The recent reform, known as “Jobs Act”, follows the previous one called “Riforma Fornero”. Both reforms are willing to give more flexibility to the labour market and more certainty about the ending phase of an open ended working contract with an employee, allowing entrepreneurs to know perfectly how much could cost to fire an employee and avoiding dangerous disputes. On the other hand, it provides fiscal benefits for the first three years on new contracts.
What changes with the “Jobs Act”?
In Italy the most powerful threat for an investor willing to hire people was the Art. 18th of the Workers’ Statute. Under this article in many situations the fired worker could have been reintroduced into force under judgment order, plus the employer would have suffered of a quite variable compensations due. This article isn’t any more enforceable on workers hired after the coming into force of the “Jobs Act”. The only cases of possible order of re-employment are under strict conditions and leftover cases. That could happen only if it occurs void dismissal, discriminatory dismissal or if the worker is able to demonstrate that the charged fact for his dismissal had never occurred. Mainly the “Jobs Act”, in case of invalid dismissal, gives to the employee only an economic protection that is determinate by law without any possibility of uncertainty about the amount. This compensation is calculate on the employee’s years of employment. In order to further more promoting new investments there are fiscal advantages for the enterprises that hire new personnel. The recent reform on one hand changes and reduces the workers’ rights but on the other hand boosts the local and foreign investments and this appears confirmed by the first positive statistics about new recruitments.
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