Italy: Italy withdraws liberal labour market reforms

The new government in Italy has brought its first major project through Parliament. The new laws make dismissals and temporary work more difficult.

Italy: Italy withdraws liberal labour market reforms

The new Italian Government has partially reversed labour market reforms of previous government. According to House of Representatives, Senate also voted in favour of a legislative package that restricts term of employment contracts, withdraws relief from dismissal protection and provides for levies on companies that move jobs abroad. It is first major project of coalition government of leftist and right-wing populists.

In future, temporary employment contracts should not exceed two years. So far it has been three years. They may also only be renewed four times instead of five. Companies that have received government grants will have to repay m if y shift ir production abroad within five years. If transfer is to a country outside European Union, two to four times grant must be paid back.

Securing jobs in Italy was one of most important pledges of Labor minister Luigi Di Maio of five-Star Movement, which, toger with right Lega, represents government. The package that has been adopted also includes a ban on advertising of games of chance.

Employers ' associations criticized restrictions on time contracts. According to polls, you will be informed by vote. "This is first law for decades that has not been dictated by lobbyists and interest groups," said Di Maio. "In end, simple people won a point."

Italy has repeatedly tried to liberalise labour market in recent years in order to stimulate economic growth. Many older workers have permanent employment contracts with a strong dismissal protection, while most young workers are only able to obtain time contracts or can be easily terminated. In twelve months to June, some 394,000 temporary jobs were created. The number of permanent jobs decreased by 83,000.

Date Of Update: 08 August 2018, 12:00

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