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Government measures regarding employment and income protection introduced by the Decree-law no. 18 of March 17th 2020.

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21/03/2020

Prohibition of dismissal justified by an objective reason and end of collective firing.

With the Decree-law no. 18 of March 17th, 2020, the measures taken following the sanitary emergency caused by the Covid-19 were extended to the whole national territory. This new (for the time being) legal and administrative regime develops into multiple provisions, which articulate in different fields of action. We’ll now analyze and present the new norms regarding the subordinate and parasubordined labor law, which must be immediately put into practice as they have come instantly into force. 

This new and latest Decree-law modifies the legislation of some institutes, deeply affecting the amount of time workers have to act in their defense. 

Among the latest measures adopted by the Government, the disposition that stands out the most, thanks to its relevance and innovation, bans companies from applying collective redundancy procedures engaged from February 2020 and from engaging new ones. All the collective redundancy procedures which have yet to be concluded must be immediately suspended. This means that during this period of time companies are not allowed to perform collective firings. This blockade will last 60 days, starting from March 17th up to May 16th 2020.. 

All companies, regardless of the number of workers employed into service, cannot implement individual or collective dismissals motivated by objective demands connected to the work organization, to the economic conditions and much less to the difficulties which have risen as a consequence of the sanitary emergency. It appears clear that this norm strongly protects the weaker party of the employment relationship, having a considerable social and economic impact. 

Firing is allowed only if motivated by an extremely serious dereliction of contractual duties. Disciplinary dismissal is also allowed for just cause or for justified subjective reasons. 

Workers with a fixed-term contract are not affected by this disposition. Before the expiration of the contract these workers can’t be fired, apart from just cause motives and justified subjective reasons. While waiting for the contract’s end, companies can resort to agile working, administrative leave (whether paid or unpaid), paid time off or to a multi-period working schedule. 

The Decree-law implements redundancy funds for all companies, no matter the number of employees. In order to have access to this layoff, companies must undergo trade-union consultation procedures. This consultation procedure is not necessary for exempted companies with up to 5 employees. 

New norms have been adopted regarding ordinary redundancy funds, making them faster, easier and less bureaucratized. 

Furthermore, the Decree-law includes a plurality of measures which protect weaker and socially disadvantaged subjects: 

- Parental leave with or without allowance for whoever has children younger than 12 and for those with children between 12 and 16 

- 12 extra days of remunerated permits for who is benefitting from the 104/1992 law 

- Quarantine must be considered a full-fledged legal illness both in an active-surveillance case or in a self-isolation case by staying home. 

- Granting an allowance to coordinated and ongoing workers which amounts to 600 euros 

- Extension of the due date to present the application for unemployment and suspension of terms concerning social security and assistance matters. 

- Obligation to resort to agile work for people with disabilities and relatives. 

- Suspension of all deadlines regarding the appeals of dismissals and withdrawal of legal proceedings. 

- A 100 euro bonus (free from taxes and contributions) for all the workers employed in March 2020, whose gross income is lower than 40 thousand euros. 

In order to better comprehend the new dispositions we have annexed the provisions with regards only to employment of the new Decree-law no. 18 of March 17th 2020 .

Traduzione di Laura Pettinato Devetachi


In Italy, employees were protected by art. 18 of act n. 300/1970 (usually called “employees statue”), until 2014: workers unjustly fired could sue their employer for being reinstated to their job and for damages (salaries from firing to reinstating). So, if the judge had declared unlawful dismissal, companies had to pay years of salary and social security contribution, even if they didn’t’ get any job performance by fired employees (Italian trials were really slow). From 2015, this won’t happen anymore. In case of unlawful dismissal, employers will only have to pay damages to workers. This compensation will be reasonable: from 4 to 24 months of salary (2 months per year of working). Employees won’t have the right to be reinstated to their job, except for specific situations. So, if he doesn’t appreciate the worker, the employer won’t be obliged to readmit him in his company (except for racial, political and religious discrimination). According to new acts, civil trials are faster, thanks to their computerization. Now payment orders can be issued in a few days. Before, it took several months. Besides, debtors that refuse payments are obliged to pay default interest of 9%. So they have no incentive to delay payments: this would be too expensive.  Creditors can ask the court for an order to search in public records debtor’s goods and current accounts to be attached (now access to records is allowed only to specialized agencies) . This new procedural instrument allows to attack debtor's assets more easily. Creditors will be satisfied effectively and more quickly. In this section of the website, we are going to show all this brandnew rules.