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

View all Q1 2017 Global Guide Quarterly updates

Assignment of Procurement Contracts Trigger Application of Transfer of Business Rules

Enacted Legislation

Author: Carlo Majer, Partner — Lexellent

Legislative Decree No. 122 of July 7, 2016, which became effective on July 23, 2016, states that, in an assignment of procurement contracts that also involves employment contracts, if the new contractor does not implement a structural change with respect to the organization of the original contractor, transfer of business rules apply. Therefore, if there is the same business organization, the new contractor must ensure the same contractual and economic conditions to the employees already employed in the procurement contract. Moreover, the new contractor is jointly liable with the original contractor for any claim by employees relating to their employment relationship arising from the execution of the procurement contract.

Joint Liability for Principals, Contractors and Subcontractors in a Procurement Contract

New Order or Decree

Author: Carlo Majer, Partner — Lexellent

On March 17, 2017 the Italian Council of Ministers enacted Law Decree No. 25, which provides that, under a procurement contract, the Principal, the Contractor and the Subcontractor are jointly liable for any claims of employees employed under the procurement contract regarding their wages and their social security contributions. The Principal is now directly liable and he cannot rely - as he could in the past - on the benefit of prior satisfaction by the Contractor or Subcontractor of workers' claims. It can only seek reimbursement after payment. Therefore, from now on, the Principal should employ greater prudence when selecting Contractors and Subcontractors. The Decree is immediately effective but must be confirmed and converted into law by the Parliament by May 16.

Refusal to Allow Wearing of Hijab in the Workplace Not Discriminatory

Precedential Decision by Judiciary or Regulatory Agency

Author: Carlo Majer, Partner — Lexellent

On March 14, 2017, the EU Court of Justice established that the behavior of the employer which prohibits to its employees to wear the hijab or any other ideological, philosophical or political symbols in the workplace is valid and not discriminatory. The employer, in fact, may decide to observe a neutral political or religious behavior towards customers of his enterprise. This decision is valid for all employers in Europe, including Italy, who may now review the internal policies of their Companies with reference in particular to the provisions on employees' clothing.

Cancellation of the Employment Voucher Method of Payment as of 2018

Upcoming Deadline for Legal Compliance

Author: Carlo Majer, Partner — Lexellent

Law Decree No. 25 of March 17, 2017, which must be confirmed and converted into law by the Parliament by May 16, revokes the provisions on accessory work and states that, starting from March 17, employers can no longer buy employment vouchers to pay for accessory work. Employment vouchers already bought by the employer prior to that date can be used only up to December 31, 2017. Therefore, from January 1, 2018, employment vouchers will not be valid. It is likely that a bill aimed at regulating accessory work and a new method of payment for this kind of contract will come before Parliament in the coming months.