Our expert in Italy details a new form of rapid settlement that
has been introduced into the legal system.
The enactment of the Legislative Decree on Increased Protection
Open-Ended Contracts has seen regulation on terminations partially
revised as per Art. 18 of the Workers' Statute or Law no.
It applies only to employees who began work with a company on 7
March 2015 or, in other special cases for example, all workers at a
company that had more than 15 employees after 7 March 2015; in the
case of an intern, after the training period, after 7 March
The settlement offer must occur within 60 days from the
termination or within the term given to the employee to challenge
the employer's termination notice extra-judicially.
In essence, the employer, in order to avoid challenges to the
termination, may offer the employee, as settlement, "an amount
equal to 1 month of remuneration to calculate the severance pay for
each year of service with an amount of no less than two months'
remuneration but no more than eighteen months, paid to the employee
by cashier's cheque".
This agreement must be drafted in a protected setting. In the
case company employees are not covered by the provision of Art. 18,
Law no. 300/70 (normally companies with less than 15 employees),
the amounts offered shall be halved with the maximum amount not
exceeding 6 months' salary.
With the recent note no. 2788/15, the Ministry of Labour has
spoken on a new communication requirement for the employer
regarding this settlement process.
In fact, it wanted to monitor the trend of this type of
settlement in the future and, to do this, it placed a further
burden on the employer. Within 5 days of the termination, the
company must send the competent Employment Centre the UniLav
Employment Termination form using the online platform. Moreover,
with these new features, the company will be required to send,
within 65 days of the termination (60 days for the procedure plus 5
days to comply) another notice to the Employment Departments
specifying whether the settlement occurred.
After reading the regulatory texts, it is not clear whether this
additional notice is always required or if it is only required if
the settlement takes place, regardless of whether it is completed,
and if this settlement must only be opened or must actually be
completed within 60 days.
We look forward to receiving clarifications from the Ministry on
this point considering the additional notice is subject to
pecuniary administration sanctions ranging from €100.00 to
€500.00 for each employee involved.
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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