Additional measures on wage integration treatment, a new decree-law is on the way

Prepared by Giulia Spalazzi, Valentina Panettella and Francesca Tironi 

During the meeting of the Council of Ministers held on 15 June 2020, upon proposal of the Minister of Economy and Finance and the Minister of Labour and Welfare, a decree-law introducing additional urgent measures regarding wage integration treatment has been approved (Decree-Law No. 52 of 16 June 2020, which will come into force on 17 June 2020).

In particular, in order to avoid any interruption in the use of social shock absorbers, it is envisaged that employers who have benefited from ordinary, extraordinary or exceptional wage integration treatment, for the entire period previously granted and up to a maximum duration of fourteen weeks, will now be able to benefit from the additional four weeks – provided for by the “Rilancio Decree” from 1 September onwards- even before such date, without prejudice to the limit of the maximum duration of eighteen weeks.

In this way, all companies which, having recourse to social shock absorbers since March, are going to finish the five weeks following the initial nine weeks, can continue to benefit from such wage integration and do not have to wait until September to request the additional final four weeks.

The decree, furthermore, with reference to employers who have erroneously submitted the application for treatments other than those to which they would have been entitled to, or in any case with errors or omissions that prevented their acceptance, acknowledges the possibility for them to correctly re-submit the application within thirty days from the communication of the error in the previous application by the relevant administration, under penalty of forfeiture, even pending the revocation of any concession order issued by the relevant administration. In addition, there is an extension from July 15 to August 15, 2020 of the deadlines for the submission of applications for regularization pursuant to Article 103 of Law Decree No. 34 of May 19, 2020, and from June 30 to July 31, 2020 those for the submission of applications for the so called “Reddito di emergenza”.

Finally, during the meeting, the major representatives of the social partners most present on the national territory, proposed the extension of the ban on dismissals procedure until the end of the year, this request, however, has not been accepted by the Government yet.

Let’s Talk

For a deeper discussion, please contact:

Francesca Tironi

PwC TLS Avvocati e Commercialisti

Associate Partner

Giulia Spalazzi

PwC TLS Avvocati e Commercialisti

Senior Manager