New exceptions to extensions and renewals of fixed-term contracts in the Budget Law (Guida al Lavoro of Il Sole 24 Ore, 12 January 2021 – Alberto De Luca, Debhora Scarano)

Budget Law 2021 covers a wide range of measures in labour, taxation, liquidity support areas and business development and, in 1,150 paragraphs, outlines the financial manoeuvre rules.

Art. 1, paragraph 279, of Law 30 December 2020, no. 178, extended until 31 March 2021 the possibility of extending or renewing fixed-term contracts by repealing the strict and controversial obligation to include reasons introduced in the fixed-term contracts’ general regulations by Legislative Decree no. 81/2015 ( Jobs Act), as amended by the Dignity Decree (Decree Law 87/18 as converted by Law 96/18).

This important exception, which provides newfound flexibility in the use of fixed-term contracts, was first introduced by the Relaunch Decree until 31 August 2020, extended until 31 December 2020 and further extended until next spring by the Budget Law. This “favourable” extension or renewal is allowed only once and for a maximum of 12 months, within the maximum duration limit of fixed-term employment contracts of 24 months.

Continue reading the full version published in Guida al Lavoro of Il Sole 24 Ore.