Decree-Law No. 73 of May 25, 2021: Employment Measures
- June 4, 2021
- Reading time: 9 min
As is well known, on May 25, 2021, Decree-Law No. 73 was published in the Offici Gazzetta , Issue No. 123, Decree-Law No. 73 was published in the Official Gazette No. 123 at . This decree, titled “Urgent Measures Related to the COVID-19 Emergency, for Businesses, Employment, Youth, Health, and Local Services,” better known as the “Sostegni bis” Decree, is a comprehensive measure through which the government sought to take further action to “address” the complex challenges caused by the COVID-19 pandemic.
Decree-Law No. 73/2021 took effect on May 26, 2021
Below is a summary of the most relevant measures related to employment, pending further details on future operational News s (and/or any additional information) from the relevant authorities.
ART. 40, PARAGRAPHS 1–3 – Additional provisions regarding wage supplementation and exemption from the additional contribution.
Article 40 of Decree-Law No. 73 of May 25, 2021, sets forth the measures available to employers covered by the CIGO program who need to suspend or reduce their operations and must resort to social safety nets following the CIGO COVID-19 program.
Please note that these employers may take advantage, through June 30, 2021, of the 13 weeks provided for by Decree-Law No. 41/2021 (the so-called “Sostegni Decree”), to be taken starting April 1. These weeks, in turn, follow the 12 weeks granted by Law No. 178/2020 and used during the period from January 1 to March 31, 2021.
Under the measure described in this circular, employers subject to the CIGO program may apply for:
Effective July 1, 2021, ordinary and extraordinary layoff benefits pursuant to Legislative Decree No. 148/2015 (without the application of the additional contribution through December 31, 2021) or, alternatively,
From May 26, 2021, through December 31, 2021, in the event of a 50% decline in revenue, the exceptional CIGS may be granted for a maximum duration of 26 weeks, subject to the conclusion of company-level collective agreements to reduce the working hours of current employees, with the aim of maintaining employment levels during the recovery phase following the public health emergency.
Focus:
Employers referred to in Article 8, paragraph 1, of Decree-Law 41/2021 (converted into Law 69/2021) who, in the first half of 2021, recorded a 50% decline in revenue compared to the first half of 2019, may apply for CIGS in derogation from Articles 4 and 21 of Legislative Decree 148/2015, for a maximum duration of 26 weeks, effective from May 26, 2021, through December 31, 2021.
As previously mentioned, this application is contingent upon the conclusion of company-level collective agreements (Art. 51 of Legislative Decree 81/2015) to reduce the working hours of employees on the payroll as of May 26, 2021, with the aim of maintaining employment levels during the resumption of business activities following the ongoing pandemic emergency.
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