Employment Insights – August 2024

Through the monthly newsletter “Employment Insights“, Andersen provides an overview of the latest developments in labor law, including judicial updates, case studies, and collective agreements in various countries. This edition features contributions from experts in 20 European jurisdictions.

Andersen’s European labor law department comprises highly qualified lawyers and accountants who continuously advise national and international companies operating in various sectors. These professionals offer comprehensive support, addressing disputes and providing guidance throughout the employment relationship, from contract drafting to termination.

The Italian team of experts, led by partner Uberto Percivalle, focuses on the latest and most relevant developments in labor law in Italy.

In this edition, we will delve into significant legal and regulatory updates in the fields of labor and social security. We will discuss how furlough schemes have been made more accessible to address extreme weather conditions, the social security contribution exemption for employees in southern regions, and the latest updates to the “Milan Table” for personal injury compensation. Additionally, we will examine recent Constitutional Court decisions on dismissals for non-existent economic reasons and disciplinary dismissals, which have important implications for employee reinstatement and compensation.

To learn about updates from other jurisdictions, please refer to the attached publication.

Furlough schemes made more convenient to combat climate change

A recent regulatory change introduced by Law Decree No. 63/2024 makes the use of furlough schemes more accessible for agricultural, construction, and excavation workers in the event of unavoidable circumstances such as extreme weather conditions. This system allows employers to suspend employees while they receive an allowance from INPS. The measure is temporary and will be in effect until December 31, 2024.

Social security contribution exemption for southern regions

INPS has announced that the European Commission has approved a 30% social security contribution exemption for workers in southern Italy until December 31, 2024. The Italian government plans to extend the exemption until 2029, with gradual reductions, but further approvals will be required.

Updated personal injury compensation table

The Milan Court has updated the “Milan Table,” a set of guidelines for standardizing personal injury compensation. First introduced in 1995, the table has become a reference tool across Italy, used even outside judicial contexts. The table is based on a medical assessment of the percentage points of disability caused by health-related damages, with values varying according to age. It is applied in various areas, including workplace safety, harassment, stress, and burnout.

Reinstatement for dismissals based on non-existent economic reasons

The Constitutional Court, with decision No. 128 of July 16, 2024, has established that employees dismissed for economic reasons that are found to be non-existent may request reinstatement in their position, rather than only receiving statutory compensation. This remedy applies to employment contracts entered into after March 7, 2015. If the employer cannot prove the economic or objective reasons cited in the dismissal letter, the employee can seek reinstatement.

Disciplinary dismissals for reasons punishable only with lesser sanctions are not subject to reinstatement

The Constitutional Court, with decision No. 129 of 2024, ruled that workers dismissed for disciplinary reasons punishable only with lesser sanctions under collective agreements are not entitled to reinstatement but only to compensation. This rule applies only to employment contracts entered into after March 7, 2015.