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Redundancy fund: what the Support Decree provides

Pending the reform of the social safety nets, the Draghi Government in the Support Decree various measures for companies and workers including the wage integration treatment which provides for changes with respect to the Conte 2 Government: here are the ones

Redundancy fund: what the Support Decree provides

While awaiting the repeatedly announced reform of the social safety nets, desirable in any case among the next measures of the Recovery Plan, the Draghi Government with the Legislative Decree 22 March 2021, n. 41, better known as the "Support Decree", has extended, among the measures to support companies and workers, the wage integration treatment which, although in the wake of what was already regulated by the previous Conte 2 Government, also provides for news on the regulatory front.

Il "Support Decree" in fact, it remodels the treatments of layoffs (ordinary and by way of derogation), ordinary allowance and special redundancy fund for agricultural workers (CISOA). In particular, the maximum number of weeks that can be requested by companies that suspend or reduce work activity as a result of the Covid-19 emergency is redetermined and, continuing on the logic of selectivity already outlined by the 2021 budget law, differentiates both the time in which it is possible to place the treatments and the number of weeks that can be requested.

Private employers who suspend or reduce work activity due to events attributable to the Covid-19 pandemic emergency can request ordinary redundancy fund (CIGO) for a maximum duration of 13 weeks in the period included between 1 April and 30 June 2021.

Instead, for the treatments of ordinary check (ASO) need wage supplementation fund notwithstanding (CIGD) employers can apply for access to the aforementioned measures for a maximum period of 28 weeks In the period between 1 April and 31 December 2021.

For these income support measures, no additional contribution is foreseen for employers who resort to such treatments.

ORDINARY SALARY INTEGRATION TREATMENTS

The new 13 weeks are added to the first 12 envisaged by the 2021 budget law, located in the first quarter of the year.

Therefore the Cigo weeks available are 25 structured as follows:

  • 12 weeks from January 1st to March 31st
  • 13 additional weeks from April 1st to June 30th
  • counter reset from 1st July

TREATMENTS OF ORDINARY CHECK AND STILL-EMPLOYMENT EARNINGS CASH

The new periods of ordinary check (paid by the FIS - Salary integration fund or bilateral solidarity funds) or CIG in derogation for COVID-19 of 28 weeks are added to those of 12 weeks already envisaged by the 2021 budget law and usable in the period between 1 January and 30 June 2021.

Considering that the regulatory system defined by the "support decree" does not provide for the attribution to the new 28 weeks of the previously requested and authorized integration periods, even if placed, in whole or in part, in periods after 1 April, it follows that the new 28-week treatment period should be considered additional to the previous 12 weeks, for total of 40 weeks available during 2021.

ORDINARY LAID-IN FUNCTION IN THE PRESENCE OF EXTRAORDINARY LAID-IN FUNCTION

Businesses which as of 23 March 2021 (entry into force of the "Support Decree") are in an extraordinary redundancy fund treatment and which have to further suspend the related program due to the interruption of production activity due to the emergency in place can access the ordinary cash treatment for Covid-19, for a maximum duration of 13 weeks and for the periods between 1 April and 30 June, provided that they fall within a sector for which there is the right to access the ordinary redundancy fund benefits.

BENEFICIARY WORKERS

The workers who can benefit from the ordinary and exceptional wage redundancy benefits or ordinary allowance are those employed by the requesting employer as of 23 March 2021.

UNEMPLOYMENT FUND IN THE AGRICULTURAL SECTOR (CISOA)

A further layoff period is also foreseen for workers in the agricultural sector 120 days between 1 April and 31 December 2021, following the suspension or reduction of work activity due to events attributable to the current pandemic.

The aforementioned treatment is granted as an exception to the limits of use referring to the individual worker and to the number of working days envisaged by current legislation.

new 120 days are added to the 90 already provided for by the 2021 budget law, with the caveat that these first 90 days must in any case be placed no later than 30 June 2021.

DEADLINE FOR SUBMISSION OF APPLICATIONS

The deadlines for sending the INPS applications relating to shock absorbers for Covid-19 remain the same as already envisaged, under penalty of forfeiture, by the 2021 budget law and by the latest decree-laws on the matter, i.e. by the end of the following month to that in which the period of suspension or reduction of work began.

TERMS FOR THE TRANSMISSION OF DATA

The deadlines for sending INPS the data necessary for payment or for the balance of the wage supplement for Covid-19, in the case of direct payment by the Institute, also remain fixed by the end of the following month to that in which the period of wage integration is located or within 30 days from the certified e-mail notification concerning the authorization, if this term is more favorable for the company.

If these terms have passed unnecessarily, the payment of the service and the charges connected to it remain the responsibility of the defaulting employer.

TERMS OF PAYMENT

For the payment methods of the cash register for Covid-19, the possibility for the company to anticipate the services and to adjust the amounts subsequently remains unchanged, as well as the possibility of requesting direct payment by the INPS with the possible advance of 40%, without obligation to produce documentation proving the company's financial difficulties.

For the ordinary allowance disbursed by the alternative bilateral solidarity funds in the craft and administration sectors, an allocation from the state budget of 1,100 million euros has been foreseen, which will be assigned to these Funds by decree of the Minister of Labor in concert with the Minister of Economy and Finance.

AIR TRANSPORT SOLIDARITY FUND

The supplementary services of the air transport and airport system solidarity fund are also extended to the CIG in derogation for Covid-19 requested by the air transport and airport management companies and by companies derived from them, as well as by the companies of the airport system.

Therefore, the derogating salary treatments requested and authorized for periods between 1 April and 31 December 2021 and for a maximum duration of 28 weeks may be integrated.

To this end, an implementation of the resources allocated to the specific Solidarity Fund of the sector has been envisaged for an amount of 186,7 million euros for 2021.

Finally, it should be remembered that a similar supplementary provision had already been established for the same companies by the 2021 budget law for the periods between 1 January and 30 June and for a maximum duration of 12 weeks.

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