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Employment Law Overview Italy 2021-2022 LABLAW — Studio Legale / Proud Member of L&E GLOBAL

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Employment Law Overview Italy 2021-2022 LABLAW — Studio Legale / Proud Member of L&E GLOBAL EMPLOYMENT LAW OVERVIEW ITALY 2021-2022 LABLAW — Studio Legale / Proud Member of L&E GLOBAL EMPLOYMENT LAW OVERVIEW an alliance of employers’ counsel worldwide 2021-2022 / ITALY | 1 www.leglobal.org TABLE OF CONTENTS. I. GENERAL OVERVIEW 03 II. HIRING PRACTICES 08 III. EMPLOYMENT CONTRACTs 10 IV. WORKING CONDITIONs 12 V. Anti-DiscriminAtion LAws 14 VI. PAY EQUITY LAWS 16 VII. SOCIAL MEDIA AND DATA PRIVACY 17 VIII. TERMINATION OF EMPLOYMENT CONTRACTs 18 IX. RESTRICTIVE COVENANTS 25 X. TRANSFER OF UNDERTAKINGS 27 XI. TRADE UNIONS AND EMPLOYERS ASSOCIATIONS 28 XII. EMPLOYEE BENEFITS 31 EMPLOYMENT LAW OVERVIEW an alliance of employers’ counselcounsel worldwideworldwide 2021-2022 / ITALY | 2 I. GENERAL OVERVIEW 1. INTRODUCTION Italian employment laws have always been employee-friendly, reflecting the principles of the Italian Constitution. However, the global economic downturn has forced Italian lawmakers to look at ways to enhance flexibility within the Italian job market. The most recent Italian reform on labour law, the so called Jobs Act, has granted more flexibility to the employers through: i) a “gradual” protections against unfair dismissals, directly linked to the length of service; ii) the possibility under certain conditions, to downgrade employees; and iii) the possibility, under certain conditions, to utilise for disciplinary purposes, the content of company mobile devices granted to the employees, to stimulate new hires and attract new foreign investment into Italy. Italy is going through important political, social and legal changes at the moment and employment lawyers are witnessing first-hand how this impacts businesses and the Italian workforce. Italian employment law is still a work in progress and the end product will hopefully be worthy of the prestigious label: “Made in Italy”. 2. KEY POINTS 3. LEGAL FRAMEWORK • For each industry sector there is a National In Italy, individual contracts of employment and Collective Bargaining Agreement (hereinafter, labour relationships are governed, in order of also, “NCBA”) that regulates the employment priority, by: relationship. • Companies with more than 15 employees come First. The Republican Constitution: sets forth under the umbrella of the Workers’ Statute. general principles and regulates some issues • Italian labour laws and National Collective concerning employment. Bargaining Agreement provisions may only be amended by employers in a more favorable way Second. The Civil Code: The Civil Code, enacted for the employees. in 1942, regulates employment and labour • The collective dismissal procedure shall be matters under Section III (“On the employment followed when at least 5 dismissals for economic relationship”), articles 2094-2134. reasons will be served within 120 days by a company with more than 15 employees. Third. Laws enacted by Parliament: Italy has • Executives are included in the calculation that extensive employment and labour legislation; triggers a collective dismissal. the objective has traditionally been to protect • The obligation to give a reason for entering into employees. a fixed-term contract has been re-introduced for such agreements, if exceeding 12 months. Fourth. Regulations issued by authorities other • Reinstatement is no longer the sole remedy for than Parliament and the government. unfair dismissal. Fifth. National Collective Bargaining Agreements. EMPLOYMENT LAW OVERVIEW an alliance of employers’ counsel worldwide 2021-2022 / ITALY | 3 Sixth. Custom and practice – The customs and As of 12th March 2016, resignations, mutual practices of the parties to an employment terminations and their revocations must be filed relationship apply where the issue is not governed electronically by employees, on the Government by legal provisions or by the provisions of a collective website, following a specific procedure set forth agreement. Moreover, those customs and practices by the Minister of Labour Decree published on 11 that are more favourable to employees prevail over January 2016. There is a heated on-going debate legal provisions, but do not prevail over individual in Italy regarding data privacy and monitoring from employment agreements. a distance, also considering the new law and in anticipation of the guidelines from the relevant Furthermore Italy, as one of the member states Authority, also at European level. of the European Union (EU), having signed the Treaty of Rome on March 25, 1957, is subject to EU In this regard, please note that, according to a directives and regulations and to the decisions of Ruling of the Italian Court of Cassation issued on the European Court of Justice. 27th May 2015, it is not unlawful for an employer to create a fake Facebook profile in order to uncover employees’ negligence. According to the Court, 4. NEW DEVELOPMENTS the employer’s behaviour was lawful and valid because, while always respecting the employees’ Thanks to the Jobs Act (Law no. 23/2015), for dignity and freedom, monitoring employees is employees hired under an open-ended contract allowed if the purpose is not to evaluate the after 7th March 2015, the so-called “employment working performance but, for example, to avoid contract with growing protections” there is now in risk of damage to company property. place a different set of remedies in the event of an employee’s success in an unfair dismissal claim. A. ‘DIGNITY DECREE’ AND ITS In the majority of cases the remedy is damages, MOST SIGNIFICANT PROVISIONS which is calculated on the basis of the dismissed CONCERNING EMPLOYMENT employee’s length of service with the company. Reinstatement has now become the exception RELATIONSHIP rather than the rule. On July 14, 2018, the so-called “Dignity Decree” As from 25th June 2015, an employer may (Law Decree n. 96/2018) was issued. Following unilaterally change an employee’s duties and parliamentary commissions’ amendments, on tasks to those corresponding to a lower job level August 12, 2018, Decree’s conversion law (Law no. (note that the employee remains in the same job 96/2018) entered into force. category, with the same salary), if the following conditions are met: The mentioned Decree introduced very important innovations concerning many employment law • there have been changes to the company’s matters such as fixed-term contracts, supply of organisational set-up, involving the job position work, and penalties in the event of illegitimate of the relevant employee; dismissal as provided by the so-called Jobs Act • the National Collective Bargaining Agreement (for open-ended contracts stipulated after March provides so; 2015). • there has been a specific agreement signed before the Public Employment Offices. The new provisions respond to the Government purpose of fighting the issue of unstable As of 24th September 2015, employers are allowed employment. to access the content of company devices given to employees to perform their job (e.g. smart phone, Please find below a brief overview of the most personal computer, tablet), and such content may significant reforms concerning employment be used for the purpose of disciplinary sanctions. contracts, with specific reference to issues, which have mostly attracted the public attention, because of their significant impact on business organisations. EMPLOYMENT LAW OVERVIEW an alliance of employers’ counsel worldwide 2021-2022 / ITALY | 4 b. FixeD-term contrActs In case of execution of a fixed-term contract longer than 12 months, in the absence of one of the specific abovementioned “conditions”, the A term of no more than 12 months may be applied agreement is converted into an open-ended one, to employment contracts. as of the date in which the limit of 12 months is exceeded. A further term, in any case no longer than 24 months (instead of 36 months, as previously provided by Legislative Decree no. 81/2015), may C. TRANSITIONAL PERIOD be applied only in the presence of at least one of the following “conditions”: The new provisions apply to fixed-term contracts stipulated after the entry into force of the decree, • temporary and objective needs, unrelated to the namely 14 July 2018, as well as to fixed-term ordinary activity, for other employees’ substitute contract extensions and renewals carried out after needs; 31 October 2018. • requirements connected to temporary, significant and non-predictable increases of the ordinary In summary, please find below a brief scheme of activity. the transitional period discipline concerning fixed- term contracts. The above-mentioned “conditions” shall be provided also in case of extensions of already pending fixed-term contracts exceeding 12 months, or in case of renewals. Given the maximum duration abovementioned, contract extensions cannot be more than four (instead of the previous five, provided by Legislative Decree no. 81/2015). Fixed-term contracts signed Fixed-term contracts signed WITHIN 13 JULY 2018 STARTING FROM 14 JULY 2018 WITHIN FROM 31 OCTOBER 2018 1 NOVEMBER 2018 Maximum 12 months 36 months 36 months term (24, only in the presence of conditions) Extensions Maximum of 4, Maximum of 4, maximum Maximum of 5 Conditions have to Conditions have to number and No conditions be provided after 12 be provided after 12 conditions months months Renewals No conditions to Conditions have to Conditions have to conditions be provided be provided be provided EMPLOYMENT LAW OVERVIEW an alliance of employers’ counsel worldwide 2021-2022 / ITALY | 5 Fixed-term contracts entered into with executive’s Additional penalties have been introduced as apprenticeships are not subject
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