The latest news on employment and social security
- Studio Piceci
- November 29, 2024
- Reading time: 10 min
Update: December 2, 2024
News . 34/2024
This News summarizes the latest news on employment and social security.
List of topics covered
1) News on the secondment of personnel: from January 1, 2025, it will be subject to VAT.
2) Decree on Infringements and new developments regarding fixed-term contracts
3) Publication of the New Skills Fund Decree 2024
4) Supplementary Agreement to the National Collective Labor Agreement for the Tertiary Sector - Confcommercio of October 31, 2024 on professional apprenticeships
5) Contract renewal of the National Collective Labor Agreement for Executives of Goods and Services Manufacturing Companies (CCNL Industrial Executives)
6) News with preliminary instructions for processing applications for temporary layoff benefits for employers and workers in the fashion industry
7) INPS instructions on the contribution exemption applicable in the case of hiring personnel receiving the Inclusion Allowance (ADI) or Training and Work Support (SFL)
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1) News on the secondment of personnel: from January 1, 2025, it will be subject to VAT
With Law No. 166 of November 14, 2024, in force since November 15, 2024, converting Decree No. 131 of September 16, 2024, the "Salva Infrazioni" (Save Violations) Decree No. 131 of September 16, 2024, the Legislator repealed paragraph 35 of Article 8 of Law No. 67/1988, which provided for the non-relevance for VAT purposes of the secondment of employees, in the event of payment by the recipient of a fee equal to the costs incurred by the seconding employer (secondments of personnel for which only the reimbursement of the related cost is paid).
Consequently, starting from January 1, 2025, sums paid for loans/secondments of personnel will become subject to VAT.
The technical report accompanying the provision highlights that "the application of VAT to such reimbursements results in a value added tax liability for the seconding entity and a value added tax credit for the receiving entity. Since both are VAT operators, the VAT paid by the first entity would correspond to a VAT deduction of the same amount by the second entity, with a neutral effect on the overall tax revenue." However, this neutrality may not be guaranteed if the recipient is a VAT operator with a limited right to deduct VAT. For example, for a recipient operating under a VAT exemption regime, the taxation of staff secondment essentially translates into higher costs.
This is without prejudice to conduct adopted by taxpayers prior to January 1, 2025, for which no final assessments have been made.
The repeal of the provision responds to the need to implement the judgment of the Court of Justice of the European Union of March 11, 2020, case C-94/19, concerning the preliminary ruling raised by the Court of Cassation on the compatibility of Article 8, paragraph 35, of Law No. 67/1988 with the provisions of the European VAT Directive. Therefore, the repeal of the provision was necessary in order to avoid the opening of infringement proceedings for failure to implement the above judgment.
2) Decree to Save Infractions and news on fixed-term contracts
Decree No. 131 of September 16, 2024 (known as the "Decreto Salva Infrazioni" or "Infringement Decree") also intervened on the regulation of fixed-term employment contracts, following up on the infringement procedure with which the European Union requested Italy to align its internal legislation with EU Directive 1999/70/EC on fixed-term work. Consequently, the legislator amended Article 28 of Legislative Decree No. 81/2015 "forfeitures and protections," introducing the possibility for the judge to award compensation in excess of 12 months' salaryif the worker can prove that they have suffered greater damage, and eliminated the reduction in months of salary that may have been subject to collective bargaining.