Law Decree “on urgent provisions for employees’ and businesses’ dignity”:
Law Decree no. 87 of 12 July 2018, converted into Law no. 96 of 9 August 2018 (also known as “Dignity Decree”), came into force on 14 July 2018 and amended certain provisions of the Italian employment legislation. The Law sets forth new rules on fixed-term employment contracts which are now subject to stricter requirements. The infringement of any of the rules provided for fixed-term contracts triggers the conversion of the fixed-term employment contract into an open-ended employment contract. Moreover, the employment relationship between temporary agency workers (lavoratori somministrati a termine) and staff agencies (agenzie di somministrazione) is also subject to the same rules applied to fixed-term contracts. Finally, the Law provides for an increase both in the minimum and in the maximum indemnity to which employees hired under the so-called “tutele crescenti” regime are entitled in the event of an unlawful dismissal.
Partial inconsistency of Legislative Decree no. 23 of 4 March 2015 with the Italian Constitution:
With decision no. 194 of 8 November 2018, the Italian Constitutional Court declared the inconsistency of art. 3, paragraph 1, Legislative Decree no. 23 of 4 March 2015 (also known as “Jobs Act”) with articles 3, 76 and 117 of the Italian Constitution, since it provides that the indemnity to which employees who have been unlawfully dismissed are entitled is calculated solely on the basis of their length of service, without taking into consideration other criteria, listed by the Court, such as the number of employees working at the company, the size of the company, the general conduct of the parties and their conditions.
Corporate Governance: the provisions on remuneration and incentives policies applied by banks and banking groups:
The Bank of Italy has amended its Circular no. 285 of 17 December 2013 regarding the provisions on remuneration and incentives policies applied by banks and banking groups. The amendments to the Circular, submitted to public consultation on 14 March 2018, are mainly aimed at adapting the Italian regulatory framework to the European Banking Authority (“EBA”) guidelines on the matter, issued on 27 June 2016 to implement Directive (EU) 2013/36 (“CRD IV”). The remuneration and incentives policies compliant with the new provisions must be submitted, at the latest, to the approval of the shareholders’ meeting convened to approve the 2018 financial statement. Moreover, banks, within the limits set forth by collective agreements, are required to: (i) apply the new provisions to individual employment contracts signed starting from 1 April 2019; and (ii) promptly adapt the individual employment contracts in place to the new provisions and, in any case, within 1 April 2019, with reference to the members of the strategic supervision, management and control bodies and within 30 June 2019 for the other employees.