New regulations for public and private employment

After two years of parliamentary discussions, a new law regarding public and private employment was approved by the Italian government on 4 November 2010. The law contains 50 articles concerning different aspects of employment such as the settling of labour disputes, apprenticeships for young people, undeclared work and employment in the public sector. Social partners were in general agreement with modifications made by parliament to some clauses in the law.

Principal measures contained in the law

The Law 183/2010 (in Italian, 4.6Mb PDF) was approved after two years of parliamentary discussions and a request by the President of the Republic, Giorgio Napolitano, for the law to be re-examined before approval. The President had expressed doubts over a number of aspects contained in the first version of the law including, in particular, the clause on arbitration as a means of resolving individual labour disputes. This clause was partially modified by parliament after it was re-examined.

Settlement of individual labour disputes

In accordance with the new law, it will be possible to decide to settle individual labour disputes through an arbitrator rather than a judge. The decision on whether to opt for arbitration will have to be foreseen in the individual contract of employment and be implemented after the trial period or alternatively 30 days following the stipulation of the contract.

In contrast to the initial version of the clause, in cases where the dispute is over dismissal, arbitration will not be possible and such cases must be referred to a court.

The law also alters the rules on conciliation for the settling of labour disputes. Conciliation used to be mandatory before taking the case to court, but the new law makes it optional.

Public sector

The Brunetta reform concerning reorganisation and modernisation of public administration (IT0807039I, IT0810019I) introduces the measures outlined below.

• Permission to take paid leave to assist disabled family members will be restricted to close family members only.

• Unpaid leave for a maximum of 12 months will be also granted to people wanting to set up a professional or entrepreneurial activity. During this leave, therefore, the norms that ban public administration employees from doing more than one job will not be applied.

• The use of collective and voluntary mobility in public administration will be increased.

• A committee will be set up to guarantee equal opportunities, consisting of representatives of trade unions and public administration. One of its tasks would also be to combat mobbing.

• Within the first six months of the law coming into force, public servants will have an opportunity to re-examine the position of about 156,000 part-time workers, of whom 85% are women (Istat data for 2006 (in Italian, 774Kb PDF)). They will be able to apply the more restrictive regulations introduced by the Brunetta decree and potentially transform these positions into full-time contracts (Decree law 112/2008 (in Italian), Article 73).

Apprenticeship

According to the new law, it will be possible to substitute the final compulsory school year (at the age of 15 to 16 years) with an apprenticeship in an enterprise.

Undeclared work

Heavier sanctions are foreseen for employers that do not immediately notify job centres of their intention to employ someone (from €1,500 to €12,000 for every irregular worker, plus €150 for every day of undeclared work).

The sanctions connected with the non-payment of social security contributions for each irregular worker will increase by 50%.

Non-standard work

The ability to contest individual dismissals within 60 days will be extended to all types of contract, including non-standard ones.

The sanctions foreseen for an employer who fails to pay social security contributions for an employee are imprisonment for up to three years plus a fine of up to €1,032 (Law 463/1983 (in Italian)). The law will be also applied if the failure to pay regards non-standard workers.

Working hours

There will be a more differentiated scale of sanctions for employers who violate regulations on working hours. The basic sanction will decrease, but there will be an increase in penalties when the violation involves more workers and continues for protracted periods.

National labour exchange

The National Continuous Labour Exchange (Borsa Continua Nazionale del Lavoro) will be reinforced through the online addition of student CVs by universities for 12 months following graduation. Through the labour exchange, it will be possible to gain access to all the information regarding job openings in public administration.

Tasks for government

The government has been tasked with carrying out a reform of the system of social shock absorbers, to adopt a norm that introduces early retirement for arduous work and to reorganise the norms concerning leave and time off work for workers in the public and private sector.

Reactions of the social partners

According to Fulvio Fammoni, General Secretary of the General Confederation of Italian Workers (CGIL), there are a number of problematic points in the law. In particular, the introduction of apprenticeships from the age of 15 years, below the age limit of compulsory education, and the possibility to opt for arbitration before a dispute arises will not guarantee a free choice for workers according to CGIL.

Giorgio Santini, General Secretary of the Italian Confederation of Workers’ Unions (CISL) has stated that the measures are acceptable because most of the observations offered by the President and by the common avis (in Italian, 568Kb PDF) signed by more than 30 social partners have been acknowledged.

The Union of Italian Workers (UIL) also appreciates the improvements introduced by parliament but has expressed the hope that in future matters regarding the relationship between workers and employers should preferably be kept under the control of the social partners.

Sofia Sanz, Cesos