The converted Sostegni bis decree: what's new in the field of labor law

Law no. 106 of July 23, 2021, converting Decree-Law no. 73 of May 25, 2021 (the so-called "Sostegni bis" Decree) introduces important changes in the labor law field, which have incorporated the measures introduced by Decree-Law no. 99 of June 30, 2021, while simultaneously repealing it.

The following is a summary of the main changes.

Fixed-term employment contracts

Starting from July 25, 2021, the date on which the law converting the Sostegni bis Decree came into force, the term of more than 12 months (but, in any event, not more than 24 months) may be applied to fixed-term employment contracts, until September 30, 2022, even in the event that specific requirements set out in collective labor agreements arise.

This provision will not have an immediate effect, as it will have to be supplemented by collective bargaining, which has received a sort of "blank proxy" for the identification of "specific needs" and which will need time to align with the new regulatory framework.

In any event, it should be remembered that the first fixed-term contract does not require a reason up to the threshold of 12 months and that, until December 31, 2021, previous extensions and renewals have been reset to zero and employers may use all types of fixed-term contracts, including administration, without the need to attach conditions.

Social safety nets

In order to cope with situations of particular economic difficulty, employers who suspend or reduce work activity due to events related to the epidemiological emergency from COVID-19, are granted an extraordinary salary integration treatment, for a maximum of thirteen weeks usable until December 31, 2021.
 
Employers in the textile, clothing and leather and fur industries, and in the manufacture of leather and similar articles that, as of July 1, 2021, suspend or reduce work activity, may submit, for employees in force as of June 30, 2021, an application for ordinary wage supplementation treatment for a maximum duration of seventeen weeks in the period between July 1 and October 31, 2021. No additional contribution shall be due for the treatments granted pursuant to this paragraph.
 
From July 25, 2021 until December 31, 2021, the six-month extension of CIGS treatments is also allowed for salary integration treatments for company crisis in favor of companies operating in the aviation sector, with an increase in the Solidarity Fund of the air transport and airport system, subject to an agreement stipulated at the Ministry of Labor and Social Policies, with the participation of the other competent Ministries and the regions concerned.

Ban on dismissals

Employers who submit an application for any social safety net cannot start any collective or individual for economic reason dismissal, for the duration of the wage supplementation treatment used by December 31, 2021, and pending procedures initiated after February 23, 2020 are also suspended for the same period (except in cases where the staff affected by the termination, already employed in the contract, is rehired following the takeover of a new contractor by law, national collective labor agreement or clause of the contract).
 
Employers are also precluded, during the same period, regardless of the number of employees, from withdrawing from the contract for objective reasons, and the related ongoing procedures are also suspended.
 
The above suspensions and exclusions do not apply in the event of:
 

• dismissals motivated by the definitive cessation of the company's activity, including as a result of the company being put into liquidation without continuation of the activity, in cases where during the liquidation process no sale of a group of assets or activities is carried out that could constitute a transfer of the company or a branch thereof

• in the event of a company collective agreement, stipulated by the most representative trade unions at a national level, as an incentive to terminate the employment relationship, limited to workers who adhere to the aforementioned agreement. These workers are, in any case, entitled to the NASpI.

 
Dismissals in the event of bankruptcy are also excluded from the prohibition, when the provisional exercise of the company is not foreseen or its termination is ordered. In the event that the provisional exercise is ordered for a specific branch of the company, dismissals concerning sectors not included in the same branch are excluded from the prohibition.