As we reported in our September 2020 Newsletter, the Italian “August Decree” allowed for “a one-time only extension of the fixed-term contracts for a maximum of 12 months and only once, without having to specify the reason and respecting the 24 months maximum duration of the different fixed-term contracts in total, until 31 December 2020”.  

Following this legislation, the Italian social partners for the sector, Assolavoro on the side of the employers and FELSA CISL, NIDIL CGIL, UILTEMP, representing the trade unions, signed an agreement that clarifies the “neutrality” of this extension vis-à-vis the maximum number of extensions (6 and in certain cases 8) allowed by the national collective agreement of 2019. Therefore, the agreement establishes that the extension introduced with the “August Decree” must not be added to the maximum number of extensions allowed by the national collective agreement.  

The deadline to extend the fixed-term contracts without specifying a reason, originally set at the 31 December 2020, will most probably be modified to 31 March 2021 by the Budget Law 2021 (to be approved from the Italian Parliament by 31 December 2020 – article 47 of the draft law). 

Director General of Assolavoro, Agostino Di Maio, considered that the maximum 12 months extension without having to specify the reason should cover the entire 2021 and that in general, there should be more flexibility with these forms of work due to the consequences of Covid-19 on the economy. He said: “this is the only way that guarantees to those looking for a job or to those who have an expiring contract to be able to continue working with the safeguards and guarantees of an employment contract. Otherwise, the risk of slipping towards less protective forms of work, up to informal work, is upon us”.