Labour provisions on New Labour Bill 11 Dec. 2024

On 11 December 2024, the Italian senate approved the latest bill on “labour provisions”, which is linked to the recent budget law, and so brought this parliamentary process to its conclusion. Let us now look at the main changes for companies and workers:

DURATION OF THE PROBATIONARY PERIOD IN A FIXED-TERM CONTRACT
Unless collective bargaining agreements provide more favourable conditions, the probationary period is set at one actual working day for every 15 calendar days, starting from the date on which the employment relationship commences. In all cases, a probationary period cannot be less than 2 days or more than 15 days for contracts lasting no more than 6 months; for contracts exceeding 6 months but less than 12 months, the probationary period must be no less than 2 days and no more than 30 days.

UNJUSTIFIED ABSENCE OF A WORKER BEYOND THE TIME LIMITS SET BY THE COLLECTIVE AGREEMENT OR, IN THE ABSENCE OF CONTRACTUAL PROVISIONS, EXCEEDING 15 DAYS
In such cases, the employment relationship is deemed to have ended on the basis of the employee resigning and the online resignation rules do not apply, unless the employee can demonstrate that he/she was unable to communicate the reasons for his/her absence due to force majeure or circumstances ascribable to the employer. The employer is required to notify the National Labour Inspectorate, which will be responsible checking the notification is accurate. At this point, we are still waiting for the National Labour Inspectorate to issue the circular that will bring this procedure into effect.

WORKING REMOTELY
The practice for “smart working” has been confirmed. This requires an employer to notify the Ministry of Labour and Social Policies of the commencement, amendment or termination of remote working arrangements via the online portal within 5 days from the start, change or cessation of the arrangement.

APPRENTICESHIP
The funds allocated annually for training related to professional apprenticeships have been expanded to cover all forms of apprenticeship. The law also confirms the option to convert an apprenticeship aimed at obtaining a vocational qualification or diploma into a professional apprenticeship or an apprenticeship for advanced training and research. Such a conversion requires that the relevant training plan (piano formativo) be updated accordingly.

SEASONAL ACTIVITIES
The Decree includes a provision to clarify exactly what constitutes a seasonal activity, as per the reference in Presidential Decree no. 1525 of 1963. Indeed, seasonal activities are defined as activities organised to address the “intensification” in workload in specific periods of the year and to meet technical or production-related needs linked to the seasonal cycles of production sectors or the markets served by the company. This is in accordance with collective agreements signed by the most representative national trade unions.

EMPLOYMENT AGENCIES
Under existing regulations, the limit for the use of temporary agency agreements has been set at a maximum 30%, calculated as a proportion of the permanent employees hired by a company. Under the new rules, certain categories of workers are excluded from this limit: workers hired on permanent contracts by employment agencies, workers over the age of 50, workers employed to carry out seasonal activities or for specific performances/shows, workers hired by start-ups and those replacing absent employees. The legislation also introduces greater flexibility in the use of the Formatemp and Ebitemp funds, which are intended for the training and income support of workers on fixed-term or permanent agency contracts.

ONLINE CONCILIATION
As part of ongoing efforts to simplify procedures, it has been confirmed that labour-related conciliation processes can be conducted using online means.

WAGE-SUPPORT SCHEMES AND OTHER ACTIVITIES
The new legislation reiterated that workers on a wage-support scheme (Cassa Integrazione) may do subordinate or self-employed work, provided they promptly notify the Italian Social Security Institute (INPS). Regardless of the type of work done or the income earned from such activity, a worker forfeits his/her entitlement to wage support for the days of other employment.

CONTRIBUTION DEBTS TO INPS AND INAIL
From 1 January 2025, to help businesses struggling economically, INPS and the National Insurance Institute for Industrial Accidents (INAIL) will have the authority to independently approve instalment plans for unpaid contributions that have not yet been assigned to a collection agency. These plans may extend up to a maximum of 60 monthly instalments, in accordance with the conditions outlined in a forthcoming Decree from the Ministry of Labour and Social Policies. As things currently stand, the approval of instalment plans of up to 60 instalments requires a decree from the Ministry of Labour.

SIMPLIFICATION FOR HEALTH SURVEILLANCE
Under the new rules, it will also be possible to undergo a “fitness-for-duty” medical examination for a specific role in the pre-employment phase. Furthermore, the occupational physician can decide to conduct a medical examination after absences exceeding 60 consecutive days before the employee resumes work. The physician may choose not to repeat clinical or diagnostic tests if they are already documented in the worker's medical records.

NEW MIXED LABOUR CONTRACT
In companies with more than 250 employees, professionals enrolled in professional associations or registers will have the option to be employed on a part-time permanent employment contract, with working hours ranging between 40% and 50%. At the same time, they may perform additional activities for the same company as self-employed workers using a VAT number, benefiting from the flat-rate tax regime for self-employment income.

The self-employment contract must be certified by the certifying bodies indicated in Legislative Decree 276/2003.