The latest news on labor and social security

News No. 34/2024

This News summarizes the latest developments in labor and social security matters.

List of topics covered

1) News on the secondment of personnel: from 01.01.2025 it will be subject to VAT

2) Decree Saving Infringements and news on fixed-term contracts

3) Publication of the New Skills Fund Decree 2024

4) Supplementary Agreement CCNL Terziario - Confcommercio of 31.10.2024 on professionalizing apprenticeship

5) Contractual renewal of the National Collective Labor Agreement for Managers of Companies Producing Goods and Services (CCNL Industrial Managers)

6) Inps News with the instructive indications for the processing of applications for wage supplementation for employers and workers in the fashion sector

7) Inps instructions on the contribution exemption due in the event of hiring personnel benefiting from Inclusion Allowance (ADI) or Support for Training and Work (SFL)

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1)   News on the Secondment of Personnel: from 01.01.2025 it will be subject to VAT

With Law no. 166 of 14 November 2024, in force since 15 November 2024, converting Decree No. 131 of 16 September 2024, the Legislator has ordered the repeal of paragraph 35 of Article 8 of Law No. 67/1988, which provided for the irrelevance for VAT purposes of the secondment of employees, in the event of payment by the seconded party of a fee equal to the costs incurred by the seconding employer (secondment of personnel against which only the reimbursement of the relative cost is paid).

Consequently, starting from January 1, 2025, the sums paid for loans/secondments of personnel will become subject to VAT.

The technical report of the provision highlights that "the subjection to VAT of these reimbursements determines a value added tax due by the seconding party and a value added tax receivable by the seconded party. Since both are VAT operators, the VAT paid by the first subject would correspond to a VAT deduction of the same amount by the second subject, with neutral effects on the overall revenue of the tax". However, this neutrality may not be guaranteed if the seconded party is a VAT subject with a limitation on the right to deduct input VAT. For example, for a seconded party operating under a VAT exemption regime, the subjection to tax of the secondment of personnel essentially translates into a higher cost.

The behaviors adopted by taxpayers before January 1, 2025, for which definitive assessments have not been made, are unaffected.

The repeal of the provision responds to the need to implement the judgment of the Court of Justice of the European Union of 11 March 2020, case C-94/19, relating to the preliminary question raised by the Court of Cassation regarding 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 rule was necessary in order to avoid the opening of an infringement procedure for failure to implement the aforementioned judgment.

2)   Decree Saving Infringements and news on fixed-term contracts

Decree No. 131 of 16 September 2024 (the so-called "Decree Saving Infringements") also intervened on the discipline of fixed-term employment contracts, following up on the indications of the infringement procedure with which the European Union requested Italy to align domestic legislation with Community Directive 1999/70/EC on fixed-term work. Consequently, the legislator has changed Article 28 of Legislative Decree no. 81/2015 "expiries and protections", introducing the possibility for the judge to recognize compensation even in excess of 12 months' salary, if the worker proves to have suffered greater damage, and has eliminated the reduction in monthly payments possibly referred to collective bargaining.

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