Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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COVID-19: Short-time Work

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

To address the COVID-19 pandemic, Italy enacted various short-time work programs that allow employers to reduce employees’ working hours down to zero hours per week while the employee receives up to 80% of the lost salary (with a cap of approx. EUR 1,100 monthly) paid by the Social Security Authority (INPS). In August, these programs were modified to provide an additional 18 weeks of short-time work, starting July 13 through December 31, 2020. The first nine weeks are available to employers at no cost to cover short-time work after July 12, 2020. The additional nine weeks are available to employers for whom the first nine weeks had already been fully authorized and require a social contribution of up to 18% for each covered employee’s salary. Employers who registered a downturn of 20% or higher in revenues during the first quarter of 2020 compared to the same period in the previous year can tap into the additional nine weeks of short-time work at no cost.

COVID-19: Exemption to the Social Security Contribution

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

Under a new Decree No. 104/2020, employers may be exempted from paying mandatory social security contributions for employees as an alternative to the short-time work programs. Specifically, employers who benefited from the short-time work programs during May and June 2020 but do not seek to use additional short-time weeks before December 2020, can apply for this exemption. Employees subject to this measure are still eligible to receive their full social contribution benefits from the Italian Social Security Authority (INPS).

COVID-19: Individual and Collective Dismissals

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

At the onset of the pandemic, Italy enacted a dismissal ban covering individual and collective dismissals based on economic reasons, effective March 17 through August 17, 2020. Decree No. 104/2020, issued in August, extended the dismissal ban, except that it modified the duration depending on the use of short-time work programs. Specifically, the dismissal moratorium lasts until the employer is able to use the 18 weeks of short-time work or receive an exemption from the social contribution. If an employer does not use either of these measures, the dismissal ban would extend through December 31, 2020.

COVID-19: Fixed-Term Contracts

New Order or Decree

Authors: Carlo Majer, Partner and Nicola Comelli, Associate – Littler Italy

Under Decree No. 104/2020, which was passed in August 2020, employers can renew or extend fixed-term employment contracts until December 31, 2020, even in the absence of the specific “causes” that would otherwise be mandatory in these cases. Such contracts can be extended only once and for a maximum of 12 months, without prejudice to the maximum total duration of 24 months. The objective of this measure is to support restarting business activities to recover from the COVID-19 health emergency.