Insights

Tommaso Nannicini, an economist at the Bocconi University in Milan and one of the closest advisors to Prime Minister Matteo Renzi, confirmed that the Government’s objectives in reforming art. 18 of Law 300/1970 are to specify the “extreme cases” of illegal disciplinary dismissals where job reinstatement will be permissible, whereas real protection will be completely eliminated for economic redundancies.

Among the hypotheses under study of the Government also the possibility to transfer 50% of TFR in the employees’ payslips.

Disable persons not hired by the company are granted with damages for the period between the commencement day ad the actual first working day.

The Inps, with message no. 6973/2014, clarified that in case of sickness the doctor's prognosis is binding for both the employee and the employer.

For the purposes of identification of threshold for hiring with fixed-term contracts, in the case of companies that started the business activity during the year (start-up), the number of open-ended term employees in force at the time of the first employee hired with fixed-term contract has to be taken into account.

INPS, with note no. 100 of September 2, 2014, provided for the instructions for payment to the new residual solidarity Fund (introduced through DM 79141/2014). The payments are due by companies – to which redundancy fund is not applicable – with more than 15 employees.

The reform of the fixed-term contract by the Law Decree 34/2014 requires the compliance with the threshold provided by the collective agreement. In lack of collective provisions, the threshold is equal to 20% of the employees hired with open ended contract, with provision of a transient period expiring on December 31. Such period is granted to employers in order to comply with the said limit in 2014.

The Labour Ministry, with decree n. 83117/14, has established the new fund of 400 million for the exceptional redundancy fund and mobility treatments.