Join the Ius Laboris Italy Toffoletto De Luca Tamajo webinar: Recent changes to fixed-term contracts and temporary agency work in Italy on 13th November
- 2018 Nov 13
- 2018 Nov 13
A number of legislative changes were introduced on 9th August 2018, including several affecting the regulation of fixed-term contracts and temporary agency work.
- The maximum total duration of fixed-term contracts is 12 months. This limit can be extended to 24 months, but only if at least one of the following grounds - which must recorded in a written document and be given to the employee - exist:
- a temporary and objective necessity that is unrelated to the ordinary activity of the company or consisting in the need to replace other employees;
- a necessity resulting from temporary, significant and unpredictable peaks in ordinary activity.
- Should a contract exceeding 12 months be concluded between the parties without having satisfied the above conditions, the contract will be turned into an open-ended contract from the date on which it exceeds 12 months.
- Contracts can be extended freely in the first 12 months, following which an extension can only be arranged only in the presence of the conditions set out above.
- A maximum of four extensions are allowed in the 24-month period. If this limit is exceeded, the contract will be turned into an open-ended contract, beginning with the fifth extension.
- Even if the initial length of a fixed-term contract is less than 12 months, it can only be renewed if the above grounds exist. In case of renewal without having satisfied such conditions, the contract will be turned into an open-ended contract.
- Fixed-term contracts for seasonal work may be renewed or extended without fulfilling the aforementioned conditions.
- The maximum total duration of fixed-term contracts between the same employer and the same employee, for duties of the same level, is now 24 months (and includes the periods of temporary agency work).
- A fixed-term contract can be challenged within 180 days of the end of the single employment contract.
- The new provisions also apply to contracts concluded by temporary agencies with employees that will be sent on a work mission to a user company. Where required, the conditions refer to the user. Agencies are only exempted from the minimum time interval requirement («stop&go») between one contract and another, from the maximum limit of 20% of the permanent staff and from the right of priority in hiring. A different regulation of contract extensions may be provided for by the national bargaining agreement of temporary agencies.
- Unless otherwise regulated in the collective bargaining agreement applied by the user, the total number of temporary and fixed-term workers employed by the user cannot exceed 30% of permanent workers. The maximum limit of 20% for fixed-term contracts only remains unchanged. These percentages do not affect the recruitment of particular categories of workers.
- In case of fraudulent temporary agency work, (i.e. when temporary agency work is carried out with the aim of avoiding mandatory laws or collective agreements applied to the worker), the temporary agency and user will be punished with a criminal fine amounting to 20 euros for each worker involved and for each day of temporary agency work.
- As far as indefinite-term contracts are concerned, the new rules immediately apply to new contracts.
- The old regulation applies to extensions and renewals of previously agreed contracts until 31 October 2018.
Find out more: sign up to the 13th November 2018 Webinar
What key issues emerge from the reform? How can employers best manage the challenges set by the changes that have been introduced? These are the questions that will be examined during the webinar. To register, send an e-mail to: email@example.com by the 12th November.
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