JOBS ACT: THE NEW (DELEGATED) LAW

The labour market reform, launched by Prime Minister Matteo Renzi, has become law yesterday night with the vote of confidence and the final approval by the Senate.


It is a large legislative delegation to be integrated with further measures (delegate decrees), until the adoption of which the real scope and the objective quality of the reform will be hard to figure out.

Set out below the main principles that the national legislature is required to regulate:

Growing protection and article 18.

- Reducing the contractual forms from the current fourty to a main one: a single permanent contract and the growing protection contract (“contratto a tutele crescenti”).
- Removal of the reintegration measure under the Article 18 of the Law n. 300/1970, as subsequently amended, except for minor unlawful aspects of the withdrawal (discriminatory and disciplinary dismissal);
- Compensation for the other withdrawal’s cases, based on the duration of the previous employment relationship;
- Tax benefits on the sums received by the employee in the event of transaction or absence of judicial opposition to the dismissal;
- Downgrading for technical and organisational reasons of the company.

Wages guarantee fund and income suppot measures.

- Removal of the Wages Guarantee Fund in derogation (“CID”);
- Funding of an unemployment support measures (Naspi) for all categories of workers (on the sole condition of having worked for at least three months before the dismissal) and based on the duration of the terminated employment relationship (maximum indemnity period of 24 months);
- Funding of an unemployment benefit for the workers out of Naspi.

Blank resignations. 

- New procedure to avoid the resignation, as a surrogate of the inappropriate procedure laid down by the Fornero Law.

Single agency and youth guarantee.

- Provision and funding of a system rapidity ensuring the supply of work to young people, trainees, students and unemployed people.

Remote control options.

- Enlargement of the hypothesis of remote control “on the facilities and work resources”, without prejudice to individual rights.

Maternity

- Granting maternity allowance to all the categories, involved in the provisions about blanck resignations.

Sharing annual leave. 

- Introduction of an option for the workers to share a part of their annual leave periods to colleagues with minor severely ill children.