Italy: New mechanism for employers to encourage retirement introduced

A new legal measure designed to encourage employees to retire has been introduced in Italy. This article sets out a description of how this new instrument works for employers and employees. Italy has implemented a pension reform in recent years, which has increased the state pension age in order to improve the system’s sustainability. Under the current rules, from 1 January 2019, the retirement age is 67. In addition,…

Italy: New rules on bank remuneration policies

Italy’s updated regulations on pay and bonuses in the banking sector aim to increase the regulation of economic incentives, in order to discourage bank employees from exposing banks and the wider economy to excessive risk. This article sets out the main elements of the new rules and possible difficulties with their implementation. It also provides views on the issue of pay in the financial services sector…

Italy: Protecting women from ‘dismissal for marriage’ is not discriminatory

The Italian Supreme Court has confirmed that the protection from dismissal offered solely for women employees in the period around marriage does not constitute discrimination. The Italian Supreme Court of Cassation recently confirmed its opinion that the prohibition on dismissing an employee during the period from the date of publication of marriage banns to the first anniversary of the wedding (known as ‘dismissal for marriage’)…

Italy: new government revives extraordinary wage subsidy for companies in crisis

A measure recently reintroduced by the new Italian Government gives companies in crisis who have wholly or partially ceased trading the opportunity to apply for financial support to guarantee employee wages. This article sets out the details and conditions of the revived provision. In a Decree Law effective from 29 September 2018, the new Italian Government has reintroduced the possibility for companies that cease their business…

Italy: buy-back clauses now part of the football player transfer system

From June 2018 the so-called ‘buy-back right’ (diritto di recompra) became part of the football player transfer market in Italy, after it was incorporated into the domestic organisational rules of the Italian Football Federation (NOIF). Buy-back rights are governed by Article 102 of the NOIF under which football clubs can include an option in a transfer agreement in favour of the selling club, giving it the right to buy…

Italy: ‘Dignity Decree’ introduces new restrictions on fixed-term contracts

Newly enacted legislation in Italy limits fixed-term contracts, increases indemnities for unfair dismissal and addresses relocation of international business outside Italy. By enacting the so-called ‘Dignity Decree’, which entered into force on 14 July 2018, the newly elected Italian Government took significant steps to reverse changes to the law on fixed-term contracts, partially liberalised by its predecessors. The Decree has also increased the indemnities payable…

Italy – Facebook comments can be valid grounds for dismissal

Facebook is one of the essential communication tools of the digital era, but it can also be dangerous for employees who use it carelessly, as a recent Italian Supreme Court decision has confirmed. Facebook has grown significantly over recent years. It now connects billions of people worldwide, all of whom are sharing information, posting comments and photos and liking each other’s posts. Facebook makes our…

Italy - employees can record conversations with colleagues to safeguard their rights

An employee can lawfully take recordings of colleagues, even without their consent, provided that he or she directly takes part in the conversation and the recording is aimed at safeguarding his or her rights. This article analyses a recent Italian Supreme Court ruling confirming this exception to Italian privacy law. An employee can lawfully record colleagues without their consent, provided the recording is aimed at…

Italy – benefits for employees of innovative start-ups

In Italy, innovative start-up companies enjoy many benefits, including benefits for their employees. The only companies that can take advantage of these incentives are those that are defined as innovative start-up companies according to the terms of a piece of legislation enacted in 2012, and that are therefore registered in a special section of the register of companies. Registration is only available to companies that…

Italy – how to dismiss an employee for poor performance

Sometimes there’s no alternative but to dismiss an employee for poor performance. This article sets out the circumstances in which dismissal for poor performance can be effected under Italian employment law and it highlights some similarities and differences with other European jurisdictions. In Italy it is possible to dismiss an employee for poor performance and an employee’s performance is an important criterion for assessing whether…