Expansion agreement and early retirements: extension to 2025

Prepared by Gianluigi Baroni and Carlo Marinelli

The Labor Decree under discussion these days provides for an extension of the Expansion Agreement (Contratto di Espansione “CdE”) until 2025.

It is a useful tool for managing production reorganization or restructuring processes that involve a change in production processes and, consequently, of the technical-professional skills in the workforce.

CdE was introduced on an experimental basis a few years ago but was originally limited to large companies (more than a thousand employees) only.

It was gradually extended to smaller companies as well and it is now available to employers with staff of no less than 50 employees, also calculated overall in case of stable aggregation of companies with a single production or service purpose.

CdE is negotiated with unions and must be formalized before the Ministry of Labour.

It provides, on the one hand, the possibility of favoring the termination of employees who are at most five years away from retirement and, on the other, to exploit up to a maximum of 18 months of extraordinary of governmental redundancy fund in favor of the remaining workers.

The hiring of new professional skills should also be provided in CdE, also through apprenticeship agreements and benefiting of all the incentives provided by the law.

Let’s Talk

For a deeper discussion, please contact:

Gianluigi Baroni

PwC TLS Avvocati e Commercialisti

Partner

Carlo Marinelli

PwC TLS Avvocati e Commercialisti

Director