Government measures in key jurisdictions 3rd edition final - Flipbook - Page 73
Italy
:
1.The payment of social security contributions due in April and May 2020 was suspended 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 was also suspended until 30 April for companies
operating in business sectors severely affected by Covid-19 (such as sports, art, culture, tourism,
transport, education, entertainment and catering).
The new deadline for all suspended payments is 16 September 2020 (or in 4 instalments to be
paid starting from 16 September 2020).
•
: company-level or local collective
agreements entered into with the Trade Unions may define patterns for the re-modulation of
working time (a part of which is to be dedicated to training courses). A special fund called “New
Skills Fund” will bear the cost for training hours (this measure needs to be implemented by a
ministerial decree).
•
: a specific new fund with an endowment of
€100 million for 2020 has been established in order to support the rescue and restructuring of,
among others, companies with at least 250 employees that are in economic and financial
difficulty.
•
: the existing fixed-term employment contracts can
be renewed or extended until 30 August 2020, even without the specific reasons (“causale”) that
are generally required by law. Based on a reasonable interpretation of the provision, the same
exemption should apply also to existing fixed-term staff-leasing contracts.
•
: regions, other territorial authorities and Chambers of Commerce
may adopt aid measures, using their own resources, in order to contribute to the salary and
social security costs incurred by companies to avoid redundancies during the COVID-19
pandemic. This subsidy may be granted for a maximum of 12 months and up to 80% of the gross
monthly salary (including the social security contributions) and only if the staff benefiting from it
continues to work throughout the period for which the aid is granted.
It remains to be seen whether the regions and other entities will actually offer such measures, given
the likely unavailability of resources.
The Italian Government also introduced the following new and exceptional schemes
:
•
a non-taxable salary increase of €100 pro-rated was
granted for the month of March to employees who worked on site and not at home (and if
his/her annual income does not exceed €40,000 gross).
: an extraordinary leave of 30 days (in the overall),
is made available to parents of children
under 12 (without age limits for disabled children), 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 €1,200 for baby-sitting
services
Government measures in key jurisdictions
73