Decree no. 99/21: news on Cig and block of redundancies

By Francesca Tironi and Valentina Panettella

The Decree-Law no. 99/2021 was published in the Official Gazette no. 155 of June 30, 2021. Article 4 of the decree provides for “measures for the protection of employment”, the result of the consultation between the Government and the social partners with regard to social shock absorbers and ban on dismissals.

The decree introduces the extension until October 31, 2021 of the ban on redundancies in the fashion and extended textiles sector (ATECO codes 13, 14, 15), which has been particularly affected by the crisis. Employers in these industries, if as of July 1, 2021 they suspend or reduce their work activity, may apply for ordinary wage supplementation with Covid-19 for a maximum duration of 17 weeks (in the period between July 1 and October 31, 2021), without any additional contribution being due.

Companies that can no longer benefit from the CIGS (Extraordinary Wages Guarantee Fund), on the other hand, are allowed to make use of the “CIGS in derogation” for 13 weeks (until December 31, 2021) and, if they make use of it, the prohibition to dismiss remains in force.

The text of the Decree also envisages the setting up of a “Fund for the enhancement of skills and professional requalification” (FPCRP), with an initial allocation of 50 million euros for the year 2021 for training initiatives for workers on the redundancy fund for at least 30% and those on the NASPI (New Social Insurance for Employment). A decree by the Minister of Employment, following agreement at the State-Regions Conference, will define the criteria and methods for use of the resources.

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