Italy: unemployment benefits system set to change on 01 January 2017

The final sections of the Fornero reform and the Jobs Act are set to come into force on 01 January 201. They will bring about significant changes to the country’s ‘social buffers’ and aim to bolster companies managing their restructuring programmes. Lower social security contributions for new hires from the registered unemployed are to be replaced by provisions targeting the young and the country’s southern regions, a change that should influence companies’ employment plans (lay offs and recruitment).
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31 December 2016 marks an end to two provisions that over recent years had facilitated managing the recession. The first provision approaching its expiration date is the ‘Cassa Integrazione in deroga’ that allowed companies normally precluded from the regular Cassa Integrazione (technical unemployment depending on company size and business sector) to benefit from the system. The programme will be closed down gradually, so regions can continue to finance the system in 2017 for companies who have

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