Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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COVID-19: Short-time Work Measures Extended

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

In December 2020, the government enacted new Law no. 178/2020, which among other things extended the short-time work programs that had been implemented in March 2020 as part of several COVID-19 measures. The short-time work programs allow employers to reduce employees’ working hours down to zero hours per week while compensating employees up to 80% for the loss of salary (with a cap of approx. EUR 1,100 monthly) through the Italian Social Security Authority (INPS). The new law extended the short-time work program for an additional 12 weeks. The program known as “CIGO” is available from January 1 to March 31, 2021; “CIGD” and “FIS” are available until June 30, 2021. The 12 weeks may apply to short time work periods that occur, even partially, after January 1, 2021.

As an alternative to short-time work programs, the new Law no. 178/2020 allows employers to claim exemptions from payment of mandatory social security contributions for employees. The exemption is available for a maximum of eight weeks and will expire on March 31, 2021. Employees subject to this measure can still earn their full social contribution payments from INPS.

COVID-19: Ban on Individual and Collective Dismissals

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

At the start of the pandemic, the government enacted a dismissal ban that applied from March 17, 2020, to August 17, 2020. The ban covered individual and collective dismissals due to economic reasons. In August, the government enacted Decree no. 104/2020, extending the dismissal ban, except that it made it conditioned on the use of short-time work programs. Specifically, the dismissal moratorium applied until the employer was able to benefit from the 18 weeks of the short-time work programs or from the social contribution exemption. With the enactment of new Law no. 178/2020 in December 2020, the dismissal ban was extended until March 31, 2021, except to be eligible, the use of short time work programs or social contribution exemption is no longer required.

COVID-19: Fixed-Term Contracts

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

To jumpstart business activities and help recover from the COVID-19 pandemic, the government enacted an extension on rules regarding fixed-term contracts. Article 1, paragraph 279 of the new Law no. 178/2020 allows employers to renew or extend fixed-term employment contracts, even in the absence of the mandatory “causes” that would otherwise apply in these cases. Such option will be available until March 31, 2021, and the extensions can be for one time only and for a maximum of 12 months, without prejudice to the maximum total duration of 24 months.

Amendments to the “Expansions Contract” Program

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

In December 2020, the government enacted Law no. 147/2020. Among other things, this law lowered the threshold for companies to avail themselves of the “expansions contract” measure. Under art. 1, paragraph 349 of the law, the measure is available to employers with at least 250 employees. Under the "expansions contract" program, companies can access a series of measures to simplify and reduce labor costs, including: (i) short time work program (CIGS), with a reduction in working hours of up to 30%, to encourage new hiring processes; and (ii) early retirement options for employees who are no more than five years away from retirement age. For companies with more than 1,000 employees who hire at least one person for every three exits, the reduction in charges is extended by 12 months, in addition to the 24 months already envisaged.

Palermo Court Judgement on “Delivery Riders”

Precedential Decision by Judiciary or Regulatory Agency

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

On November 20, 2020, the Court of Palermo’s labor section ruled on the qualification of the employment relationship of a delivery company rider. In ruling the dismissal to be unlawful, the court ordered the company to reinstate the employee. This is an important judgment as the judge relied on an interpretation of Article 2094 of the Italian Civil Code, viewed within the context of the digital revolution. In fact, the court noted that the delivery technological platform enables work organization processes that are based on hierarchical dependence, subjecting the employee to management, control and disciplinary powers, elements that are typical of a subordinate employee.