The links of the Dignità sui decree are loosened term contracts, with the introduction of new reasons and reserving ample space for negotiation. The Work decree, approved by the Meloni government last year May 1, has introduced very important innovations and among the most discussed and debated interventions there is the one concerning the modification of the rule on fixed-term contracts, but what changes?
The confirmation remains fixed-term contract of 12 months which can be established without recourse to reasons, i.e. extraordinary situations for which contracts of this type are necessary. Once the 12 months have passed, it can be extended or renewed in the presence of certain reasons, which allow the term contracts to be "extended" beyond 12 months, but still without exceeding 24 months. Now with the Labor decree these reasons are being modified.
Fixed-term contract: new reasons, old dilemmas
The need to justify the termination of an employment contract is a long and debated story in our country, which began with the Law 230 / 1962 which introduced the grounds for recourse to the fixed-term contract. Since then, the law has been amended several times. In 2001, all the causes were merged, giving life to the so-called "causalone" (technical, organizational or production reasons) which, with its generic nature, has produced a lot of confusion (and controversy). In 2015, the Poletti decree abolished the need for "justification", entrusting the prevention of abuses to the provision of quantitative and duration limits for fixed-term contracts. And so far so good. In 2018, the dignity decree has reworked the matter, not only reintroducing the reasons for relationships beyond 12 months and for renewals, but also making them more rigid than the original ones: temporary and objective needs, extraneous to ordinary activity, or needs to replace other workers or connected to temporary, significant and non-programmable increases in ordinary activities. In 2021, in the midst of the Covid 19 pandemic, the specific needs envisaged by collective agreements were added to the reasons for the Dignità̀ decree in order to reconcile temporary employment needs with the uncertainties related to the labor market of that period, thus opening the door to a flexibilization.
even the Meloni government decided to take this path. Not eliminating the causal system, but entrusting its management to collective agreements.
Fixed-term contracts, what changes with the Work decree?
The Labor decree introduces three causes for the renewal of fixed-term contracts after the expiry of the first 12 months. And I'm:
- cases provided for by national, territorial or company collective agreements stipulated by the most representative trade union associations;
- needs of a technical, organizational or production nature, identified by the parties, in the event of no collective bargaining, by 31 December 2024; after this date (unless the deadline is extended), reference will only have to be made to the cases elaborated by the collective bargaining agreement.
- replacement of other workers.
In essence, the causes become less stringent and the renewal will not need exceptional reasons, such as that linked, for example, to a temporary increase in production activity. Therefore, in the absence of an intervention by the collective bargaining, the identification of needs is left to the parties, without the need for contract certification, even if on a temporary basis until 31 December 2024. However, the reason remains identical which provides for the possibility of renewing the fixed-term contract beyond the 12-month deadline to replace another worker, just as the maximum limit of 24 months is not touched.
How long does a term contract last?
The Labor decree, as mentioned, provides that the fixed-term contract can be extended only if the duration initial contract is less than 24 months and for a maximum of 4 times, regardless of the number of contracts. If the fixed-term contract is not transformed into an open-ended contract, theindemnification for non-recruitment: an amount of 500 € in favor of workers hired on a fixed-term basis with a 24-month contract, with the exception of seasonal workers. The one-off payment is paid as welfare paid by the employer. Article 23 of the draft provision provides for it
Are the new rules beneficial?
By softening the legislation on fixed-term contracts, the new rules are certainly advantageous for employers, as they will have the possibility to extend hirings, even if not beyond 24 months, without stringent reasons. And what changes for workers with the new rules on fixed-term contracts? The opposition and the trade unions have instead already harshly criticized the measure, pointing to the new causes as the future cause of theincrease in precariousness. We will see.
