Insights

Memorandum no. 3 of Minister of Labor and Italian Revenue Agency established that the tax reduced rate (10%), applicable up to 6,000 Euro salary, is levied to the employees of the private sector who do not earn more than 40,000 Euro gross in 2010 and for the part of the salary connected with productivity increases.

With the approval by the Senate of the Law Decree “Milleproroghe”, deadlines for dismissal challenges are postponed.

Court of Cassation stated that, in case of dismissal for just cause, employer has to prove that the employee’s behaviour has damaged the trust beneath the employment relationship, in order to legitimate the measure.

The labor consultants and the professional associations (among which “AIDP”) agree on the proposal for the interested companies of suspending the reduced taxation levied on the amounts paid for overtime, night and shift work and related to productivity increases. The mentioned proposal is suggested though the fiscal incentive introduced by Law Decree no. 93/08 has been extended by Law no. 220/10 (so called “Legge di stabilità”).

After the coming in force of the so called “Collegato Lavoro”, Courts stated on compensation issue in case of fixed-term contract conversion into an open-ended one.