News : August News
- August 26, 2020
- Reading time: 10 min
This document outlines the main changes in labor law introduced by the so-called August Decree (Decree-Law No. 104/2020), which entered into force on August 15, 2020, as the latest measure adopted by the Government to address the Covid-19 emergency.
In the review of the new regulations governing employment retention measures, some of the provisions introduced by the the “Cura Italia” Decree and the Relaunch Decree, to provide an overview of the emergency measures supporting businesses and workers (see also the summary table).
In addition to the main topic of social safety nets, other changes introduced by the August Decree will be discussed, such as: the exemption from paying social security contributions for companies that do not apply for temporary layoff benefits, employment-related contribution incentives, and regulations on fixed-term contracts, the extension of the ban on layoffs, further installment plans for suspended payments, and the doubling of the limit on corporate welfare benefits for 2020.
Ordinary unemployment benefits, ordinary unemployment allowance, and exceptional unemployment benefits
D. Cura Italia → Articles 19 through 22-quinquies, Decree-Law No. 18/2020, converted into Law No. 27/2020
This decree introduced three types of wage subsidies to address the same extraordinary event, lasting 9 weeks: CIGO, the ordinary allowance, and the exceptional fund.
Questions regarding ordinary unemployment benefits and the ordinary allowance, submitted to INPS, required prior notification, consultation, and where applicable, joint review with the trade unions that are comparatively more representative at the national level.
Upon the decree’s conversion into law, individuals are granted the opportunity to apply for the standard supplementary benefit for an additional period not exceeding three months, to employers with production facilities located in the so-called red zone, specifically:
with production facilities located in the municipalities identified in Annex 1 of the Prime Ministerial Decree of March 1, 2020;
AND for those
that do not have a registered office or a production or operational facility in the aforementioned municipalities, provided that the employees in question reside or are domiciled in those municipalities.
The application for special fund, submitted to the Regions, on the other hand, required prior agreement with the most representative trade unions at the national level for employers with more than five employees.
With regard to companies with multiple locations (companies with facilities in at least five regions or autonomous provinces), the application followed a simplified procedure involving its submission to the Ministry of Labor and Social Policies.
Upon the decree’s conversion into law, the option is granted—as provided for under the ordinary wage supplementation scheme and the ordinary allowance—to apply for the benefit for an additional period not exceeding three months, to employers with facilities or workers located in red zones.
Similarly, employers with production facilities—or, in any case, for their employees who are resident or domiciled—in the regions of Lombardy, Veneto, and Emilia-Romagna (the so-called “yellow zone”) are eligible for exceptional wage supplementation benefits for an additional period not exceeding four weeks, which may be authorized by the same granting order.
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