NEWSLETTER PAYROLL OCTOBER 2024

Published regulation on the credit license

The Decree No. 132 of September 18, 2024, which outlines the regulation for submitting applications to obtain the credit license for businesses and self-employed workers operating in temporary or mobile construction sites, was published in the Official Gazette No. 221 on September 20, 2024. The credit license will come into effect on October 1, 2024, to ensure continuous and ongoing safety for workers.

Temporary and mobile construction sites are defined under Annex X of Legislative Decree 81/2008. These include any location where the following construction or civil engineering activities take place: building, maintenance, repair, demolition, preservation, restoration, restructuring, equipping, transformation, renewal, or dismantling of fixed, permanent, or temporary works in masonry, reinforced concrete, metal, wood, or other materials. This also includes structural parts of electrical lines and systems, as well as road, rail, hydraulic, maritime, hydroelectric works, and reclamation, forestry, or excavation works that involve construction or civil engineering activities. Construction activities also cover excavations and the assembly and disassembly of prefabricated elements used in such works.

Application Process

To obtain the digital license, the application must be submitted through the National Labor Inspectorate portal, certifying the following requirements:

  • Registration with the Chamber of Commerce (self-certification);
  • Compliance by employers, managers, supervisors, self-employed workers, and employees with the training obligations specified in Legislative Decree 81/2008 (sworn declaration);
  • Possession of a valid DURC (self-certification);
  • Possession of the risk assessment document, where required by current regulations (sworn declaration);
  • Possession of a certificate of tax compliance under Article 17-bis, paragraphs 5 and 6, of Legislative Decree 241/1997, where required (self-certification);
  • Appointment of the person responsible for the prevention and protection service, where required by law (sworn declaration).

This applies to businesses and self-employed workers operating in temporary or mobile construction sites, excluding those engaged solely in the provision of supplies or intellectual services. Applications can be submitted by the company’s legal representative or the self-employed worker, either directly or through a duly authorized delegate, including individuals covered by Article 1, Law 12/1979.

Upon submission, the digital license is issued and made available through the portal. Pending the issuance of the license, business activities may continue unless otherwise notified by the National Labor Inspectorate.

In the case of false declarations regarding the fulfillment of one or more requirements, as confirmed through post-issuance inspections, the Administration will proceed under Article 27, paragraph 4, of Legislative Decree 81/2008*. After 12 months from the revocation, the company or self-employed worker may apply for a new license.

Credits

Upon issuance, the license is assigned an initial score of 30 credits, which can be increased to a maximum of 100 based on specific criteria, such as company history, absence of penalty deductions, investments or training in health and safety, and language training for foreign workers.

Additional credits can be granted upon the initial application if the applicant meets the relevant criteria. If the criteria are met at a later stage, credits can be updated upon submission of supporting documentation via the online platform.

In the event of a company merger, including by incorporation, the new legal entity inherits the highest credit score from the merging companies, with updates reflecting the new corporate structure. Similarly, in cases of corporate transformation under Articles 2500 et seq. of the Civil Code or business transfer to a company by an individual entrepreneur, the new entity retains the credit score of the predecessor, subject to updates based on the new structure.

Methods for recovering deducted credits have also been established.

INL Guidance

In Circular No. 4/2024, the *National Labor Inspectorate (INL)* provided initial guidance on relevant issues.

The credit license is required for businesses and self-employed workers physically operating in construction sites, including those from other EU or non-EU countries, with specific certification requirements for foreign entities. Companies with an *SOA qualification* of class III or higher are exempt from the credit license requirement.

Regarding the required criteria, the INL clarifies that not all requirements apply to all categories. For example, Chamber of Commerce registration applies to both businesses and self-employed workers, while other requirements like the risk assessment document and the appointment of a prevention and protection officer generally apply only to businesses. Training obligations for self-employed workers apply only when they use equipment requiring specific training.

Businesses and self-employed individuals must submit a self-certification using the template provided in the INL circular before October 31, 2024, to meet initial compliance. Applications for credit licenses via the portal must be submitted by November 1, 2024, to continue operating legally.

Damages for Unlawful Fixed-Term Contracts

The so-called “Save Infringements Decree” (D.L. 131/2024) has amended Article 28 of Legislative Decree 81/2015, removing the cap on compensation (previously set at 12 months) in cases of unlawful fixed-term contracts, where the court orders the conversion to an open-ended contract. Workers may now claim higher damages by proving greater harm suffered.

The revised provision now states that in such cases, the employer must compensate the worker with an all-inclusive indemnity ranging from 2.5 to 12 months’ salary, with the possibility of a higher award if greater damages are proven. The indemnity covers the entire period from the contract’s expiration to the court’s ruling to reinstate the worker. The provision capping indemnity at 6 months in the presence of collective agreements has been repealed.

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