Italy: as expected, the plan encouraging companies to regularize illegal labour failed

Among the means the Prodi government carried out to fight against illegal labour, the legal provision of Finance Act 2007 instigating companies to regularize workers in compensation for a reduction of contributions and the guarantee that they would not be inspected for a whole year, was hardly used. On the other hand, strengthening inspection obtained better results. (Ref. 070727)
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An instigating plan. To benefit from the provision “emersione lavoro irregolare” of Finance Act 2007 and valid until September 30, “irregular” companies have to conclude an agreement with trade union organizations in order to legalize their situation with the workers. As a counterpart, they only have to pay for two thirds of the social contributions due for the period which needs to be regularized (which cannot exceed five years) and they are amnestied from the administrative sanctions usually

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