THE «DIGNITY DECREE» CONVERSION LAW

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General Data Protection Regulation (UE) 2016/679 1

THE «DIGNITY DECREE»

CONVERSION LAW

Effects on Labour Laws and Regulations

Law-decree no. 87 of 12 July 2018 - effective as of 14 July 2018

Conversion law dated 9 August 2018 - effective as of 12 August 2018

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The “Dignity Decree” Conversion Law 3

1. Fixed -Term Contracts (FTC)

(Legislative Decree no. 81 of 15 June 2015: articles 19 et seq.)

Art. 19 «Fixed term and maximum duration»

In the past

− Maximum duration of FTCs = 36 months

− If exceeding 12 days, an FTC’s term ought to be directly or indirectly evidenced by a written instrument

Nowadays 1

− Maximum duration of FTCs = 12 months

− Longer durations of FTCs – up to 24 months (even where

subsequent FTCs are put in place) – may only be permitted upon occurrence of any of the following conditions (i.e. the « justification clauses»):

▪ Temporary and objective needs, falling outside the scope of ordinary business, or where other employees must be replaced

▪ Requirements due to a temporary, significant and unforeseeable increase of ordinary business

− If exceeding 12 days, an FTC’s term must be evidenced by a written instrument. In case of novation, the written instrument shall provide for a description of the «justification clauses»; whilst, in case of extension, the above clauses will only be required for terms exceeding 12 months, on aggregate

Art. 21 «Extensions and novations»

In the past

− An FTC could be extended up to 5 times during its maximum duration of 36 months

Nowadays

− FTCs are eligible to be renewed only in the event that the requirements set out in article 19 are met; extensions are permitted at will during the first 12-month period, and subsequently only upon occurrence of the abovementioned conditions

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− An FTC may be extended up to 4 times during a maximum duration period of 24 months

Art. 28 «Statute of Limitations»

In the past

− Employees were entitled to enforce FTCs in the 120-day period running from the date of termination of each contract

Nowadays

− Employees are entitled to enforce FTCs in the 180-day period running from the date of termination of each contract

2. Temporary Work Contracts

(Legislative Decree no. 81 of 15 June 2015, articles 30 et seq.)

Art. 31 «Open-ended and fixed-term temporary work

contract»

In the past

− Contracts for the provision of workforce on a temporary basis were available subject to the restrictions set out in the collective bargaining agreements adopted by the relevant organization

Nowadays

− Unless otherwise provided for in the collective bargaining agreements, the number of staffs hired by an organization under an FTC or a fixed-term temporary work contract, should not exceed 30% of the workforce hired under a PEC by the same organization

Art. 34 «Employment Policies»

In the past

− The rules governing FTCs applied to temporary work contracts, except for articles:

▪ 19, paragraphs 1, 2, 3 (the whole set of rules on the duration of FTCs)

▪ 21 (the whole set of rules on extensions and novations) ▪ 23 («30% quota» clause)

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Nowadays

− The rules governing FTCs apply to temporary work contracts, except for articles:

▪ 21, paragraph 2 (mandatory period of time required after termination between two FTCs, in case of novation)

▪ 23 («30% quota» clause) ▪ 24 (priority rights)

Art. 38-bis «Fraudulent temporary contracts»

Nowadays

− Temporary contracts entered into with a view to avoiding the compulsory provisions of law, or the collective bargaining agreements, will give rise to an offence, which will be sanctioned by a fine of 20 euros per worker per day of infringement

3. Contributions owed in case of novation of FTCs or

temporary work contracts

(Art. 2, paragraph 2, of law no. 92 of 28 June 2012) In the past

− In case of novation of an FTC or a temporary work contract, the employer was obliged to pay a contribution equal to 1.4% of the taxable compensation for social security purposes

Nowadays

− In case of novation of an FTC or a temporary work contract, the employer is obliged to pay a contribution equal to 1.9% of the taxable compensation for social security purposes

4. Damages owed in case of unfair dismissal

(Legislative Decree no. 23 of 4 March 2015)

Art. 3 «Dismissal for cause or on reasonable grounds»

In the past

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Nowadays

− Damages payable in case of dismissal for cause or on reasonable grounds, which are proven to be groundless: 6 to 36 monthly salaries

Art. 6 «Settlement Offer»

In the past

− In case of settlement, the employer was bound to offer the employee a consideration ranging between 2 and 18 monthly salaries

Nowadays

− In case of settlement, the employer is bound to offer the employee a consideration ranging between 3 and 27 monthly salaries

5. Casual Employment

(Law-decree no. 50 of 24 April 2017– Conversion law no. 96 of 21 June 2017)

Art. 54-bis «Rules governing casual employment.

Family Record. Odd Job Contract»

In the past

− For tourism workers:

▪ Odd Jobs may be offered by employers endowed with a staff of 5 employees, at least

− For farmland workers:

▪ Odd Jobs could entail a maximum duration of 3 days

Nowadays

− For tourism workers:

▪ Odd Jobs may be offered by employers endowed with a staff of 8 employees, at least

▪ Odd Jobs may entail a maximum duration of 10 days

− For farmland workers:

▪ The worker must declare that he/she has not been entered in

the lists of farmland workers during the previous year

▪ Odd Jobs may entail a maximum duration of 10 days

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entry of the relevant record in the Italian Social Security platform

6. Advantages for hiring young people under a Permanent

Employment Contract (PEC)

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THE «DIGNITY DECREE» CONVERSION LAW