Law n. 122 of 7 July 2016 now provides for the transfer of undertakings regulations (article 2112 of the Italian Civil Code) to potentially apply to a change of contractor, in certain circumstances. This was not provided for in the previous regime.
Law n. 122/2016, replaces paragraph 3, article 29, of the Legislative Decree n. 276/2003 and provides that article 2112 of the Italian Civil Code will apply to a change of contractor unless two conditions are satisfied:
- The new contractor has its own organizational and operational structure;
- There is evidence of discontinuity with the previous contractor so that it is clear that the new contractor is a separate business entity.
By way of background, article 2112 of the Italian Civil Code provides that in the event of transfer of an undertaking, or of a branch, the employment relationship of the transferred employees continues, without interruption, with the transferee. The transferee must ensure that the rights acquired by the employees with the transferor are maintained, including any remuneration and regulations under collective agreements in force with the transferor, until their expiry (unless they are replaced by the transferee with other collective agreements of the same level).