Synthesis of Law Decree 137/2020

Law Decree 137/2020, the so-called “Ristori Decree”, came into force with effect on October 29 2020. Here below a brief summary of the relevant provisions of immediate interest related to employment.

Suspension of dismissals

The suspension of dismissals for organizational or economic reasons, both individual and collective, is extended until 31 January 2021 with the sole exception of the cases already provided by Law Decree 104/2020 (dismissals motivated by the definitive cessation of the company’s activities or bankruptcy, agreement with the Union providing incentives to terminate the employment relationship, change of contractor).

CIG Covid-19 extension, social contribution suspension and deferral of related payment

The CIG Covid-19 social bumper is extended by 6 weeks (applicable from 16 November 2020 to 31 January 2021) for companies that have already full benefited from the last installment of CIG Covid-19 provided by Law Decree 104/2020 and for companies affected by the restrictions provided by the Prime Ministerial Decree of 24.10.2020. The access to CIG Covid-19 is free of charge for companies (i) affected by the restrictions provided for by the Prime Ministerial Decree of 24.10.2020, (ii) started after 1.1.2019 and (iii) that have suffered losses in turnover of more than 20% (first three quarters of 2020 compared to the same period of 2019). All the other companies can apply to CIG Covid-19 by paying a contribution of 9% (in the event of a reduction in turnover of less than 20%) or 18% (in the event of no reduction in turnover) of the overall salary that would have been due to the employees for the hours not worked during the suspension or reduction of work.

Companies not using the CIG Covid-19 can apply for a 4 weeks-period of social contribution exemption, until 31 January 2021, within the limits of the hours of wage supplementation already used in June 2020, excluding INAIL premiums and contributions. The measure constitutes “state aid” and is subject to authorisation by the European Commission.

For companies belonging to the sectors indicated by the Prime Ministerial Decree of 24.10.2020 with activities mainly belonging to the ATECO codes attached to the Ristori Decree, the payment of INPS and INAIL contributions will be suspended in relation to the month of November 2020 with deferral of the related payment (also through consecutive four-monthly instalments) until 16 March 2021.

Agile work and absence from work in case of school quarantine

Employees may perform their activity remotely during the period of mandatory quarantine for school contacts or suspension of teaching activities at school of their cohabiting child up to the age of 16.

The possibility of taking extraordinary parental leave for employees during the period of mandatory quarantine of the cohabiting child is extended to cases where the suspension of teaching activities at school has been provided for the cohabiting child under 14 years of age.

Employees who are parents of children between 14 and 16 years of age have the right to a parental leave without payment of salary or indemnity, nor social contributions with a protection from dismissal and the right to maintain the job for the whole duration.