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by Arianna De Carlo | Aug 25, 2020 | infoflash

August Decree: news in the employment field


On August 7, the Council of Ministers approved a new decree-law n. 104/2020, renamed Decree August. The decree, published in the Official Gazette on August 14, became effective on August 15, 2020.


Below are the articles of main interest in the employment field.



Art. 1 – Extension of 9+9 weeks of salary integration with new rules

They are granted for suspensions or time reductions due to the pandemic, social security benefits to be enjoyed through CIGO, FIS or “Cassa in Deroga”, for a maximum duration of nine weeks, increasable by another nine under certain conditions, to be placed in the period from July 13 to December 31, 2020. The first 9 weeks absorb the salary integration periods previously requested and authorized, which are also partially placed in periods after July 12, 2020.

The shock absorber is no longer free, the second 9-week tranche will in fact have a cost for the employer who will pay an additional contribution inversely proportional to the decrease in turnover suffered in the first half of 2020 compared to the first half of 2019. For companies that have suffered a lower reduction in turnover is established an additional contribution of 9%, to be calculated on the salary that would be due to the worker for the hours not worked during the suspension or reduction of work. The additional contribution is raised to 18% for employers who in the comparison of the two semesters have not suffered any reduction in turnover.


 Art. 3 – Subsidies for the companies that will interrupt the measures of the redundancy fund

The companies that will not apply for redundancy fund treatment and that have already benefited from it, in the months of May and June 2020, is recognized the exemption from the payment of social security contributions at their expense, for a maximum period of four months, available by December 31, 2020, within the limits of double the hours of wage supplementation already enjoyed.


Art. 6 – Benefits for companies that hire permanent workers

Until 31 December 2020, social security contributions are excluded from the payment of social security contributions, for a maximum of six months after hiring and within the limit of € 8,060 per year, the hiring of permanent employees, in the presence of an increase in net employment, provided that the hired workers have not had a contract of indefinite duration in the six months before hiring at the same company.


 Art .8 – Extension of fixed-term contracts

It is possible to renew or extend, for a maximum period of 12 months (without prejudice to the overall limit of 24 months) and for one time, employment contracts for a fixed period of time even in the absence of a cause.


 Art. 14 – Blocking of dismissals

The dismissal block will remain for companies that use the redundancy fund set up for the COVID-19 emergency or other relief contributions introduced during the emergency period. Even for employers who have not fully benefited from the redundancy fund or exemption from social security contributions, the start of individual dismissal procedures and those initiated after February 23, 2020 will remain blocked. Furthermore, the decree confirms the suspension of collective dismissal procedures. These provisions do not apply, however, in the case of dismissals motivated by the permanent cessation of activity of the company.

Since the block of dismissals is variable concerning the company choices related to the use of CIG and relief, this block becomes basically “mobile” as it will not apply to all companies within the same time frame: those who will no longer be able to access the redundancy fund, having benefited from all 18 weeks recognized, will be allowed to dismiss. In this way, the expiry of the blockade, depending on the case, is “smeared” between November and December.


Art. 97 – New deadlines for the payment of taxes and contributions

The deadlines for tax and contribution payments suspended in the emergency phase are rescheduled, so as to significantly reduce in 2020 the cost that would otherwise be borne by taxpayers in difficulty.

Payments suspended in March, April and May are further deferred in installments. The measure also explains how taxes and suspended contributions are to be paid:

  • 50% of the total can be paid, without the application of penalties or interest, in a single installment by September 16, 2020, or by installments (up to 4 equal monthly installments) with the payment of the first installment by September 16.
  • The remaining 50% can be paid, without penalties and interest, in a maximum of 24 equal monthly installments.

The final date of the suspension of payment terms from payment folders and executive notices on tax revenues is postponed from 31 August to 15 October 2020.


Art. 112 – Double welfare limit

Until 31 December 2020 the amount of the values of the goods sold and services provided by the company to employees who do not contribute to the formation of income by art. 51 of the Tuir is raised to Euro 516.46. This limit before the entry into force of the August Decree was Euro 258.23.

The Firm remains available for further clarification, inviting anyone who considers that may be covered by this provision to contact us in order to verify the conditions of application and organize the work.



LDP Payroll stays at your disposal for any further information.

De Carlo Arianna – adecarlo@ldp-payroll.com

Head of Payroll Department

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