Our payroll expert from Milan talks us through the
recent developments in Italian payroll legislation.
Businesses in Italy are set to receive new financial incentives
if they employ someone registered with the Youth Employment
Initiative National Operational Program.
The incentive came in to effect on 3 October 2014 and will
remain in place until 30 June 2017.
The main purpose of the incentive is to kick start the European
Youth Employment Initiative.
Potential employees must be aged between 15 and 29 and have
compulsory schooling completed (if aged under 18) and not be
currently employed or enrolled in any study or training
The incentive applies to:
open ended hiring contracts
temporary hiring contracts, whose
term is initially envisaged for a period of at least six
temporary hiring contract, whose term
is initially envisaged for a period of at least 12 months
part time work with working hours of
at least 60% of the normal full time hours; and
hiring contracts as working members
of cooperatives, if appointed with a subordinate employment
The incentive does not apply to:
job shares; and
In addition to the above, the incentive does not apply to staff
leasing hiring contracts if the staff leasing agency benefits in
relation to hiring contracts from remuneration for employment.
The financial amount of the incentive according to the type of
hiring contract and profiling class of the employee is listed
Profile category of employees
A) temporary hiring contracts (even
through staff leasing) for at least 6 months
B) temporary hiring contracts (even
through staff leasing) for at least 12 months
C) open ended hiring contracts (even
through staff leasing)
For temporary contracts lasting less than 6 months the incentive
will be provided in 6 equal monthly installments.
For temporary contracts lasting over 12 months and permanent
contracts the incentive will be provided in 12 equal monthly
Other recent payroll news includes:
The Istituto Nazionale della
Previdenza Sociale (INPS) announced that employees who are absent
due to sickness and who wish to return to work earlier than their
intended return date will only be allowed to return if a suitable
medical certificate is provided by their physician.
The Ministry of Transport has called
for compulsory registration of company cars assigned for a period
of over 30 days. This comes into force on November 3, 2014 and is
only for cars assigned from this date onwards. This does not relate
to companies that provide transport services or that are obliged to
have a national electronic register license.
The Ministry of Labour has placed
numerical limits on temporary contracts. The limits will be
assessed by the National Collective Labour Agreement on a
company's stable workforce and any existing temporary
contracts. In the event of a violation against the limit an
administrative penalty will apply including the risk of not being
able to stipulate new temporary contracts the following year.
This content was originally published in the TMF Milan
October payroll newsletter
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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