2019 Budget Bill: Employment-related updates

​The 2019 Italian Budget Bill has introduced certain important changes that impact matters of employment and social security.

Youth employment

Companies can benefit from social security contribution exemptions (€8,000 maximum) if they hire, under a permanent employment contract, youth who complete, between 01 January 2018 and 30 June 2019:

(i) their single-cycle university degrees on time, with highest honours, and before the age of 30; or
(ii) a PhD programme before the age of 34.

The exemption is not available to employers who, in the 12 months prior to hiring these young employees, have made individual or collective redundancies for justified objective reasons or collective redundancies in the production unit where the new hire is to work.

The exemption can be revoked, and the related sums recovered, if within 24 months the employer dismisses (for justified objective reasons) the young employee or an employee in the same production unit with the same employment level.

Parental Leave

  • New fathers are now required to take five days of mandatory paternity leave (previously four). They may also continue to take advantage of an additional optional one day of leave.

  • Mothers-to-be can now postpone the start of their mandatory five month maternity leave until after delivery, provided that this choice poses no health risks for the mother or child.

  • Priority will now be given to smart working requests made by: (i) working mothers in the three years following the end of their mandatory maternity leave, and (ii) employees with disabled children.

Disability

New incentives apply for employers who hire disabled employees under permanent employment contracts (and, in certain cases, under fixed-term contracts). These incentives vary based on the type of disability of the employee hired.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.