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Transparency Decree: new disclosure requirements in employment contracts

03/08/2022

Decree on transparent working conditions published
Legislative Decree No. 104/2022, which implements European Directive No. 2019/1152 on transparent and predictable working conditions, has been published in the Official Journal.
This Decree, which will enter into force on 13 August 2022, amends, among other things, Legislative Decree No. 152/1997, introducing additional information that employees (but also other types of workers) must receive in connection with their work performance.
Below is a brief summary of the main provisions.
We are in any case available to provide a more specific examination of the changes and to review your contractual models.

Scope of application
The Decree applies to subordinate (fixed-term and open-ended) employment contracts, including part-time and intermittent employment contracts, but also applies to temporary employment contracts and collaboration contracts with predominantly personal and continuous services as referred to in Article 2(1) of Legislative Decree No. 81/2015, coordinated and continuous collaboration contracts, occasional services, and domestic workers (with the exception of some provisions).

Deadlines and modalities for providing information
Subject to certain exceptions, the information will generally have to be provided by handing over to the workers, at the time of the establishment of the employment relationship and before the commencement of work, the written employment contract or a copy of the notice of establishment of the employment relationship. A general reference to the provisions of the applicable collective agreement will no longer suffice.
If the said documents do not contain the information required by the Decree, certain elements (such as training that may be required, duration of holidays and paid leave, procedure and terms of notice, collective agreements applied and entities to which contributions are paid) may be provided within 30 days from the start of the work performance, while the main remaining information can be provided within 7 days.

Changes
Any changes to the contractual terms subsequent to employment must be communicated in writing to the employee by the first day on which the changes take effect.

Information to be provided

The employer shall provide the following information:

  • identity of the parties;
  • place of work;
  • location of the employer;
  • grade, level, qualification;
  • date of commencement of the relationship;
  • type of relationship, indicating its duration for fixed-term relationships;
  • the right to receive training provided by the employer, if any;
  • the duration of holiday leave and other paid leave;
  • the procedure, form and terms of notice in the event of termination by either party;
  • the initial amount of remuneration, its components, and the manner and terms of payment;
  • the schedule for normal working hours and any conditions relating to overtime work and its remuneration, and any conditions for shift changes;
  • the collective agreement, including the company agreement, applied to the relationship, with an indication of the parties that signed it;
  • the bodies and institutions receiving social security and insurance contributions.

Additional information obligations when using automated decision-making or monitoring systems
The employer or principal must inform workers of the use of automated decision-making or monitoring systems designed to provide relevant information for the purposes of recruitment or assignment, management and termination of the employment relationship, assignment of tasks and supervision of workers.
However, the rules on remote controls of Article 4 of the Workers' Statute remain unaffected.
The employee also has the right to access the above-mentioned data and the employer must respond within 30 days.
This information must also be given to RSA/RSU or, in their absence, the territorial branches of the most representative associations at the national level.

Privacy consequences
The employer/employer will therefore be required to supplement the privacy policy with instructions to employees on data security and the updating of processing records.
In any case, it is hoped clarifications will be made to the regulatory provisions.

Work abroad
An employee who is posted abroad must receive precise information before departure (e.g. country of posting, conditions of repatriation, etc.)

Maximum length of probationary period
The probationary period may not exceed six months, unless the collective agreement provides for a shorter period.
In the case of fixed-term contracts, the probationary period must be set in proportion to the duration of the contract and the tasks to be performed.
In the event of the suspension of the employment relationship (due to illness, accident, maternity, etc.), the probationary period is extended in proportion to the duration of the absence.

Cumulation of employment
Without prejudice to the duty of loyalty of Article 2105 of the Civil Code, the employer may not prohibit the employee from carrying out other activities outside working hours, unless there is a conflict of interest or a danger to health.

Transition to more predictable and safe forms of work
A worker who has accrued at least six months' seniority with the same employer or principal and has completed the probationary period may request to be granted a more stable form of work, if available.
In the event of a negative response, the worker may submit a new request at least six months after the previous one.
The employer/employer must provide a reasoned written response within one month.

Transitional Provisions
The Decree enters into force on 13 August 2022.
With effect from this date, all new employment contracts must comply with the requirements of the Transparency Decree.
In relation to existing contracts, workers may request, as of 1 August 2022, that their contract be updated, within 60 days of the request.

Sanctions
Failure, delay or incomplete fulfilment of the information obligations will result in the application of an administrative sanction of between EUR 250 and EUR 1,500 for each worker concerned, subject to a complaint by the worker and an inspection.
Further sanctions and consequences are also envisaged, such as for violating the information provisions on automated and monitoring systems.
Dismissal or any detrimental treatment of workers for exercising their rights under the Decree is also prohibited.

Authors

Portrait ofFabrizio Spagnolo
Fabrizio Spagnolo
Partner
Rome
Portrait ofGiusy Lauro
Giusy Lauro
Counsel
Rome
Portrait ofGian Marco Lettieri
Gian Marco Lettieri
Senior Associate
Rome
Elsa Mora
Federico Pisani
Senior Associate
Rome
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