out by December 31st, 2019.
The relief measure is also for open-ended part-time contracts: in this case, the annual ceiling of € 8 thousand must be proportionally reduced.
The relief measure also applies to agreements for the transformation of fixed-term employment relationships into permanent contracts that took place during the course of 2019 and without prejudice to the possession of the general requirements on the transformation date. This hypothesis may be useful in the case of a young person not yet in possession of the qualification required at the time of employment and who later obtained it before 30th June 2019; in this case, the transformation will be able to take advantage of the relief measures.
The benefit is not due to private employers who, in the twelve months prior to the recruitment, have made individual redundancies for objectively justified reasons or collective redundancies in the same production units in which they intend to hire or make facilitated transformations. There is also a hypothesis of forfeiture if the employer proceeds to the individual dismissal for objectively justified reasons of the worker hired with the employment young excellences bonus or of a worker employed in the same productive unit and graded with the same qualification as the worker hired with the aforementioned facilitation.
The hypothesis of a forfeiture comes in if the dismissal is carried out within twenty-four months following the facilitated recruitment and determines the revocation of the concession as well as the recovery of the previously granted relief. If the young person is hired with the benefits but the relief has not been fully utilized, a possible hiring by a subsequent employer in the period between January 1st, 2019 and December 31st, 2019 may allow the use of the remaining period.
The facility can be combined with other incentives for recruitment, of an economic or contributory nature, provided for by the national and regional regulations. The use of the relief is subject to the publication of a special INPS circular in which the methods for using the exemption will be established. (ADO)
