COVID-19 Decreto Sostegni bis - Labour Law and Social Policies

On May 25, 2021, the so-called Sostegni-bis Decree-Law (73/2021) was published, introducing urgent measures related to the COVID-19 emergency for businesses, work, youth, health and territorial services.
 
The Decree came into force on 26 May 2021 and addresses various issues, such as the provision of grants, interventions for the reduction of fixed costs, measures for access to credit and liquidity of companies, health protection.
 
Below you can find a summary of the main labour law changes.

Supplementary salary scheme linked to COVID-19
Employers who, in the first half of 2021, recorded a 50% decrease in turnover compared to the first half of the year 2019 and are forced to suspend or reduce their work activity due to the COVID-19 emergency may apply for the Extraordinary redundancy fund (CIGS) for a maximum duration of 26 weeks in the period between 26 May 2021 and 31 December 2021.
In order to do so, employers must first enter into a company collective agreement,, which provides for an average percentage reduction in working hours -concerning all the affected employees as average - of up to 80% (For each employee, the percentage reduction in working hours cannot exceed 90%).
Workers affected by the reduction in working hours will be entitled to a wage supplement equal to 70% of the total remuneration that would have been due to them if they had worked (in addition to figurative social security contributions) without the application of the cap, set out by the ordinary Italian regulation . For the CIGS treatment in question, there is no additional contribution to be paid by the companies until the end of the current year.
 
Supplementary salary scheme (grounded on reasons other than COVID-19)
 According to Sostegni-bis Decree-Law, if employers use the ordinary supplementary salary scheme (CIGO) and the extraordinary one (CIGS), not specifically grounded on COVID-19, from 1 July 2021 until 31 December 2021, they are exempted from any additional contribution (provided that they do not dismiss their employees over the relevant period)

Other collective agreements
The so-called “Contratto di Espansione” is an agreement between the employer, the Ministry of Employment and the trade unions, regarding a company reorganisation or industrialisation plan, pursuant to which: (a) early retirement is arranged for workers who are no more than 60 months away from retirement; (b) the hiring of qualified employees is envisaged; (c) the introduction of training plans for staff not included in the redundancies is established; and (d) access to the CIGS is provided for redundant staff.
Decree-Law 73/2021 provides for a lowering of the minimum number of employees (from 250 to 100) that a company must have in order to  be eligible for Contratto di Espansione.

Ban of Dismissal
The ban on dismissal is now regulated as follows:

• Up to 30 June 2021, for all the employers;
• Up to 31 October 2021 for the employers subject to the use of special supplementary salary schemes, such as the so-called Cassa Integrazione in Deroga”, “Assegno Ordinario” (FIS) and Bilateral Solidarity Funds;
• For the duration of the ordinary (so-called CIGO) and extraordinary (so-called CIGS) supplementary salary scheme, used as of 1 July 2021 (and, in any case, within 31 December 2021)

 
The previous exceptions to the ban on dismissal have been maintained and include:

• definitive termination of the business;
• termination of the business, following liquidation of the company without continuation (even partial) of the activity in cases where during the liquidation process there is no transfer of a group of assets or activities that may constitute a transfer of the company or a branch thereof;
• company collective agreement with the most representative trade unions at the national level, which provides for the incentive to terminate the employment relationship;
• bankruptcy when the provisional exercise of the company is not envisaged or its termination is ordered;
• when the staff affected by the termination of employment, who were already employed under contract, are rehired by the new contractor in accordance with the law or applicable collective agreements.

Emergency income (REM)
The extension of four monthly REM payments is envisaged for June, July, August and September 2021; the application must be submitted to INPS by 31 July 2021, using the application form prepared by the same Institute.

New Social Security Employment benefit (NASpI)
From the date of entry into force of Decree Law 73/2021 (26 May 2021) until 31 December 2021, the reduction of the NASpI allowance by 3% per month is suspended, starting from the first day of the fourth month of use. This measure will cease to have effect on 1 January 2022 when the monthly reduction of the allowance will resume, also taking into account the months of the elapsed suspension.

Reemployment contract (s-.called “Contratto di Rioccupazione”)
The Sostegni-bis Decree-Law, for the period 1 July 2021 until 31 October 2021, establishes a new special kind of employment contract (so-called Contratto di Rioccupazione).
Such contract is aimed at facilitating the return to work of unemployed workers and it must provide for an individual induction project lasting 6 months (so-called Progetto di Inserimento), upon the employee’s consent.
Private employers who hire employees with such a contract are granted, for a maximum period of six months, an exemption from the payment of 100% of the total social security contributions up to EUR 6,000 annually (provided that they have not, in the six months preceding the hiring, made individual dismissals for objective reasons in the same production unit).

Tourism
Private employers in the tourism, spa and commerce sectors are granted, without prejudice to the rate at which pension benefits are calculated, exemption from the payment of social security contributions payable by them, which can be used by 31 December 2021.

Extraordinary redundancy fund (CIGS)
Until 31 December 2021, a six-month extension (to be stipulated with an agreement within the government) of the extraordinary wage-supplementation treatment may be authorised for companies with particular strategic importance on the territory, if they have started the company closure process and if this extension is necessary for completion of the process and for safeguarding employment during these particularly complex phases.