Hiring of disadvantaged women: initial findings

In News . 32/2021, INPS provided initial guidance regarding the tax exemption for the hiring of disadvantaged female workers, an exemption that the 2021 Budget Law (see Art. 1, para. 16 of Law 178/2020) has increased from 50% to 100% for the two-year period 2021 and 2022, up to a limit of €6,000 per year.

Below is a summary of the key points of the circular issued by the Institute.

First, it should be noted that approval from the European Commission is still pending regarding the eligibility for this benefit. Therefore, as of today, the measure is not yet in effect.

In a subsequent notice, once the procedural process has been completed, INPS will provide instructions on how to take advantage of the statutory measure in question, including with regard to the handling of past periods, effective January 1, 2021, when the measure takes effect.

The agency, applying a broad interpretation of the provision introduced by the Budget Law, has recognized that the incentive applies not only to permanent hires and the conversion of a previous subsidized employment relationship into a permanent one, but also to fixed-term hires.

ELIGIBLE EMPLOYERS

The circular specifies that the incentive is available to all private employers, including:

• "Entrepreneurial" employers as defined in Article 2082 of the Italian Civil Code, that is, those who professionally carry out an organized economic activity for the purpose of producing or exchanging goods and services. This classification also includes public economic entities, as well as public bodies undergoing privatization (conversion into joint-stock companies), regardless of whether the capital is publicly or privately owned, land reclamation consortia and industrial consortia, and moral and ecclesiastical entities;

• agricultural employers;

• "non-business" employers, such as cultural, political, or labor organizations, volunteer groups, professional firms, etc.

The incentive does not apply to public administration entities or domestic employers.

PERSONS ELIGIBLE FOR EXEMPTION

Pursuant to the reference made in Article 1, paragraph 16, of the 2021 Budget Law to Article 4, paragraphs 9 through 11, of Law No. 92/2012, INPS clarifies that the exemption applies to the hiring of disadvantaged female workers.

The following categories fall under the definition of "disadvantaged women" (Article 4, paragraphs 8 through 11, of Law No. 92/2012):

• women aged 50 or older who have been unemployed for more than 12 months;

• women of any age who reside in regions eligible for funding under the European Union’s Structural Funds and who have been without regular paid employment for at least six months. With regard to this category, it should be noted that, in order to meet the requirement, the worker must be a resident of one of the areas identified in the Regional Aid Map 2014–2020, approved by the European Commission on September 16, 2014, and subsequently amended by a decision of the same Commission on September 23, 2016. In this regard, it should be noted that there are no time limits regarding the duration of the residency requirement in the disadvantaged areas specifically designated in the aforementioned Map, and that the employment relationship may also take place outside the indicated areas;

• women of any age who work in professions or occupations within economic sectors characterized by significant gender-based employment disparities and who “have been without regular paid employment for at least six months.” These sectors and professions, referred to in Article 2(4)(f) of Regulation (EU) No. 651/2014, are, as provided for in the decree of the Minister of Labor and Social Policies, in consultation with the Minister of Economy and Finance, dated April 16, 2013, and reiterated in Circular No. 34/2013, “identified annually by decree of the Minister of Labor and Social Policies, in consultation with the Minister of Economy and Finance,” based on data collected by ISTAT. For the purposes of legitimate recognition of the benefit, the unemployed woman must be hired in a sector or profession included in the list set forth in the aforementioned decree;

• women of any age, regardless of where they reside, who “have not had regular paid employment for at least twenty-four months.” In this regard, it should be noted that, for the purposes of meeting this requirement, the 24-month period preceding the date of hire must be considered, and it must be verified that during that period the worker in question did not perform any employment under a contract of at least 6 months’ duration or any coordinated and continuous collaboration (or other work as referred to in Article 50, paragraph 1, letter c-bis) of Presidential Decree No. 917 of December 22, 1986, known as the TUIR) with annual remuneration exceeding €8,145, or self-employment generating a gross annual income exceeding €4,800.

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