Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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National Collective Bargaining Agreement for Trade Sector (ConfCommercio): Wage Increases and One-off Bonuses

New Legislation Enacted

Authors: Carlo Majer, Partner, and Caterina Colombano, Associate – Littler Italy

On December 12, 2022, the renewal of the National Collective Bargaining Agreement (NCBA) for the trade sector (ConfCommercio) was signed by the trade unions of employers and employees. The renewal provides that employees in force as of that date who worked in the 2020-2022 period will be granted: (i) a one-off amount of EUR 350 gross at contractual level IV classification, spread over the other classification levels, to be paid in two installments; and (ii) an amount of EUR 30 gross per month at level IV classification, spread over the other classification levels as of April 1, 2023, as an advance on future contractual increases. The amounts paid at the company level by way of future contractual increases may be absorbed in accordance with the provisions of the NCBA.

The one-off allowance will be paid pro rata in relation to the months of seniority accrued during the 2020-2022. Periods of military service, unpaid leave of absence, and all periods in which no payment is due will not be considered for seniority purposes. Both payments will also be recognized, on a prorated basis, to personnel hired with the part-time contract.

Parental Leaves: Latest News

New Legislation Enacted

Authors: Carlo Majer, Partner, and Caterina Colombano, Associate – Littler Italy

The Budge Law 2023 (Law No. 197/2022), which was published in the Official Journal on December 29, 2022, amended the parental leave law. Namely, for employees who terminate their maternity leave or, alternatively, paternity leave after December 31, 2022, the amount of the allowance for parental leave is increased from 30% to 80% of the salary for a maximum duration of one month until the child’s sixth birthday. The increase is granted alternatively to the mother or to the father.

Hiring Incentives for 2023

New Legislation Enacted

Authors: Carlo Majer, Partner, and Caterina Colombano, Associate – Littler Italy

The Budge Law 2023 (Law No. 197/2022), introduced a number of incentives for hiring employees in 2023, which are subject to the authorization of the European Commission. When hiring recipients of the so-called "citizenship income" (reddito di cittadinanza, i.e., an income support measure) with an open-ended employment contract (and also when converting fixed-term contracts into open-ended contracts), a 100% exemption from the total social security contributions will be recognized for a maximum period of 12 months, with the exclusion of the contributions due to INAIL (National Insurance Agency against accidents at work), up to a maximum limit of EUR 8,000.00 on an annual basis, prorated on a monthly basis. (This exemption is an alternative to the one provided for in Article 8 of Decree-Law No. 4 of January 28, 2019.)

For new open-ended hires (or stabilization of fixed-term contracts) of persons under 36 years of age, a total exemption from social security contributions of up to EUR 8,000 on an annual basis, spread over a monthly basis, excluding premiums and contributions due to INAIL, will be granted for a maximum period of 36 months (or 48 months when hirings in a head office or production unit located in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia). When hiring disadvantaged female employees, there will be an exemption of 100% of the social security contributions for the employer and up to a maximum amount of EUR 8,000 on an annual basis, adjusted and applied on a monthly basis. The duration varies depending on the duration of the employment contract, being equal to 12 months in the case of hiring with a fixed-term contract and 18 months in the case of hiring or conversion to an open-ended contract.

Smart Working Regime: Updates

New Legislation Enacted

Authors: Carlo Majer, Partner, and Silvia Locantore, Associate – Littler Italy

The Budget Law 2023 (Law No. 197/2022) extended the right for vulnerable employees (i.e., employees who suffer from chronic illnesses that impair their immune system) and employees with a certification of “severe disability” to perform their work activities through smart working (i.e., a form of remote work) until March 31, 2023. Such a possibility has not been extended to parents with children below the age of 14, who previously were entitled to it.

Moreover, from January 1, 2023, an individual agreement between the employer and the employee will be required to perform work under a smart working regime. The employer should send a communication within five days from the beginning of the work performance under a smart working regime.

Early Retirement Rules: Updates

New Legislation Enacted

Authors: Carlo Majer, Partner, and Silvia Locantore, Associate – Littler Italy

According to the Budget Law 2023 (Law No. 197/2022), in 2023 early retirement will be possible under one of the following regimes. Under “Quota 103”, employees must have the following requirements: (i) age of 62 years; and (ii) 41 years of social security contributions accrued. In this case, it will not be possible for the employee to perform any work until the employee meets the requirements for old-age retirement as provided for by the law, unless the employee performs work as an occasional independent contractor (i.e., within the income limit of EUR 5,000 gross per year).

Under the “APE Sociale,” employees who meet specific criteria (such as being 63 years old and unemployed, a caregiver, or having a reduced work capacity) can retire early if doing so before December 31, 2023. Under the “Opzione Donna,” the related pension regime has been modified and extended. Female employees who accrued 35 years of social security contributions by December 31, 2022, and are at least 60 years old can request early retirement if meeting specific requirements (such as being a caregiver, disabled with invalidity greater or equal to 74%, dismissed employee, or employed by a company which, due to a difficult situation, engaged in negotiations with the authorities to mitigate the impact of their crisis).