In date July 4, 2023, the Law no. 85/2023, converting the Decree Law no. 48/2023 (hereinafter referred to as the “Labor Decree”), came into force. Below are the most relevant updates:
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Renewal of Fixed-Term Contracts
As known:
- “Renewal” refers to the rehiring of the same employee on a fixed-term basis by the same employer, after the previous fixed-term contract between the parties has naturally expired.
- “Extension,” on the other hand, refers to postponing the original end date of the fixed-term contract to a future date.
Having clarified this, the conversion law has introduced the possibility of freely renewing fixed-term contracts within the first 12 months, and only thereafter, under the same conditions set for contract extensions.
Grounds for Renewal
The conversion law has upheld the provisions regarding the grounds for renewal already introduced by the Labor Decree. Therefore, once the 12-month threshold has been exceeded, fixed-term contracts can be extended or renewed solely under the following circumstances:
- In cases provided for by collective bargaining agreements.
- In the absence of provisions in collective bargaining agreements, and in any case, by April 30, 2024, for technical, organizational, or production-related needs identified by the parties.
- For replacement reasons of other workers.
Calculation of the 12 Months
According to the conversion law, for the purpose of calculating the 12 months, only contracts entered into from May 5, 2023, are taken into account.
This means that if, for example:
- Before May 5, 2023, a fixed-term contract lasting 2 months was concluded between the parties.
- After May 5, 2023, the parties agreed on a renewal of the fixed-term contract for a duration of 3 months.
The first fixed-term contract of 2 months, being concluded before May 5, 2023, will not be considered in the calculation of the 12 months.
Administration
The conversion law introduced a new provision concerning indefinite-term staff leasing contracts, specifically with regards to the quantitative limit of 20% of the workforce employed under such contractual arrangements.
In particular, the following categories of workers should not be included in the aforementioned quantitative limit:
- Leased workers hired under apprenticeship contracts.
- Individuals in mobility, unemployed, or receiving wage integration for at least six months, as well as disadvantaged workers according to EU Regulation No. 651/2014.
Before the entry into force of the conversion law, these categories of workers – now excluded – were fully counted towards the 20% quantitative limit of the number of permanent workers employed by the user company.
Information Obligations
Furthermore, the conversion law confirms that the information required by the Transparency Decree, relating to:
- Probationary period.
- Training.
- Duration of annual leave and other paid leaves.
- Notice period.
- Remuneration.
- Working hours.
- Entities receiving social security and insurance contributions.
Such information can be communicated to the employee, and the related obligation considered fulfilled, by indicating the legal reference or the collective agreement, also at the company level, that governs the matters that the employer must provide or make available to the staff.
Smart Working
Finally, with the conversion law, the right to smart working has been extended as follows:
Until September 30, 2023, for vulnerable workers, both in the private and public sectors, as indicated in the declaration referred to in the Ministerial Decree of February 4, 2022.
Until December 31, 2023, for vulnerable individuals and parents of children under 14 years old.
