Last Updated on May 12, 2023
Decree Law no. 48 of 4 May 2023 on ‘Urgent measures for social inclusion and access to employment’ has been published in the Official Gazette. The piece of legislation aims to ensure greater flexibility for personnel management and less bureaucracy for companies.
In fact, in addition to changes to the Citizenship Income (Reddito di Cittadinanza) — which will disappear in 2024 and be replaced by new measures against poverty — the decree also introduces amendments to the discipline of fixed-term employment contracts, simplification of information obligations under the so-called Transparency Decree, and hiring incentives.
Below are the main points of interest to employers.
Fixed-term employment contracts (art. 24)
The decree amends the grounds under which it is allowed to use fixed-term employment contracts, strengthening the role of collective bargaining agreements.
In particular:
- It is still possible to enter into contracts for a period not exceeding 12 months with no need to provide for grounds.
- It is possible to (i) enter into contracts lasting between 12 and 24 months, (ii) extend the length of a contract beyond 12 months or (iii) renew a contract (regardless of its duration):
- Permanently, in the cases provided for by the collective bargaining agreements (national, territorial or company-level) stipulated by the union associations that are comparatively more representative on a national level;
- Only in the absence of relevant provisions in the collective agreements applied in the company and until 30 April 2024, in the cases agreed upon by the individual parties to meet technical, organisational or production needs.
Furthermore, it is still possible to sign fixed-term contracts to replace other workers.
Simplification of disclosure obligations (art. 26)
The decree also amended the way in which employers’ may fulfil their obligation to provide employees, in writing and in detail, with a series of information relating to the employment relationship at the time of recruitment or during its execution, which was recently regulated by the Transparency Decree.
From now on, the information relating to the probationary period, training, holidays and paid leave, notice, remuneration, working hours as well as to social security and insurance institutions, may be provided to employees simply by referring them to the relevant legislation or collective bargaining agreement (including company-level agreements).
Employers shall also provide or make available to employees, even online, the collective agreements and company policies (if any) that apply to the relationship.
The scope of the additional information obligations on the use of automated decision-making or monitoring systems has also been limited. As of 5 May 2023, in fact, employees concerned and their union representatives must be informed of the aspects of the employment relationship affected by these systems, their purposes and aims, the operating methods and the level of IT security only in the event that the systems in question are ‘fully’ automated.
Hiring young people (art. 27)
Private employers who, in the period from 1 June to 31 December 2023, hire employees under the age of 30 who are NEET (not in Education, Employment or Training) and are registered with the National Operational Programme ‘Youth Employment Initiative’, are granted for 12 months an incentive equal to 60% of the gross monthly salary (taxable for social security purposes).
The benefit is due in case of employees hired with an open-ended contract, also for the purpose of staff leasing, and also with an apprenticeship contract.
The incentive is granted by INPS, must be applied for online and is paid to the employer by means of an adjustment in the monthly social security contributions’ statements. From an operational point of view, the Social Security Agency shall evaluate applications in chronological order of submission and, after ascertaining the amount of available resources, shall assign the applicant a mandatory term of 7 days to sign the employment contract and a further 7 days to communicate its conclusion. Failure to comply with these deadlines will result in non-granting of the benefit.
Finally, the measure may be cumulated with other exemptions under the regulations in force and, in this case, will be equal to 20% of the monthly salary.
Hiring of Inclusion Allowance beneficiaries (art. 10)
Companies that hire beneficiaries of the new anti-poverty measure called the ‘Inclusion Allowance’ — which will replace the Citizenship Income in 2024 — are granted exemption from employers’ social security contributions (excluding INAIL premiums). The relief is equal to:
- 100% of the social security contributions, in case of employees hired with an open-ended employment contract (full-time or part-time) or apprenticeship contract or in case of conversion of fixed-term contracts into open-ended employment contracts. The incentive is available for a maximum of 12 months, up to a limit of €8,000 per year. Employers who dismiss the employee during the 24 months following the hiring date shall be required to return the relief used, unless the termination is for just cause or a justified reason;
- 50% of the social security contributions, in case of employees hired with a fixed-term or seasonal contract (full-time or part-time). Employers are eligible for the incentive for a maximum of 12 months and, in any case, for no longer than the duration of the employment relationship, up to a maximum of €4,000 per year.
In order to benefit from this relief, employers are expressly obliged to enter the job vacancy in the ‘Information System for Social and Labour Inclusion’ (SIISL) and to comply with the provisions governing regular social security contributions, the protection of working conditions and the compulsory recruitment of disabled persons (unless the worker hired is registered on the targeted employment lists) as well as with the collective bargaining agreements stipulated by the organisations that are comparatively more representative on a national level.
Safety at work (art. 14)
Changes have also been introduced to occupational health and safety regulations, including:
- the obligation to appoint a company doctor, not only for cases requiring health supervision, but also where required for risk assessment;
- the obligation of the company doctor to request that, during pre-employment check-ups, workers provide the health records issued by their previous employer, to enable the issuing of an opinion on suitability;
- the obligation to provide specific training if equipment requiring special knowledge or responsibilities is used in the company.
Expansion contract (art. 25)
Until year end, groups of companies with more than 1,000 employees that by 31 December 2022 signed expansion contracts (i.e. company collective agreements for accompanying older workers to retirement and for hiring new professionals) that have not yet been completed, can complete their implementation by rescheduling the termination of the employment relationships concerned within a period of 12 months following the original term of the contract, subject to the signing of a supplementary agreement in front of the Ministry of Labour.
Fringe benefits (art. 40)
The annual non-taxable limit of goods and services provided by employers to employees (including sums paid or reimbursed for the payment of household utility bills) is increased to €3,000, for the 2023 tax period, but only for employees with dependent children.
For the purposes of implementing this new welfare measure:
- employers must inform the Works Council, if any, in advance;
- workers must declare their entitlement, indicating their children’s tax code.
This new Decree introduces important new provisions regarding several areas in the world of employment. Our firm is ready to support companies in taking advantage of the opportunities provided and in correctly implementing the new legislation.
For further information: comunicazione@toffolettodeluca.it
