Italy: the Renzi administration’s labor law reforms will aim to introduce “single contract with gradual forms of protection”

In the 2014 Economic and Financial Document (DEF) adopted by the Council of Ministers on April 8, which will be sent to the European Commission within the framework of the new economic governance, especially the European Semester, the government points out that the reform of fixed-term contracts and apprenticeship, enacted by a decree-law issued in March, and the bill reviewing labor contract figures, will aim to introduce a “single contract with gradual forms of protection.”
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Following approval by the Parliament, the DEF will be sent to the European authorities as an essential part of the European Semester. The most broadcasted measure of “immediate effect” in the structural reform plan is the reduction of the “cuneo fiscale,” i.e. the reduction in low and average incomes (below €25,000 before tax). It should concern about 10 million workers starting in May 2014. According to the government’s calculations, employees receiving €1,500 net would get an additional €8

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