Employment Insights – July 2024

European labor law updates

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 22 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.

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

Report on Gender Equality in the Workplace

A decree dated June 3, 2024, issued by the Ministry of Labor and the Ministry of Equal Opportunities, was published in the Official Gazette on June 26, 2024. This decree sets out the rules that employers must follow to report on the status of their male and female employees. This reporting requirement has existed for about twenty years, but since 2021 it has been mandatory for all companies with more than 50 employees. Employers must use an online reporting system to provide data on the distribution of employees by gender across various roles, types of employment contracts, and salaries. The report also includes information on selections, promotions, inclusivity, and work-life balance procedures. Small employers can also voluntarily submit this report following the same rules. The report must be submitted by September 20, 2024, covering the years 2022 and 2023.

Southern Italy Social Security Contribution Reduction

The EU Commission has approved the extension of the “Decontribuzione Sud” until December 31, 2024. This measure, which was set to expire on June 30, 2024, provides an exemption from social security contributions to encourage employment in companies in the southern Italian regions: Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily.

Notification to Employees of Tracking Devices

On June 3, 2024, the Court of Cassation, in decision No. 15391, ruled that employers must inform employees about the installation of electronic devices for paying highway tolls and explain how these will be used and monitored. Only by following these rules can employers use the information collected from such devices. The Court specified that it does not matter whether the highway transit data comes from monthly invoices or directly from the device; additionally, it is irrelevant if the employee could have deactivated the device or chosen alternative lanes. It is essential to provide employees with clear and adequate information. Only in this way can employers use highway toll data for any work-related purposes, including disciplinary ones.

Guidelines on Managing Work-Related Data

The guidelines published by the Italian Agency for managing email in the workplace primarily concern the handling of metadata associated with email messages, such as the email addresses of the sender and recipient, IP addresses, timestamps of sending and receiving, message sizes, and any attachments, and sometimes the subject of the message. These metadata are recorded in the logs generated by mail transfer agents (MTAs) and workstations. The collection and retention of such metadata must be limited to 21 days, except under special conditions justifying longer retention. In such cases, employers must enter into an agreement with the company committee or obtain authorization from the Labor Inspectorate. This measure requires companies to carefully review their email systems and the requirements for negotiating such agreements or obtaining the necessary authorizations.

Violation of Data Processing Information

The Data Protection Authority has fined a car dealership 120,000 euros for two main reasons:

1. Using a facial recognition system to monitor employee attendance at work without a legal basis justifying its use.
2. Requesting employees to use an ERP app to record work activities, breaks, and downtime without providing adequate information on data processing, the nature and type of data processed, methods and duration of storage, and without assessing the real necessity and proportionality of such processing.

The dealership had provided employees only generic information about data processing, deemed insufficient by the Data Protection Authority.