Italy: unions up in arms over the proposal to do away with Article 18 of the Labor Code, as it becomes the focus of government proposals to overhaul the code

On September 23, 2014, the Italian government presented, before the Senate, draft enabling legislation that would completely overhaul the country’s labor law. The focus is on abolishing Article 18 that provides for the re-instatement of workers deemed to be dismissed unfairly. Unions are also sounding the alarm over various other workers rights threatened by the reforms and they are intensifying their calls for others to oppose the reform project.
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Major themes. Prime Minister Matteo Renzi is looking for swift approval of the enabling legislation that will allow the government to simplify the labor code (c.f. article No. 8573). The deadline is set for October 8, 2014, coinciding with the European Summit on Employment being held in Milan. In order to accelerate its passage through parliament, the government presented, on September 17, 2014 an amendment that replaces the highly controversial Article 4. Its approval allowed the draft law to be presented yesterday before the Senate. This article enables the government to adopt, subsequent to the Minister of Labor’s proposal, and within the six months of the law being enforced, one or more Decree Laws, one of which concerns “a comprehensive and simplified text” on regulations covering contract typologies and working relations.

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