The Italian short-time work scheme is called Cassa Integrazione Guadagni (CIG), which involves a system of income support for employees affected by hourly reductions caused by a company's financial difficulties.
CIG is subdivided into ordinary CIG, which applies in the case of company difficulties due to temporary events not attributable to the company itself, and extraordinary CIG, which applies in the case of the company reorganisation, company crisis or defensive solidarity contracts (union agreements to reduce working time and avoid dismissals).
The extraordinary CIG has a maximum duration of 24 months, continuous or interrupted, and may be requested by companies that have employed on average more than fifteen employees in the previous six months. Lastly, it is also possible to agree on an individual level with the employee in order to change his working hours from full-time to part-time.
Employers operating in areas outside the application of the CIG may, through an agreement with the trade unions at national level, set up a bilateral solidarity fund, which acts as a CIG.
In absence of a bilateral solidarity funds, the Solidarity Integration Fund – Fondo Integrazione Salariale (FIS) is available for employers with an average of more than five employees and operating in sectors outside the CIG.
In order to counteract the loss of jobs due to the measures taken to combat the COVID-19 epidemic, on 17 March the government introduced several measures that derogate from the normal discipline.
The coronavirus related short-time work scheme are divided into:
- Coronavirus CIG and FIS; and
- Coronavirus CIG in derogation;
As a result of these measures, in the event of suspension or reduction of activity due to events related to the COVID-19 emergency, all companies may apply for some sort of short-time work scheme up to the end of August 2020. The remedy will last for a maximum of nine weeks.
In more detail, the periods of time needed due to Coronavirus caused by the CIG do not count for the maximum duration of past or future instances of short-time schemes.
Comparable measures have been adopted for access to the Solidarity Fund, the fund set up for companies with an average of more than five employees operating outside the scope of the CIG.
For companies operating in sectors outside the scope of the CIG and the Solidarity Fund, the public authorities may, as a result of the COVID-19 emergency, grant the CIG even in the absence of the requirements dictated by the law.
The treatment thus granted will have a duration equal to the suspension of the employment relationship and in any case will not exceed nine weeks.
Companies that already benefit from the extraordinary CIG may suspend that treatment, replacing it with a period of nine weeks of ordinary CIG.
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