Italy: What is the main news set forth by the Labour Decree recently approved by the Italian Government?

The most innovative profile of the Labour Decree is the revision of the discipline of fixed-term employment contracts.

The previous regulation was significantly strict, in particular regarding the reasons required to ground fixed term employment contract lasting more than 12 months.

The new discipline extends the range of reasons that may ground the fixed-term contracts lasting at least 12 months but not exceeding 24 months. Such reasons are:

• those established by collective bargaining agreements (at national, territorial or company level).
• The technical, organizational and production reasons individuated by the employer and employee in the contract, in the absence of regulation by collective bargaining agreements (this faculty is granted only until December 31, 2024).
• Other employees’ substitute needs.

Another interesting novelty provided by the Labour Decree is the lightening of the obligations set forth by Legislative Decree No. 104/2022 which – less than one year ago – implemented the EU directive no. 1152/2019 on transparent and predictable working conditions.

Under the former discipline, the employer was burdened to mandatorily notify the employee accurate information at the time of the initiation of the employment relationship and prior to the start of the employment activity. Specifically, individual employment contracts had to include provisions concerning trial period, employees’ training, leaves and holidays, the compensation and its method for calculation and payment, the working hours, the procedure/ form/ and terms of notice in the event of termination, entities that receive social security and assistance contributions.

Under the Labour Decree within a simplification perspective, the reference in the employment contract to the law or collective bargaining agreement’s provision regulating the matter is considered sufficient to fulfil the mentioned information’ requirements.

It is worth evidencing that the new decree also provides facilities for young workers and disadvantaged individuals’ hirings and the raising of the exemption limit from tax and contributions for fringe benefits from the amount of Euro 258.23 to Euro 3,000 for year 2023 but only for employees with dependent children.

Lastly, the Labour Decree establishes further obligations and stricter monitoring rules to ensure the health and safety of employees in the workplaces.

Key Action Points for Human Resources and In-house Counsel

Practical Points

• A flexible and wider use by companies of fixed-term employment contracts is enabled since the contractual parties may directly establish in the fixed-term contract the reasons grounding it (this option is viable only until December 31, 2024 and in the absence of regulation by collective bargaining agreements at national or company level).
• The employer is still required to indicate in the employment contracts: the identity of the parties signing the contract, the place of work, the workers’ duties and the related work category, duration of the employment relationship and the type of contract.
• The employer shall mandatorily deliver or make available to the personnel, also by publication on the website, the national, territorial and company collective agreements, as well as any company regulation applicable to the employment relationship.
• Regarding health and safety to be granted in the workplaces, companies will be burdened to appoint the competent doctor also in case the risk assessment requires it.
• The employer using work equipment for professional activities will be required to attend specific courses and training as required for employees.