newsletter t&p n°56 eng
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8/2/2019 Newsletter T&P N56 Eng
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EditorialLike the others, the month of March does not fall short of its fair share of
changes in the area ofEmployment Law. On 23 march, indeed, the Council of
Ministers approved- provided approval - the Bill on the Reform of the Labor
Market to Ensure Growth.
The Bill aims to introduce substantial modifications regarding a number of typesand forms of employment contracts (fix-term contracts, internship,
apprenticeship, contracts on project, etc) designed, on the one hand, to
incentivize options for some types of contracts (primarily, apprenticeship) and,
on the other hand, to incentivize options for other types of employment
contracts (as collaboration and on-going contracts and fix-term contracts). As is
well known by now, the Bill also intends to reform the historical article 18 of the
Statute of Workers, the which has been fuelling fierce discontent and
controversies over the last weeks, and to reform the social net and other
standards that protect seniority workers, female workers, the differently abled
and mothers, etc. Our Focus feature outlines the provisions of the Bill and
examines its main points.
From the standpoint to court practice, we publish an interesting and recent
sentence of the Court of Appeal of Cagliari on the controversial issue of
recovery of contribution benefits on Contracts for Vocational Training
(CFL) which are found unlawful by the European Commission. The Court held
that the 5-year statute of limitation laid down by Italian legislation apply. Also, a
decision of the Tribunal of Bergamo, on an all-too disquieting issue, regards the
request for damage compensation for ascertained exposure to
asbestos, and two decisions of the Tribunal of Milan regarding
unjustified absence not falling inside the period of prognosis reported in
the medical certificate, which unjustified facts were ground to determine the
amount of employment termination indemnity of the agency contract.
The Civil. Commercial and Insurance Law section dedicates its Focus on
the new provisions concerning websites exclusively dedicated to health
as published in the Official Gazette n 42, 20 February 2012, and deals with a
recent decision on the issue of an action to set aside. Our Insurance section
includes a number of rulings on the merits .
Our Information Brief examines the Apprenticeship contracts in light of the
recent interventions of the Regions and of collective agreements. Such
form of contract, as would appear from the Bill on labor market reform, is set to
play an increasingly important role.
Marina Tona and the editorial staff: Francesco Autelitano, Stefano
Beretta, Antonio Cazzella, Teresa Cofano, Luca DArco, Diego Meucci,
Claudio Ponari, Vittorio Provera, Tommaso Targa, Stefano Trifir and
Giovanna Vaglio Bianco
Employment Law
Focus 2
Firm Cases 4
Civil Law,
Commercial,
Insurance
Information brief 6
Contacts 7
http://www.lavoro.gov.it/Lavoro/PrimoPiano/20120323_Riforma_Mercato_Lavoro.htmhttp://www.lavoro.gov.it/Lavoro/PrimoPiano/20120323_Riforma_Mercato_Lavoro.htmhttp://www.lavoro.gov.it/Lavoro/PrimoPiano/20120323_Riforma_Mercato_Lavoro.htmhttp://www.lavoro.gov.it/Lavoro/PrimoPiano/20120323_Riforma_Mercato_Lavoro.htmhttp://www.lavoro.gov.it/Lavoro/PrimoPiano/20120323_Riforma_Mercato_Lavoro.htm -
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THE PROJECT TO REFORM ART. 18
ISDISMISSEDBy Tommaso Targa
The Council of Ministers has approved 23 March 2012, on condition of approval, the Bill on
the Reform of the Labor Market to Ensure Growth.
The first part of the Bill is aimed at discouraging the abuse of "flexible" employment. Fix-
term contracts may no longer be obliged to mention the reason of the first contract underwritten by
the parties and they may extend the minimum period between a contract and another (from 10 or 20
days), provided the first contract lasted over or under 6 months, to a longer period of 60 or 90 days.The contract may also go beyond the expiry date and include the contracting out in the count of the 36
months ceiling for fix-term contracts agreed between the parties. Also, the period to impugn the
contract moves from 60 to 120 days and contributions rise by 1.4%. Contracts on projects may not
apply to executive or repetitive tasks. The notion of project is narrowed down and may not include
the concept of "program"; early termination is banned and the presumption of permanent employment
is assumed where the tasks are not different from those carried out by payroll employees. Presumption
is absolute where the notion of project is non-existent. As regards VAT, presumption of permanent
employment contract is assumed where employment lasts more than 6 months under the same
employer.
The revised apprenticeship contract should come to be the prevailing form of contract for first
jobbers. Fiscal incentives, hiring of people out of work for at least 12 months, insertion of workers aged
over 50 and obligation to notify in advance the administration for on-call and part-time contracts, vertical
and mixed. In the latter cases, workers may unilaterally change their mind on relevant personal
grounds. Ancillary and internship jobs are modified to some extent and association in participation
restricted to the sole first grade members of a family are qualified.
As regards individual dismissals, the Bill distinguishes three types of cases and retains reinstatement
only for the first: a) where illegitimacy stems from substantial causes (wrongdoing absent or sanction
disproportionate), or cause is malady or supervening disablement. In such cases the worker is entitled
to reinstatement, but compensation is limited to 12 monthly remuneration less earnings in themeantime; b) in other cases where illegitimacy is ascertained the Bill provides only for a
compensation indemnity between 15 and 27 monthly remuneration; c) in cases of dismissals flawed in
their procedure, the employee is entitled to an indemnity reduced to between 7 to 14 monthly
remuneration, provided the flaw is substantial in nature.
The Bill needs to clarify its distinction between the three cases. In particular, it is not clear to what extent
the subject matter which falls inside b) is in any way different from dismissals unfair on the merit or, by
the same token, from those invalid on flawed procedure. It would be necessary, in addition, to specify
the legitimacy of the dismissal notified, while in state of illness, for disciplinary reasons extraneous to the
said state.
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In case of dismissal for objective and justified motive, (renamed economic, even though the
subject matter should not necessarily be inclusive of cost-cutting measures), reinstatement is excluded
and where it is ascertained that the motive invoked is non-existent, the employee is only entitled to anindemnity between 15 and 27 monthly remuneration, save proof that the employer pursued a
discriminatory intent by dismissing the employee (which corresponds to the contours of the first type of
case). On the point, the Bill provides for the introduction of a form of conciliation procedure that carries
little conviction insofar as it might incite the worker to adopt a dilatory comportment.
The third part of the Bill regards the social net. The social insurance for employment (ASPI) is
destined to progressively play an over-arching role over the current unemployment and mobility
benefits, for periods between 12 to 18 months benefits. The maximum amount for unemployment
benefits is to remain at 1.119,32. Workers not previously under permanent employment contracts are
not expected to draw indemnity benefits. Where the working position at the company is not expectedto remain during the idle time caused by forced reduced productive capacity, the bureau of
unemployment complementary benefit for idle-time workers is expected to cease its activity.
With regards to equal employment opportunity and affirmative action, the procedure for resignations
handed in the first three years of life of a new born is to be reintroduced, paternal leave amounting to
three to four running days, to be used during the first 5 months of the child, is to be made obligatory,
quotas for disabled should be more scrupulously enforced and dismissed immigrants who draw
unemployment benefits may retain their sojourn permit as long as they are entitled to draw their benefits.
As the Bill is to be amended and changed by parliament, our subsequent newsletters will keep
you informed of the developments.
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Ruling of the MonthSTATUTE OF LIMITATION (FIVE YEARS) PRESCRIBED BY ITALIAN LAW BAR SOCIAL SECURITY
FROM RECOVERING CONTRIBUTION BENEFITS GENERATED UNDER THE CONTRACTS FOR
VOCATIONAL LEARNING (CFL) SCHEME, HELD AS UNLAWFUL BY THE EC
(Court of Appeal of Cagliari - Employment Section, 9 March 2012)
Before going into the merits of the case it is not unnecessary to remind readers that Contracts for
Vocational Training (CFL) were widely used before the Biagi Act came into force in 2003. It is worth alsoreminding that Act #863/1984 and subsequent modifications and amendments enabled companies to
hire under such type of contract young people aged between 16 and 32, and enjoyed a reduction of
contributions of 25 or 40%, reaching even 100% according to the territorial location of the enterprise.
On May 11, 1999, the European Commission declared that reduced contributions granted Italy, as from
November 1995, to recruit people by way of contracts provided for by Act #863/1984, and under
decisions n 407/1990, n 169/1991 and n 451/1994, qualified as state help compatible with the
common market and with EC accord provided they concerned: a) the creation of new jobs in the
benefiting enterprise in favor of workers who had not found an employment yet or who has lost their
previous job under the terms provided for by the legislative provisions on support to employment, b) the
hiring of workers who face specific difficulties in entering or re-entering the labor market, that is, the
young under 25; graduates aged until 29 inclusive and long unemployed people, in other words,
people jobless for at least a year.
As a consequence of the EC decision, Italy was requested to recover all the contributions of such
companies as had hired people on grounds and criteria other than those qualified in the scheme.
The problems involves a large number of companies who claimed, inter alia, the statute of limitation of
contributions to Social Security, the burden of proof of said and the absence of clear amounts as
requested by Social Security, and the conformity of the companies with the qualifications for fiscal
incentives then in force.
The Court of Appeal of Cagliari confirmed the lower court ruling and affirmed a principle, firmly
questioned by Social Security, whereby beneficiaries of incentives contrary to EC law (and, therefore,
inclusive of companies) may dispute the recovery intended against them also invoking the statute of
limitation to the obligation of restitution.
Moreover, the Constitutional Court had already laid down in its decision 125/2009 that application of
national legislation on the statute of limitation may not be viewed in contrast with EC legislation insofar as
the five-year statute of limitation is reasonable according to the court practice of the European Court of
Justice itself and provides sufficient time for Social Security to proceed with due diligence to the
recovery of state relief.
(Counsels: Luca DArco and Marina Tona)
FIRM CASES
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FAQWhether the installation of devices to check the presence of employees at work should
conform with the procedure as at art. 4 of the Statute of Workers (namely, by way of an
accord between unions/administrative authorization).
There are two conflicting views on this issue. For some, such devices do not fall inside the
restrictions as at art.4 of the Statute of Workers though they do exercise a control over
working activity. Such control is in plain sight and could not be viewed as injurious to the
intimacy of the employee who activates it of his own initiative by clocking, in coincidence withthe beginning or the end of the working day. For others, instead, such devices fall inside the
restrictions as at art. 4. For such reason, prudence suggests that trying out with said art. 4 is
the better solution. This could be done by way of the installation of an automatic presence
monitoring device that not only helps compute work hours for pay stipend purposes, but also
verifies in the event cases of non-performance by the employees, which may be conducive to
disciplinary action (for instance, non respect of work hours, lateness, etc). In failing to adopt
the second option one runs the risk of seeing one's grievances or claims found illegitimate.
COURT OF CASSATION NEWSLINEBy Stefano Beretta and Antonio Cazzella
EFFICACY OF DISMISSAL FOR ORGANIZATIONAL PURPOSE
The Court of Cassation passed sentence #3547, 7 March 2012, confirming a consolidated
practice whereby, where illness supervenes upon notification of dismissal for organizationalmotives, the efficacy of the termination is suspended for the whole duration of the illness. In the
case at hand, the executive who had been notified dismissal for organizational reasons had
managed to avoid the reading of the dismissal letter and its notification by letting it be
understood that he was willing to find an amicable accord. From the day following said
notification he had not appeared at work on the ground of illness (which lasted one year). The
judges pointed out that the prospect of losing one's job is more often than not conducive to a
state of anxiety and depression. The employer, in spite of having proved the organizational
motive of the case and, therefore, the legitimacy of the dismissal, was however unable to prove
premeditation of the employee to shed temporarily the efficacy of the dismissal by sending a
medical certificate, nor did he prove that the medical complaint was non existent or that the
medical certificate was untrue.
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Civil, Commercial,
Insurance Law
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INFORMATION BRIEFBy Vittorio Provera
Without going back on the major points of the reform of apprenticeship (such as, for instance, the necessity
of a written contract mentioning the so-called learning program; the impossibility to discontinue the
contract before the expiry of the qualifying period; the necessity of a tutor; the possibility to assign at the
outset a professional status inferior to the one to be assigned at the end of the learning period, etc), we
would like to underscore some points on learning that are provided for in the Collective Agreement for
employee working for professional firms and service companies.
Firstly the accord provides for so-called transversal learning, which regards substantially aspects such as
valuation of the learning program; inter-personal and communication skills; knowledge of a second and thirdforeign language; training on the knowledge of employment relationships and on the organization of the firm or
enterprise; workplace safety and hygiene.
Also, there are provisions for so-called profession-oriented or trade learning, which regards knowledge of
services offered by consultancy industry; knowledge of the technical and theoretical basis of the professions and
activities pursued, as well as their full application inside the firm or the service company; knowledge and capacity
to use working techniques and methods, inclusive of tools and information technology; knowledge and use of
environment safety and protection standards.
No less interesting is the fact that the Collective Agreement provides that the training be transversal both in its
basis and as profession oriented may be carried out also by way of e-learning and in such case the support
activity may be returned under virtual form by way of telematics and distance video communication.
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ContactsMilan
20122 Milano
Via San Barnaba, 32
Tel.: + 39 02 55 00 11Fax.: + 39 02 54 60 391;+ 39 02 55 185 052;+ 39 02 55 013 295
Rome
00195 Roma
Piazza Giuseppe Mazzini, 27
Tel.: + 39 06 3204744;+ 39 06 37351176Fax.: + 39 06 36000362
Turin
10121 Torino
Via Raimondo Montecuccoli, 9
Tel.: + 39 011 52 10 266Fax.: + 39 011 51 19 137
Trento
38122 TrentoVia Galileo Galilei, 24
Tel.: + 39 0461 26 06 37Fax.: + 39 0461 26 44 41
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@TrifiroPartners
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