The recently approved Decree Law N ° 76/2013 (the "Employment Package") is a new and deep job market reform.

The measures approved by the government, “to the employment promotion, specially youth employment, and social cohesion” are particularly interesting for the innovative start-ups, which are directly or indirectly affected by many interventions in different fields (financial, corporate, contractual), aimed to facilitate their establishment and operation.

The new start-up

The new provisions introduce more flexible conditions to access the category of new companies interested in simplifications and tax reduction. In favor of these companies, (also for the ones with a cooperative structure), funds for about 160 million euro have been allocated.

The law also provides the extension of the simplified model of S.r.l. (Società a Responsabilità Limitata) for entrepreneurs who are more than 35 years old (so-called Società a Responsabilità Limitata semplificata).

The obligation to hold for two years the majority of the shares and voting rights, previously imposed to the company members, has been abolished.

The mandatory percentage of expenses for research and development of the greater value between cost and total value of production of innovative start-up has been reduced from 20% to 15%, and the requirements concerning the educational qualifications of founding partners have been attenuated.

In the context of the overall reform of the institution, important steps have to be emphasized regarding subordinate and fixed-term employment in innovative start-ups. This institution is regulated and introduced by 'Article 28 of Decree 179/2012, converted by Law 221/2012.

As known, these companies may exceptionally take advantage of an “acausal” contract, which has a minimum duration of six months.

This involves that, if an innovative start-up hires a new employee, who has to carry out activities related to the corporate purpose of the company, the reasons regarding the technical  aspects, production, organization or replacement are considered presumptively demonstrated and no further proof is required.

Another incentive allows, in case of hirings made within the maximum time frame allowed of 36 months, extendable to 48, that successive fixed-term contracts may be entered into without complying with the minimum intervals required by Article 5, paragraph 3, of Legislative Decree 368/2001.

Finally, new funding measures for self-employment (80 million) and for the young people cooperatives involved in the enhancement of public goods and social inclusion (80 million), with access to well-repayable contributions and subsidized loans, have been promoted.

The Employment Package

The decree affects many other fields.

Rules concerning the regulation of the fixed-term employment, the kind of collaboration, the incentives for the recruitment of young people and trainees are very interesting.

Fixed-term contract:

The system of intervals required between the conclusion of a fixed-term contract and the following one has been modified again: the break at 10/20 days, depending on length of contract, has been reintroduced and the terms set by Fornero Law just one year ago have been abrogated.

Apprenticeship:

The new measures will facilitate the access to this type of contract, reducing the charge of the individual training plan.

Recruitment incentives:

An unemployed person who is receiving the Aspi - the new unemployment benefits introduced by Fornero Law -becomes a very appealing collaborator since the new employer can benefit of a monthly bonus of 50% on the remaining Aspi not yet received.

In addition, the employer, will enjoy an incentive in terms of decontribution for the recruitment of people between 18 and 29 years old,  until 30 June 2015.

This incentive, enjoyed for a period of 18 months, will amount to one third of the gross monthly salary and the employer will benefit through a contributory balance in the monthly declarations.

All said is valid in case of new hiring.

However, if the employer decides to convert the contract from fixed-term to “indeterminate” (increasing the number of its employees), he will enjoy also the benefits illustrated above for a 12-month period.

Job on call:

The legislator decides, moreover, to revise again and revive the institution of intermittent work.

In particular, according to the law, this kind of contract must provide a maximum of 400 working days over the course of three years. If this limit is passed, the contract  changes into a “permanent and full-time”. employment contract.

Project collaboration:

Drafting a work project, the company shall avoid to assign tasks merely “executive and ripetitive”, under penalty of a declaration of nullity of the same and the conversion of the contract in an indeterminate one.

Further, the protection of the validation of the resignation has been extended to this category of contract,.

Internship:

The new law provides the disbursement of funds to finance internships for young people, totally inactive (so-called. "NEET"), which originate a contribution of about 3000 euro for a period of six months.

This measure will be implemented thanks to the cooperation of Universities and research bodies.

Other funds, for approximately EUR 10.6 million, will finance the curricular internships for university students at public and private institutions. Students shall obtain reimbursement from the State and from the institutions.

Even in this case the University Ministry and Universities will play a key role in the success of the initiative.

Obligations of communication between the company and DTL (territorial job direction):

The new law requires stricter obligations of communication for companies, which have to inform frequently the DTL about new hires, and subsequent changes in the course of employment.

These activities will be appropriately and specifically followed by the trasmission of the dossiers to the ministerial offices.

As we just examined, the new labor reform is a further attempt to give positive impetus to the job market, in particular referring to innovative start-ups.

BLB LAW FIRM job department in Milan and Rome, with the project "BLB START-UP", supports  new young entrepreneurs, sharing their projects and enthusiasm.

Avv. Alberto Stocco

Avv. Nicolino Gentile