ARTICLE
6 February 2004

Drastic Reforms on Employment and Labor Law in Italy

On 5 February the Italian Parliament issued one of the most important statutes of the last 30 years. This «Legge delega», based on the White Book by the late Marco Biagi, allows the Government to introduce several new laws within the course of one year
Italy Employment and HR

On 5 February the Italian Parliament issued one of the most important statutes of the last 30 years. This «Legge delega», based on the White Book by the late Marco Biagi, allows the Government to introduce several new laws within the course of one year.

The most important changes include:

  • Project-based work - New self-employment contracts - Self-employment contracts have to be set up for a limited period or a specific project. If the work exceeds a certain number of hours per week, these collaborators will receive protection for maternity leave, sickness as well as work-related accidents. The new contracts have to be in writing and must include 1) the duration of the contract, 2) the project to be carried out, 3) the payment, and 4) a clause that the work has to be carried out personally and without further subordination. Certification of real self-employment work can be issued by public bodies in advance.
  • Workers when you need them - Job on call - The new laws give companies more flexibility for peak times. Jobs on call are employment contracts in which the employee is required to work only when requested, «on call», and remains at the disposal of the company until the next request. The main features of these contracts are 1) the intermittence and discontinuity of the work and 2) a compensation for the employee’s availability between requests in addition to his salary for the activity carried out.
  • Occasional work - Self-employment contracts as «occasional work» can be chosen for certain kinds of work. This occasional work must not exceed 30 days in one year with the same employer and the total income has to remain below Euro 5,000.
  • One job, one salary - Job-sharing - Italy introduces the concept of sharing both job and salary. Whereas part-time work asks for an individual contract for each employee, job-sharing establishes one employment contract with two or more employees.
  • More flexibility for part-time jobs - The new law foresees more flexible use of part-timers and allows overtime.

The «Legge delega» also previews the cancellation of Law 1369 of 1960, which currently forbids the use of employees not directly hired by the company (with the exception of temporary work). Also new is staff leasing, which allows «leasing» of third party employees for an unlimited time.

The new statutes, still to be issued by the Government, will specify the limits and definitions under which these regulations apply. Currently, all of the above new possibilities can be used in practice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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