Lawyers International Network for Employees and Executives (LINEE)

Cristiano Cominotto

Telework, Smart Work, and the Right to Disconnect in Italy

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In our previous post, we explained the European Union’s pre- and post-pandemic protections of the changing workplace, including remoting arrangements. In this post, we explore the measures our home country—Italy—has taken.

Regulating Telework in Italy: Pre-COVID-19

According to Eurofound (2020), while only 10% worked from home at least several times a week before the pandemic (compared to 15.8% on average in the EU-27), the first wave of the pandemic brought this number to 39.9% (compared to 36.5% on average in the EU-27). This makes Italy among the Member States with the highest increases in the share of workers (18+) working from home during the pandemic.

Smart Working and the Right to Disconnect in Italy Read more.

Telework: A European Approach to Protecting Workers

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Teleworking is likely to become much more common following the increase in telework since the beginning of the COVID-19 pandemic. However, more extensive telework poses complicated threats to workers due to blurred work-life boundaries, extensive screen time, and a lack of social support found in office environments.

This emphasizes the importance of introducing “right to disconnect” initiatives to avoid large segments of workers being at risk of physical and emotional exhaustion.

Overview of the Uptick in Remote Work

According to estimates by the Eurofound (European Foundation for the Improvement of Living and Working Conditions), nearly 40% of workers in the EU began to work remotely due to the pandemic in 2020, with the percentage of remote workers growing nearly 34% compared to 2019. Read more.

Relocation of Executives: Benefits of a Competitive Package

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In a globalized world like ours, job-related relocations are a daily occurrence, but do we really know all the processes behind them? This article aims to help the reader to have a better overall view on the matter. Given that relocation occurs when an organization moves employees from one location to another, let’s analyse the basics of an effective relocation program. Here we will focus on the relocation of executives.

Hiring talented professionals for executive positions is one of the biggest challenges companies face today. “Failure to attract and retain top talent” was the number one issue in the Conference Board’s 2016 survey of global CEOs, even before economic growth.

The most crucial aspects to consider are policy development, communication issues, legal issues, and economic factors. Human resources professionals must offer competitive relocation packages and effective relocation practices and policies to attract talented managers. Relocation assistance can also help companies to retain current executives by giving them career development opportunities and simultaneously advance business development and operations by ensuring the right manager is in the right place at the right time. A well-designed relocation program complements an employer’s talent management program. If a relocation is not handled successfully, it threatens the employer’s ability to retain the manager, and it risks losing someone the employer has devoted time and money to develop and move. Read more.

The Prohibition of Employment Dismissals in Italy Following the August Decree

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The severe economic crisis caused by the coronavirus emergency has placed national governments at a crossroad, forcing them to determine whether it is more appropriate to protect the needs of entrepreneurs or workers. The first choice would allow employers to exercise provisions in Italy regarding an employee’s dismissal if a company is in economic difficulty. In the second scenario, the government could defend employees by adopting measures to stem what, in times of economic hardship, can be considered a natural increase in the unemployment rate.

Faced with this issue, the major industrialized countries have not moved in a single direction. Within Europe, it is possible to distinguish between countries such as Germany and the United Kingdom that have decided not to impose any prohibition on dismissal, and nations with a more “socialist” tradition such as France and Spain that have instead placed limitations on firing employees (without, however, providing any ban on redundancies in the strict sense).

Considered in this framework, Italy appears isolated. Since the beginning of the pandemic, the Italian government has chosen to proceed with freezing layoffs for economic reasons until 17 August 2020, with the enactment of the “Cura Italia Decree.” Read more.

Pandemics are Global, Work Cultures Are Not

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The COVID-19 coronavirus pandemic has proven beyond a doubt that economies and workforces are global. During the past few months, unemployment has increased by an alarming rate. Those employees who still have work have had to make sacrifices as they shift to telecommuting and try to remain productive during a tumultuous time. In case there was any lingering doubt, 21st-century companies depend on global markets in order to survive. This said, it is critical for businesses to understand how different cultures shape international and cross-cultural work.

This paper will outline how differences between Italian and American cultures have led to the creation of divergent work styles, how new methods such as smart working or telecommuting have been implemented within the U.S. and Italy, and what those differences mean for life after the coronavirus pandemic.

Work Culture in Italy and the U.S.

It comes as no surprise that European and American cultures are vastly different. The cultural contrast between Europe and the U.S. are apparent even when it comes to work-life balance. A 2012 report conducted by the European Union revealed that not only did Europeans tend to work fewer hours than Americans, but their most important personal values were health, followed by love, and finally work. This deeply contradicts U.S. cultural values. Read more.

The “Cura Italia” Decree and the Injection of Liquidity to Support Italy During the COVID-19 Pandemic

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The Italian government enacted a new and powerful economic plan – the “Cura Italia” – on March 17, 2020, sending Italian citizens a strong message of solidarity and support to Italian citizens. The Decree allocates a liquidity injection of some €25 billion in aid for workers, businesses, and families through a liquidity injection to support the economy.

How the Cura Italia Addresses Employment and the Workplace

The most significant portion of the aid will be allocated to reinforce social safety nets, including people who, under ordinary conditions, could not access those benefits. Among the measures are:

  • Extending the Ordinary Earnings Supplement Fund and implementing a simplified procedure for all companies that intend to adopt the ordinary layoff. This includes a mechanism for derogating from the maximum limit (currently 24 months);
  • Extending and upgrading the Redundancy Fund in Exception for employers with fewer than six employees (even just one employee). This includes sectors covered by the Ordinary Earnings Supplement Fund and not protected by Solidarity Funds, such as services and logistics;
  • An appropriation of €500 million for the Wage Integration Fund for micro-enterprises employing between one and five employees who cannot count on social safety nets.

Special Rules Regarding Ordinary Salary Integration and Ordinary Allowance

In 2020, employers who suspend or reduce their work due to events attributable to the COVID-19 emergency can apply for ordinary salary integration or access to the ordinary allowance for a maximum duration of nine weeks (ending August 2020). Applications can be submitted by the end of the fourth month following the one in which the period of suspension or reduction of work began. Read more.

Labor & Employment Considerations in Italy Post-Brexit

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On 31 January 2020, the UK officially left the European Union. In the next year, some of the UK’s labor and employment policies will change, posing new considerations for employers and employees alike. Until 31 December 2020, the UK will be in a “transition period” where current EU legislation will still apply until the UK has negotiated new agreements with the EU. This document outlines how employment rights for UK citizens living in Italy will be impacted both during and after the transition period.

Italian Immigration and Visa Requirements

British citizens wanting to work in Italy should be aware of the imminent changes to immigration and visa processes that will soon occur. During the Brexit transition period, it is suggested by the UK government that UK citizens living in Italy make sure their passports are valid and registered with their local Italian municipality.

Different registration documents exist depending on one’s status within Italy, and British citizens should obtain the documents that best define their status in Italy. These types of documents are below: Read more.

10 Key Things You Need to Know Before Coming to Work in Italy

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If you are considering relocating to Italy for a job opportunity, you need to understand the differences between Italian employment laws and employment protections in your home country. Below are ten essential points to assess before you enter into an employment contract, starting with a fundamental matter: make sure which law applies to your employment agreement.

Which Country’s Laws Govern the Employment Relationship?

Pursuant to the Convention of Rome of 1980 and the EC Regulation of 2008 Rome I, the law that the employer and employee select governs their employment contract. If there is no mention of a choice-of-law provision, the applicable law is that of the country in which the employee carries out his work duties or the country in which the office responsible for hiring the employee is located.

Despite the rules described above, if there is a closer connection with another country, the law of that country will apply. “Closer connection” could be defined by such parameters as the residence or domicile of the employee or both parties, the employer’s decision-making center, the language and form of the contract, the currency used for remuneration, and the place of payment. Read more.

Bonuses for Employees and Executives in Italy

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Nowadays, companies boost the productivity of their employees, especially the productivity of their managers, through various incentive plans, including the provision of performance bonuses or productivity bonuses.

These practices are becoming increasingly important, as the great changes observed in recent years in the labor market have led to a considerable transformation in the industrial relations and welfare policies of our country.

As commonly known, in Italy, the remuneration is irreducible, due, fixed, and based on the collective and individual contract. Read more.

Freedom of Dismissals Under Italian Statutory Law

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Due to their role as alter ego of the employer, in Italy, executives are subject to different and less protective statutory rules compared to regular employees. This difference is quite evident in the legislation about dismissals.

In fact, while Italian statutory law generally provides that in order to dismiss an employee the employers must prove that they have fair reason to dismiss them, – when it comes to executives the employer is not obliged to provide proof of just cause. This means that, as a rule, executives can be dismissed freely (otherwise referred to as an ad nutum dismissal).

Moreover, if the dismissal is based on a very serious reason which is able to break the “bond of trust” between the employer and the executive (in Italian this concept is referred to as ‘giusta causa’ or ‘just cause’) then the employer is exempt from giving the executive a period of notice and is also exempt with paying the executive a sum in lieu of notice. Read more.

A Clarification on the Termination of Agency Contracts for Sales Agents in Italy

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Currently, Italian Law provides for two very different ways of calculating severance payments for agents. The first method is governed by the Italian Civil Code and the second method is regulated by National Italian Economic Collective Agreements.

The first calculation method, which is governed by the Italian Civil Code, is outlined in Article 1751 – which has been modified by EU Directive 653/1968. This article stipulates that at the moment the employment/agency relation is terminated – the employer must pay the agent/sales representative an indemnity if the following circumstances exist:

  • the agent has provided new customers to the employer or has noticeably developed business with already existing customers in a way that the employer will continue to profit or take advantage of this business after the employment relationship is terminated
  • the payment should be fair, considering the loss of commissions the agent will suffer.

Paragraph 3 of Article 1751 also requires that a Judge will quantify the severance payment, considering the maximum amount possible established by the present article: Read more.

Need to Know: Executive Dismissals in Italy

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When does Italian law govern an employment relationship? When will the Italian courts have the power to hear your employment claim?

The first issue is to consider what the applicable law of your contract is. This is often set out in your employment contract.

Generally, the parties to a contract have the freedom to choose the applicable law, but in reality, it will be the employer that often chooses. That choice will often be the country’s laws that are most favourable and convenient to the employer. Read more.

International Executive & Employee Dismissals in Italy

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International executives and employees who work in, or have connections with, a number of different countries may have difficulties understanding which nations’ laws and courts will offer them the correct protection in case there is an employment dispute.

In some instances, international executives and employees may even have parallel legal protection in a number of different legal jurisdictions simultaneously.

If you travel frequently for your work or are regularly engaged in overseas business – your employment relationship may not be limited to your country of residence. Instead, it may also be tied to the countries where you conduct business as well as to the nation where your employer is headquartered. Read more.

Nov 25th is the International Day for the Elimination of Violence Against Women

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A report published by the National Italian Institute of Statistics (ISTAT) on September 15th, 2010, which covered the period between 2008 and 2009, revealed that an estimated 10.5 million women in Italy, aged 14 – 65 years, had experienced at some point in their life sexual harassment in the workplace. Read more in this update from AL – Assistenza Legale.