Draft law proposes significant changes to the employment relationship (update)

At a glance

 

• A draft law, dated 30 October 2023, is currently under debate. It would introduce significant changes to a number of different aspects of the employment relationship. 
• These changes include: the duration of probation periods, the termination of employment, and compliance with social security obligations.

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Update: 5 March 2024

Please note that activity has gone quiet on this draft and we are not expecting any imminent updates. 

A draft law, dated 30 October 2023, is currently under debate. It would introduce significant changes to a number of different aspects of the employment relationship. 

Duration of probation periods

The first change introduced by the draft law will have an impact on the duration of probation periods. The proposal is for employees to accrue one day for every 15 calendar days that they have been in employment (but more advantageous terms in a collective bargaining agreement will still apply). The duration cannot, however, be less than two days or more than 15 days for contracts of up to six months. For contracts that are between six and 12 months, this cap is set at 30 days. 

Termination of employment

The second noteworthy change introduced by the draft law is in regard to the termination of employment. An employment relationship will be understood as terminated by the employee where an employee is absent from work, for an unjustified reason, beyond the term which has been stated in a collective bargaining agreement or, in the absence of a contractual provision, for five days or more.  

Spontaneous compliance with social security obligations

The final change will have an impact on social security compliance. To simplify compliance for taxpayers, the National Social Security Institute (INPS) can invite employers to amend anomalies, errors or omissions in payments for social security contributions, that have been detected by the INPS. The employer will have to make these changes within 90 days of the invitation and they must make the social security contributions within the following 30 days. If they do not do this, they will be liable for a civil penalty which amounts to 2.75% of the amount of the contribution rate which is due.