On 02 July, Giuseppe Conte’s government adopted the ‘Dignity Decree’, the new executive’s first major reform that includes limiting recourse to fixed term employment contracts, raising employment termination compensation, as well as imposing fines on companies that outsource their operations. Employers have roundly criticized what they call a backward step by the surprise populist government, recently formed in June and comprising both the Five Star Movement (M5S) and the extreme right Northern League.
So, going forward, fixed term employment contracts will only be operational for be 24 months vs. 36 months previously. Companies will only be allowed to renew fixed-term employment contracts four times instead of five and each time they are renewed the relevant social contribution payments will be raised half a percentage point. If the first fixed-term contact, which can only have a maximum term of 12 months, cannot be ‘justified’ then the reasons for subsequent recourse to short contracts will
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