Coronavirus - Government measures in key jurisdictions - Flipbook - Page 51
Italy
2
Employment
The Italian Government introduced the following schemes to support businesses:
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
A. Social programs: if an employer must suspend employees from work since the
business activity has been suspended or reduced due to the COVID-19 emergency,
it can apply for the following social funds (wage subsidy schemes):
1. Cassa Integrazione Guadagni Ordinaria (CIGO): available to industrial companies
staffed with more than 15 employees.
2. Fondo d’Integrazione Salariale (FIS): available to non-industrial employers
enrolled with FIS that are staffed, as an average, by more than 5 employees.
3. Cassa Integrazione Guadagni in deroga (CIGD): available to all businesses, even
very small ones, that are not covered by CIGO/FIS. It is managed at a Regional level
and so each Region has its own procedure and bureaucracy.
Under the above schemes, which normally imply a consultation with the Trade Unions
before being implemented, employees who are suspended from work receive an
allowance from the social security authority (“INPS”) equal to 80% of the lost salary with
a cap of €1,129 net per month. These schemes can apply only to employees who were in
force on 17 March 2020 and cover a period of 9 weeks.
In parallel, the Italian Government introduced a temporary firing ban: until mid-May
it is not possible to make employees redundant either on a collective or an individual
basis (some categories are excluded, such as executives or domestic employees). It is
however expected that this ban will be extended.
•
B. Deferred payment of social security contributions:
1. The payment of social security contributions due in April and May 2020 is
suspended (and can be made by June 30) for (i) companies that incurred at least
in a 33% monthly turnover reduction if their yearly turnover is up to €50 million; (ii)
companies that incurred at least in a 50% monthly turnover reduction if their yearly
turnover is over €50 million. In both cases the reduction refers to the months of
March and April 2020 compared to the same months of FY 2019.
2. The payment of social security contributions is also suspended until 30 April
(and can be made by 31 May 2020) for companies operating in business sectors
severely affected by COVID-19 (such as sports, art, culture, tourism, transport,
education, entertainment and catering).
The Italian Government also introduced the following new and exceptional schemes
to support individuals:
•
A. Bonus for on-site employees: a non-taxable salary increase of €100 pro-rated for
the month of March if the employee worked on site and not at home (only if his/her
annual income does not exceed €40,000 gross).
•
B. Paid Parental leave: an extraordinary leave of 15 days (in the overall) is made
available to parents of children under 12 (without age limits for disabled children)
for the period of school closure (only if the other parent is not unemployed or
suspended under a social program). The leave is paid by INPS with an allowance
equal to 50% of the salary. As an alternative, parents may request a voucher of
€600 for baby-sitting services.
•
C. Unpaid Parental leave: an unpaid leave is made available to parents of children
aged from 12 to 16 for the period of school closure that can be used by one parent
(only if the other parent is not unemployed or suspended under a social program).
Government measures in key jurisdictions
51