Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Service Agreements and the Tax Decree: A New Set of Rules

New Legislation Enacted

Author: Carlo Majer, Partner – Littler Italy

Starting January 1, 2020, new requirements for service agreements and against unlawful staff leasing were introduced in Italy. The provisions include: (a) the principal must require the contractor (or subcontractors) to provide documentation giving evidence of the proper calculation and actual payment of withholdings related to the employees engaged in the relevant service agreement; (b) the contractor (and each subcontractor) must send, within five days following the deadline to pay the withholdings, a number of detailed documentations proving the fulfillment of all duties towards their employees. The breach of the latter obligations by the contractor (or subcontractors) will result, among other things, in the principal’s obligation to suspend the payment of the services fees, for an amount equal to the withholdings, up to a cap of 20% of the services fees. Within the following 90 days, the principal must communicate the violation to the competent tax authority (Agenzia delle Entrate).

COVID-19: Short-time Work

New Order or Decree

Author: Carlo Majer, Partner – Littler Italy

As a result of the COVID-19 emergency, Italy has introduced new legislation (Decree no. 9/2020; Decree no. 18/2020) to implement a number of stimulus regulations. With reference to short-time work, employers can require employees to suspend their work activity in full or in part, while Italian National Security Authority (INPS) will be providing for up to 80% of the employees’ lost salary for short-time work. Short-time work is accessed through a variety of programs: “Cassa Integrazione Guadagni Ordinaria,” available to industrial (and similar) companies employing more than 15 individuals; “Fondo di Integrazione Salariale,” available to commercial (and similar) companies employing more than 15 individuals; “Cassa Integrazione Guadagni in deroga,” available to all businesses and particularly small ones. In all cases of short-time work, a fast consultation process with unions is required. Employers can access all of these social programs for a maximum of nine weeks.

COVID-19: Employees Benefits Provisions

New Order or Decree

Author: Carlo Majer, Partner – Littler Italy

As a result of the COVID-19 emergency, Italy has introduced new legislation (Decree no. 9/2020; Decree no. 18/2020) to implement a number of stimulus programs for employees: (a) in the form of parental leave, parents who are staffed as employees or are self-employed workers have an extra parental leave period of up to 15 days; (b) as an alternative to parental leave, parents may access a “babysitting bonus” of up to EUR 600.00 to cover those services; (c) self-employed workers and collaborators enrolled with the so-called “gestione separata” of the Italian National Security Authority can access a EUR 600.00 bonus for the month of March 2020; (d) seasonal employees can access an indemnity for the month of March 2020 equal to EUR 600.00; and (e) for individuals who worked in the company’s premises in March, a “una-tantum” bonus, consisting of EUR 100.00 for employees who have a total income up to EUR 40,000.00.

COVID-19: Collective and Individual Dismissals

New Order or Decree

Author: Carlo Majer, Partner – Littler Italy

As a result of the COVID-19 emergency, Italy has introduced new legislation (Decree no. 9/2020; Decree no. 18/2020) to implement further protections to employees during the emergency. From March 17, 2020, until May 16, 2020, employers cannot start collective dismissal procedures. Meanwhile, any collective dismissal procedures started after February 23, 2020, and still pending are suspended. Additionally, during the same period, employers cannot dismiss employees based on economic reasons, though they may still dismiss for just cause, justified subjective reason, or failure to pass the probationary period. After May 16, 2020, unless new guidelines are published, employers may proceed with dismissals as customarily done before, pursuant to the laws or the National Collective Bargaining Agreements (NCBA) applicable to the employment relationship.

Supreme Court Judgement on Delivery Drivers

Precedential Decision by Judiciary or Regulatory Agency

Author: Carlo Majer, Partner – Littler Italy

Delivery drivers who hold a collaboration contract are entitled to be paid as employees (both from a salary and social security standpoint), based on the application of the Jobs Act Rule (article 2, paragraph 1, of Legislative Decree 81/2015), without the need for the relationship to be converted into a form of ordinary employment. With this decision, the Corte di Cassazione (decision 1663/2020) put an end to a litigation of the delivery drivers of digital platforms, affirming important concepts, intended to guide the interpretation and application of all future collaboration contracts.