The “Rilancio” or “Relaunch” Decree (Decree Law N. 34 adopted on 19 May 2020) allows for an extension for the duration of fixed term contracts or their renewal without having to specify the reason until 30 August 2020.

In so doing, the Government aims to foster employment opportunities in the next few months.

Assolavoro, the Italian Association for Private Employment Services, appreciated such regulatory change. However, in its 8-proposals’ plan for a successful recovery, Assolavoro highlighted the need for a more flexible labour market, whereby the legal conditions for use of fixed term contracts, either through private employment agencies or directly with the employer, and the additional cost in case of contract renewal, are eliminated. In so doing, the youth would be particularly supported, since workers under 35 years old constitute 53.1% of employees hired through a work agency. Also, data show that employees hired through an agency work have a greater chance to be renewed after a fixed term contract, compared to other types of contract (13,6%).

Alessandro Ramazza, President of Assolavoro, commented that: “When the recovery starts, companies will be cautious and will resort mostly to fixed-term contracts; it is up to the Legislator to create the conditions for preferring contracts with greater employees’ safeguards and with a salary, instead of other forms of work with few guarantees ranging from false self-employed workers, to work in spurious cooperatives only to pay workers 20% less, or illegal work”.

Such a change in legislation is not optimal, confirmed Francesco Baroni, Country Manager of GIGroup, a multinational for employment services. Baroni underlined the need for flexibility and pragmatism at the same time: “the change of rules should be extended at least for the entire 2021, considering that companies won’t easily recover in a short time”. An exemption for three months is too short to prove effectiveness.

The same Decree extends the ban on individual and collective dismissals for “objective just cause” – previously set for 60 days, as reported in the May Newsletter, for an entire duration of 5 months (until 17 August 2020).