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 to be tightly framed following the first year. Fixed term employment contracts require no grounds for the first twelve months and any contract renewals can only occur for three reasons: replacements, ‘temporary objective requirements different to the business’s regular activity’ (e.g.