A new Italian reform brings more flexibility to the
labour market
Publication Date: 12 June 2014 | Author(s): Valeria Moro...
Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com
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A new Italian reform brings more flexibility to the labour market

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On May 16, 2014, the Italian government approved a new labour reform (no. 78/2014), which will bring major changes with respect to fixed-term contracts, temporary agency work and apprenticeships. Valeria Morosini from our Italian member firm Toffoletto De Luca Tamajo e Soci outlines the key changes.

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A new Italian reform brings more flexibility to the labour market

  1. 1. A new Italian reform brings more flexibility to the labour market Publication Date: 12 June 2014 | Author(s): Valeria Morosini Member Firm(s): Toffoletto De Luca Tamajo e Soci Country: Italy On May 16, 2014, the Italian government approved a new labour reform (no. 78/2014), which will bring major changes with respect to fixed-term contracts, temporary agency work and apprenticeships. Fixed-term contracts: • No justification for fixed-term contracts is required as of March 21, 2014. • The contract can be extended a maximum of 5 times within a maximum period of 36 months. • The number of fixed-term employees cannot exceed 20% of the employer’s permanent employees employed on January 1st of the year of recruitment. Exceeding the limit results in administrative penalties between 20-50%, depending on the number of employees involved. • For certain types of fixed-term contracts, such as those to replace employees on leave, exceptions to the cap can apply. • Transitional measures to aid in the observation of the 20% limit will be in place until December 31, 2014. • Upon expiry of a fixed-term contract, and within a certain time period, the employee can apply for an available permanent hiring with a priority right. Temporary Agency Work: • It is no longer necessary to justify temporary agency work. • Time limits (36 months) and cap (20%) do not apply to fixed-term agency contracts. Apprenticeship contracts (apprendistato): • Only an individual training plan, which can be prepared in summary form, must be mentioned in the apprenticeship contract. • Employers with more than 50 employees must retain, as permanent employees, at least 20% of the apprentices, if they wish to engage more apprentices in the future. A new era has begun for Italian employers with fixed term contracts that are much more accessible and no longer risky. Stay tuned, as this is just the beginning; deeper reforms are in the pipeline and expected to be adopted in the near future.
  2. 2. Originally posted on the Ius Laboris Knowledge Base: www.globalhrlaw.com About Ius Laboris Ius Laboris is an alliance of law firms offering employers cross-border employment and pensions law advice. It has 1,300 specialist HR lawyers in over 150 cities and 44 countries. Ius Laboris offers access to the best local HR law experts in one global team with 20% more ranked employment lawyers (Chambers & Partners, November 2013) than any other global HR legal services organisation. Further, Ius Laboris has 50% more recommended lawyers than its nearest rival in a recent survey in PLC's employment law guide. Clients include many household names as well as multinational companies in all sectors ranging from energy, retail and technology to pharmaceuticals. For more information on Ius Laboris, please visit iuslaboris.com.

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