Italy: new measures to support jobs and the economy

On 7 August Italy’s council of ministers approved the so-called 'Decreto Agosto' (August decree), which will see a further €25 billion freed up to support employment and the economy, notably by extending the Cassa Integrazione (wage guarantee fund) short time working allowance, relaxing the regulations on fixed-term contracts and reducing social security contributions. The most delicate point was that of redundancies, which were prohibited since the start of the health crisis and until 17 August. Faced with threats of a general strike by the unions, the government partially renewed the suspension, but employers are dissatisfied with the compromise.
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Cassa Integrazione. The August decree provides funding for 18 additional weeks of technical and partial unemployment (Cassa Integrazione), including for those exempt from the usual mechanisms, following on from the 18 weeks already approved since the start of the health crisis (see articles n° 11726, 11936 and 12006). This extension of the Cassa Integrazione can be used, retroactively in part, from 13 July to 31 December. Companies that do not apply for this extension of the Cassa Integrazione

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