Decree Law “Salva Infrazioni” (Saving Infringements): updates for fixed-term employment contracts 

Last Updated on September 26, 2024

Decree Law No. 131 of 16 September 2024 (the so-called Salva Infrazioni or “Saving Infringements”) has been published, which also concerns fixed-term employment contracts, following the indications of the infraction procedure with which the EU requested Italy to bring its domestic legislation into line with Directive 1999/70/EC on fixed-term employment.

Until now, in the private sector, pursuant to Article 28 of Legislative Decree No. 81/2015, if an employee obtains in court the conversion of a fixed-term employment contract into an open-ended one, they are entitled, for the period between the expiry of the term and the date of the ruling by which the judge ordered the reestablishment of the relationship, to an all-inclusive indemnity ranging from a minimum of 2.5 and a maximum of 12 months’ salary. Calculation of said amount shall take into account the number of employees, the size of the business, the employee’s length of service and the conduct and conditions of the parties, and may be reduced by half in the event of collective provisions providing for stabilisation procedures. 

Under the Salva Infrazioni Decree Law, judges may now award more than 12 months’ salary as indemnity if the employee proves to have suffered greater damage. The possibility for collective agreements to reduce the amount of the damages has also been eliminated.

The measure also affects the current guidelines regarding fixed-term employment in the public sector. It in fact amends Article 36 of Legislative Decree No. 165/2001, according to which a violation of the regulations relating to recruitment or employment of workers — without prejudice to the impossibility of establishing an open-ended relationship in the public administration — entitles workers to compensation for damages. It is now expressly provided that, in the case of abuse in the use of a succession of fixed-term employment contracts or relationships, the indemnity shall be between a minimum of 4 and a maximum of 24 months’ salary, depending on the seriousness of the violation also based on the number of contracts between the parties and the overall duration of the relationship, without prejudice to the employee’s right to prove greater damage.

In essence, therefore, in both the private and public sectors, in the presence of unlawful fixed-term employment contracts, judges may exceed the maximum amount of the indemnity provided for by law, provided that the worker proves the greater damage suffered.

Toffoletto De Luca Tamajo is at your disposal for any clarification you may need.

Per maggiori informazioni: comunicazione@toffolettodeluca.it