Law Decree Ristori – New temporary layoffs, dismissal suspension and social security contribution exemption

A further 6 weeks of temporary layoffs are provided. This provision applies from November 16, 2019 to January 31, 2021.

The 6 weeks of temporary layoffs is free for companies which in the first half of 2020 had a reduction in revenues equal to or greater than 20% compared to the corresponding half of 2019, for companies that started their business after 1 January 2019 and for the companies affected by the restrictions imposed by the Prime Minister’s Decree of October 24th 2020.

In the other cases, an additional fee is due and equal to:

  • 9% of the total remuneration that would have been due to the employee for the not working period, for employers who in the first half of 2020 had a reduction in turnover of less than 20% compared to the corresponding semester of 2019;
  • 18% of the total remuneration that would have been due to the employee for the not working period, for employers who in the first half of 2020 did not have any reduction in revenues compared to the corresponding semester of 2019.

Dismissals are suspended until January 31st 2021. This limitation does not apply in the following cases:

  • companies that have run out of business;
  • companies declared bankrupt when the business activity is not foreseen;
  • in the case of a union agreement, to workers who adhere to the aforementioned agreement.

 

For private employers, except for the agricultural sector, who do not require any wage integration treatments for COVID-19 emergency, the exemption from the payment of social security contributions is provided for a maximum period of 4 months, to be applied within January 31st  2021.

 

Marco Cerutti