On 09 August Italy’s parliament definitively ratified Prime Minister Conte’s government’s decree law that aims to curb precarious employment by rowing back on some of the Jobs Act’s key measures. The new text tightens regulations covering fixed term employment contracts and interim employment contracts, augments unfair dismissal compensation payments, and sanctions companies that outsource after having received state aid. All the employers’ organizations have fiercely criticized the new measure, which they claim will discourage investment and job creation. Unions have mixed views on a law that penalizes ‘protected’ forms of flexibility as opposed to other forms of precarious work.
The most important of the decree law’s measures is the restriction on fixed term employment contracts, which had been liberalized by the 2014 Poletti decree. The maximum term for fixed term employment contracts has been shortened from 36 months to 24 months regardless if it is a single contract or successive contracts. The number of contract renewals has been lowered from 5 to 4 and social contribution payments will rise by 0.5% each time the contract is renewed.
Fixed term employment contracts
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