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.
Italian Law no. 178 of 30 December 2020 (known as “Budget Law”) has extended the provision of salary supplements due to COVID for a further 12 weeks. Unlike what was envisaged by the previous measures, this time the financial support is free. This means that employers are not required to pay an additional contribution in the event of a reduction in turnover of less than 20% compared to 2019 or in the absence of contraction. The 12 weeks must be used within the timeframe between (i) 1 January 2021 and 31 March 2021 for the ordinary financial support fund and (ii) 1 January 2021 and 30 June 2021 for the “Assegno Ordinario” and “Cassa Integrazione in Deroga” wage supplements. On the other hand, employers that do not require the financial support measures in question are exonerated from paying social security contributions (excluding premiums and contributions due to INAIL (Italian workplace accidents insurance institution)) for a maximum of 8 weeks, which can be used by next 31 March. This exemption is limited to wage supplement hours paid in the months of May and June 2020 and is benchmarked and applied on a monthly basis.
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