Given protestation from the employers' organizations and bubbling tensions amid the majority, the Draghi government has reversed a measure that was introduced at the last minute in the "Sostegni Bis" decree (c.f. article No. 12536), and that aimed to extend the redundancy freeze by two months (30 June to 28 August) for companies benefiting from access to technical and partial unemployment measures until June. Published on 02 June, the European Commission’s spring recommendations are critical of Italy’s layoff-ban, considering the measure to be ineffective and providing employees on permanent employment contracts additional protection as compared to precarious workers.
Rules ending the layoff freeze still complex. As provided for in the Sostegni decree of March (c.f. article No. 12427), the freeze on layoffs will end on:
- 01 July for companies benefiting from the normal Cassa Integrazione (technical and partial unemployment financed by social security contributions), used primarily in the industry and agriculture sectors,
- 01 November 1 for companies benefiting from the Cassa Integrazione in deroga – exceptional technical and partial unemployment linked to Covid and directed mainly at the services sector.
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