JOB-SECURITY AGREEMENT/JOB-CREATION AGREEMENT

About

Country: 
Italy
efd.admin


ITALY
CONTRATTO DI SOLIDARIETA'
JOB-SECURITY AGREEMENT/JOB-CREATION AGREEMENT

Company agreement which, in order to avoid collective dismissals/redundancies or lay-offs because of a labour surplus/overstaffing , or in order to permit the hiring of new personnel, provides for a reduction in the working hours and pay of all the company's employees. The job-security agreement concluded to avoid staff cuts, known as a "defensive" agreement, attracts assistance from the Wages Guarantee Fund equal to 50 per cent. of the loss of pay, for a maximum period of 24 months. Law No. 236/1993 provided further incentives for the use of defensive job-security agreements as a means of dealing with labour surpluses, by increasing the assistance from the Wages Guarantee Fund to 75 per cent. of the loss of pay and granting additional benefits (reduction of social security contributions, and financial incentives). It also made the provisions of Law No. 863/1984 on the matter more comprehensive by specifying that the reduction in working hours may be calculated on a daily, weekly or monthly basis.

If, however, the purpose is to permit the hiring of new personnel, i.e. the "offensive" job-creation agreement, the employer is paid a contribution for each new employee hired and is also allowed to use recruitment by name (Law No. 863 of 1984).


Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.