Italy: businesses will be able to use the ‘Cassa Integrazione’ (short time work) without interruption

On 15 June, Italy’s Council of Ministers approved a decree-law guaranteeing the continuity of the ‘Cassa Integrazione’ (CIG redundancy fund, short time work scheme) that was set up to cope with Covid-19, and as well as derogating from the usual mechanisms. The decree-laws ‘Cura Italia’ (March 2020) and ‘Relaunch’ (May 2020) (c.f. article No. 11726 and No. 11936) have provided finance for a total of 18 weeks of partial unemployment, with 4 of those earmarked for September and October. Many companies have found themselves in financial difficulties including for example those having to halt business in March, which are now operating at a slowdown, and which without the short time work measures would have had to otherwise close down – all the more so since the ban on employment dismissal is in force until August. The decree adopted on 15 June will allow companies that have completed the first 14 weeks of the ‘Cassa Integrazione’ to immediately benefit from the remaining 4 weeks of finance, without having to wait until 01 September. The Cgil, Cisl and Uil trade unions have welcomed the measure that they believe is a step in the right direction, ‘allowing thousands of workers to benefit from the continuity of income support,’ as the Uil union explains. However, the unions point out that this ‘continuity’ may not be sufficient and they are calling for the CIG to be extended until the end of the year. According to data from the INPS (social security and pensions institute that manages the CIG), at the beginning of June potential CIG beneficiary numbers exceeded 8.4 million workers.