THE SO-CALLED DIGNITY DECREE DEFINITIVELY APPROVED: NEWS ON WORKING MATTERS
Having been definitively approved by the Senate, the so-called Dignity Decree will shortly be published in the Gazzetta Ufficiale (Government gazette). In addition to the aspects already highlighted following the decree coming into force, we specify below further news of the text introduced during the parliamentary procedure, so as to facilitate the use of the new rules as far as possible.
Below we report all the aspects of potential interest, in our opinion, in the field of labour law.
Fixed-term contract.
The following changes introduced by the “Dignity Decree” are confirmed
a) 12-month acausal contract limit;
b) necessity of motives for contracts with a duration of more than 12 months, including extensions and in any case of renewal;
c) maximum duration of 24 months;
d) maximum number of 4 extensions.
No significant changes have been made regarding reasons that have therefore remained the same as referred to in the decree law (in particular, the reason of peaks of activity has not been introduced, as was hoped for).
Fixed-term administration contract.
The same rules apply as for fixed-term contracts with the exception of:
a) stop and go -> The current text of the conversion law relinquishes the need to implement ‘stop & go’, even between a fixed-term contract and a temporary contract (and vice-versa);
b) right of precedence;
c) forecasted quantitative limits for temporary contracts.
Announcements:
The current text of the conversion law also dictates:
- the introduction of a legal limit for the use of temporary contracts an administration contracts, unless the applied National Collective Labour Agreement states otherwise;
- in case of fraudulent administration, in addition to the existing sanctions, a penalty for the administrator and user of €20 for each worker for each day of administration;
- that the regulation of the motives referred to in the temporary contract applies to the user.
Transitional provisions for temporary contracts
Announcements:
A transitional regulation has been introduced up to 31.10.2018 which "revives" the regulations prior to the coming into force of the conversion law and the Dignity Decree.
This regulation only applies to renewals and extensions (of pre-existing contracts) and not to new temporary contracts, such as those that may be stipulated directly with the Company after previous periods of administration.
For extensions and renewals of existing fixed-term contracts stipulated from the date that the conversion law came into force and until 31.10.2018, the following rules therefore apply:
- maximum duration of 36 months (including any periods in administration);
- maximum of 5 extensions;
- no requirement for any reason other than for exemption from quantitative limits.
New temporary contracts are instead subject to the regulations of the conversion law illustrated above.
Unjustified dismissal compensation and increase in contributions
Confirmed:
- increase in the penalty for unjustified dismissal, for workers subject to the regime of increasing protection, of two months for each year of service from a minimum of 6 to a maximum of 36 months;
- 0.5% increase in additional contribution for each renewal of fixed-term contracts and administration contracts;
Announcements:
- increase in the amount of the settlement offer in the event of unjustified dismissal for collaborators subject to the protection regime from a minimum of 3 to a maximum of 27 months;
Contribution exemption to promote youth employment
Announcements:
- for workers under 35 years of age hired on permanent contracts in the years 2019 and 2020 and who have not had other permanent contracts with other employers, the following regulations apply:
a) max 36 months;
b) exemption from the payment of 50% of social security contributions (excluding INAIL contributions)
c) up to a maximum of €3,000.00 per year. (ADO)
