2024 draft Labour Law: Key updates for Italian Labour Law

18 October 2024 2 min read

By Federico Strada and Tommaso Erboli

At a glance

  • New legal provisions for health and safety at work.
  • Employees on a furlough scheme can now engage in subordinate or self-employment activities.
  • Certain employees are now excluded from quantitative limits for fixed-term agency agreements.
  • Unjustified absence of more than 15 days can result in a deemed resignation by the employee, disentitling them to statutory termination payments and state benefits, unless the employee proves that unavoidable events prevented them from communicating with their employer.
  • Probation periods for fixed-term agreements are set based on the length of employment, with a minimum of two days and a maximum of 30 days.

The Italian government is currently debating a draft law that introduces significant updates to employment regulation.

Health and safety at work

The draft law modifies health and safety regulations, particularly regarding medical examinations for employees. It includes updates on preventive medical checks, health assessments before returning to work after illness, and the role of local health authorities in reviewing medical decisions. New rules also cover work in underground environments.

Employment and furlough scheme

The draft law allows employees on the furlough scheme to undertake subordinate or self-employment activities, as long as they notify the National Social Security Institute before starting the new job. However, they will lose their furlough scheme benefits while employed.

Agency work agreements

The new provisions:

  • exclude from the calculation of the quantitative limits for fixed-term agency agreements (currently 30% of the number of permanent employees at the end user) those employees hired by the agency on a permanent basis, or those with specific qualifications or hired for particular needs (eg seasonal activities, specific shows, start-ups, replacement of absent employees, employees over 50 years old); and
  • state that if the agreement between the agency and the employee is indefinite, the 24-month limit on the total duration of a fixed-term assignment with the end user does not apply.

Resignation: Termination for unjustified absence

The draft law stipulates that an employee’s unjustified absence for more than 15 days will lead to the termination of their employment by deemed resignation by the employee, unless the employee can demonstrate that unavoidable events, or employer-caused circumstances, prevented them from communicating the reasons for their absence. In addition, the employer is required to report the absence to the Labour Office, which has the authority to verify the validity of the notification.

The Illustrative Report highlights that this rule aims to balance the positions of both parties in cases where the employee intends to terminate the employment relationship but fails to complete the legal formalities, thereby allowing them to receive the unemployment allowance, which current legislation does not provide for voluntary resignations without just cause.

Probation periods

For fixed-term contracts, the probation period is determined as one working day for every 15 days of employment, with a minimum of two days and a maximum of 15 days for contracts lasting less than six months, and up to 30 days for longer contracts.