COVID-19 Updates - Italy

Information is continuing to emerge on COVID-19 and the resulting legislative changes being instituted in Italy. We have compiled a list of important updates for Italian employers to be aware of. Our teams are closely monitoring the situation and will continue to provide the latest updates to keep you informed.

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Last Updated – March 22, 2020

 

Paid Leave

Employers instructed to grant employees maximum leave possible by COVID-19 Emergency Decree, although this is not a legal mandate. Employers are generally entitled to unilaterally determine the period during which employees may take leave. Employers are encouraged to collaborate with work councils and trade unions to outline the use of leave permits and paid time off throughout the COVID-19 emergency period. Employers can meet employee needs and grant additional leave during exceptional circumstances with the creation of an ad hoc collective agreement at a company level

 

Government Support

Employers with reduced or suspended operations can apply directly for the Ordinary Wage Guarantee Fund, known as Cassa Integrazione Guadagni Ordinaria (CIGO), without informing and consulting works council/trade unions in advance. Employers excluded from CIGO coverage can apply for wage supplementation via the Cassa Integrazione in Deroga as of February 23rd, 2020. Coverage under this public program can only be extended to the employer for three months. Additionally, prior to receiving financial support, the employees of the company may be required to use all remaining leave entitlements.

 

Redundancy

Employers can make employees redundant based on ‘decrease of work’. Employers must provide notice periods. Redundancy payments are determined based on the duration of continuous service.

  • Employees with continuous service of under one year receive three months’ salary
  • Employees with over one year of continuous service receive an amount dependent on salary and length of service. Payment will equal 8% of the annual gross salary per each year of employment plus notice period, outstanding holidays, and 13th & 14th salaries where applicable

 

Terminations

Employers are barred from terminating employees for the next two months, without significant cause for termination.

 

Tax

Employees in industries deemed most vulnerable (e.g. cooks, truck drivers, hotel workers, clerks, etc.) are temporarily tax exempt.