Share

Labor reform: here are the essential points

FACTSHEET - All the news on the labor reform that has become law: dismissals and article 18, project contracts and VAT numbers, apprenticeships and internships, ASPI and basic wages - Confindustria, Squinzi: "A revision is needed" - Fornero: "Available at changes” – Download the complete text of the amendments in Pdf.

Labor reform: here are the essential points

Labor reform has become law. In extremis, less than 24 hours from the start of the next EU Council, but in any case in time to allow Prime Minister Mario Monti to arrive in Brussels with one more card to play. The Premier was satisfied: the Government's credibility and its bargaining power at the European negotiating table are today strengthened by Montecitorio.

After the ok already arrived from the Senate, the Chamber has given the green light to four trusts on as many maxi-amendments presented by the Executive, which has chosen to unpack the entire measure in this way to speed up approval times.

"No one has ever claimed to have the key in their pocket to solve the problems afflicting the Italian labor market - said the minister Elsa Fornero -. I also understand the sacrifice made by the Chamber for this limitation of the discussion imposed by the European agenda. The Government is willing to make changes that will be discussed, there are no untouchables. Now it is important to start this reform which contains a set of positive elements”. In particular, the Executive has undertaken to intervene again in terms of redundancies, entry flexibility and social shock absorbers.

At the forefront of the dissidents is the president of Confindustria, George Squinzi, supported on this front by the PDL. “Peace has not yet been made with Minister Fornero – underlined the number one of the industrialists -. The reform has not improved outward flexibility, if not only marginally, and has worsened inward flexibility. So if it has to be approved by June 28, that's fine with me, but then we'll definitely have to start a review ”.

Albeit with different motivations, even the economic manager of the Pd, Stefano Fassina, believes that “the Fornero provision is not good. There are some points that need to be changed."

Let us now see in detail what are the fundamental innovations contained in the labor reform.

 

ARTICLE 18

The reform revises article 18 of the Workers' Statute, differentiating treatment according to the type of dismissal. The legislation, until now applicable only to companies with over 15 employees, will now be applicable in all cases.

Cheap layoffs

It was definitely that the most controversial chapter of the whole reform. In the first formulation, the Government had not envisaged any possibility of reinstatement for workers dismissed unjustly for economic reasons, but only an indemnity of between 15 and 27 months. In the definitive versionOn the other hand, the judge – when he does not consider the reasons provided by the company valid – will be able to choose whether to impose the payment of an indemnity or the return of the job.

Disciplinary dismissals

This category also includes the conduct of those workers who, with Brunetti-like memory, are usually defined as "slackers". Therefore, not only those who beat their colleagues or steal from the company, but also those who do not fulfill their obligations under their contract. Until now, the judge's behavior in these cases was identical to that for economic dismissals: neither reinstatement nor compensation if the company is right, reinstatement if the worker is right, who is offered the alternative option of choose compensation. From today, however, the judge will decide from time to time for compensation or reinstatement.

There is no longer any stoppage in the event of illness, to avoid fraud by workers who could pretend to be ill in order to slow down the procedure. Except in cases of maternity leave or accident at work, all disciplinary dismissals become effective "from the day of the communication with which the procedure was started, without prejudice to the worker's right to advance notice or the relative replacement indemnity".

Discriminatory layoffs

In this case, nothing changes. The rule remains exactly the one already provided for by article 18 of the Workers' Statute: if the worker manages to demonstrate that he has been discriminated against by the company (for religious, political, racial, sexual orientation or other reasons), the judge must annul dismissal and impose reinstatement.

 

CONTRACTS

The indefinite time

"The goal is to make the permanent employee contract the dominant one that begins with the apprenticeship phase, which we intend to give emphasis to," explained Minister Fornero. Basically, the bet is to encourage permanent hiring by making precarious contracts more expensive (Co.co.co and Co.co.pro) and rewarding companies that stabilize workers, but also by making layoffs easier, in particular so that companies no longer have any alibi for not hiring.

The apprenticeship

The minimum duration of the contract is six months, but the canonical one reaches three years. At the end of this period, the crossroads: the company will be able to choose whether to close the relationship with the apprentice or stabilize it with a permanent contract. However, the right to retain apprentices will only be granted to those companies which have hired at least 50% of their apprentices in the last three years. For the first three years after the entry into force of the law, however, this quota drops to 30%. Abolish free internships.

The fixed time

The first fixed-term contract that can be stipulated without reason can last for one year. The mandatory breaks between one contract and another go from 10 to 60 days for employment relationships lasting less than 6 months and from 20 to 90 days for longer ones. In the case of specific organizational processes (such as start-ups, new product launches, technological changes, second phases of projects) collective agreements may provide for a reduction in the 'pause' period (20-30 days instead of 60-90 days) .

The contribution rate on these contracts is raised by 1,4% and the extra proceeds will be used to finance the new Aspi. However, there is a stabilization bonus: in the event of permanent employment, the rate is returned to the companies for an amount equal to six months of contributions.

The insertion contract disappears, while for the co.co.pro an increase in the INPS contribution rate is envisaged, in order to bring it closer to that envisaged for employees (at 33% in 2018). Furthermore, if the precise definition of the project is missing in the contract, the permanent contract will automatically start.

VAT numbers

It will be assumed that only VAT numbers with an annual gross income of at least 18 thousand euros are true. For those who mask a subordinate employment relationship comes the obligation to hire. However, this rule will not be valid immediately, but only after a year from the entry into force of the reform. This is a concession from the Government to the requests of the entrepreneurs. The risk indicators that suggest a false VAT number are the duration of the collaboration, which must not go beyond eight months, and the consideration paid, which must not be more than 80% of that of employees and co.co. co. Furthermore, the worker must not have a fixed position in the company. 

 

SOCIAL SHOCK ABSORBERS

Aspi, the new unemployment benefit

The social insurance for employment will gradually replace all forms of mobility and will become fully operational in 2017. It will apply to all employees with a fixed-term contract, but to be entitled to it, you must have at least two years of insurance seniority and 52 working weeks in the last two years. The amount will be equal to 75% of wages up to 1.150 and 25% beyond this threshold, but the maximum allowance will be 1.119 euros gross per month. The standard duration of treatment will be 12 months: only for those over 55 it will reach 18 months. The contribution rate will be 1,3% (2,7% for temporary workers).

The mini-Aspi

It will be reserved for those who have not matured the requirements for the traditional Aspi and will have a lower amount than this. Precarious workers will not be entitled to it, but only those with a subordinate employment contract.

Base salary for project contracts

A sort of basic salary is coming for co.co.pro. It will be calculated with reference to the minimum wages of employees for similar figures.

One-off payment for parasubordinates

For a three-year experimental phase, si strengthens the current one-off payment for para-subordinates who lose their jobs. For example, those who have worked for 6 months will be able to have over 6 thousand euros.

Solidarity fund for the over 58s

With the new pension reform, one can no longer hope to retire from work before the age of 66-67. On the other hand, those who lose their jobs and are already old age have very little hope of finding another one. For these people comes a solidarity fund covered by companies, which will thus use at least part of the rate they will save on mobility allowances, destined to disappear.

Against blank resignations for women

During maternity and up to the first three years of the child's life, resignations and consensual terminations of the contract will have to be examined by the Ministry of Labour. The abuses will be punished with fines ranging from 5 to 30 euros.


Attachments: Reform_Work.pdf

comments