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The New Temporary Employment Provision

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INTERNATIONAL LAW

La nuova somministrazione di lavoro

With the final approval of the “Labor Act” recently reviewed by the Chamber and awaiting the Senate’s examination, some significant changes will affect the temporary employment provision system. Parliamentary proceedings have, so far, been quite slow, given that the law addresses multiple employment issues, sparking differing views between the majority and the opposition.

These updates, embedded in Article 10 of the Bill, respond to critical situations identified in recent years. Adjustments are introduced through modifications of specific clauses within Legislative Decree no. 81/2015, directly impacting this type of contract.

The “Labor Act” introduces new rules regarding temporary employment provisions. Here is a brief analysis of these updates: The temporary nature of a provision that allows the use of workers employed indefinitely by employment agencies for open-ended assignments will be removed until June 30, 2025. These assignments, which can last more than 24 months (even if not consecutive) without establishing a permanent employment relationship with the host company, will now have a stable application. This regulatory shift will end the frequent revisions that had led to uncertainty and impermanence, thereby making this form of temporary employment fully accessible.

Key Changes in Employment Provisions

Paragraph 2 of Article 31 states that, unless otherwise specified by collective agreements (including company-specific ones, as noted in Article 51), the number of agency-supplied employees must not exceed 30% of permanent employees as of January 1 of the year in which the agency contracts are issued. The rule requires rounding up when the decimal reaches or exceeds 0.5. For companies starting operations mid-year, this percentage is calculated based on the number of permanent employees at the time the employment contract is signed with the agency.

Certain categories of workers are already excluded from this percentage requirement: Workers in mobility (ex Article 8, paragraph 2, of Law no. 223/1991), a category that has essentially ceased to exist as the mobility provision was repealed on January 1, 2017. Unemployed workers who have been receiving NASPI benefits (unemployment aid, excluding agricultural unemployment benefits) for at least six months or who are receiving salary supplements. Disadvantaged or highly disadvantaged workers defined under Article 2 of Community Regulation no. 651/2014. As specified in the Ministerial Decree of October 17, 2017, this category includes those without regular employment for at least six months, individuals aged 15–24, those without a secondary or professional school diploma (ISCED level 3), recent graduates without formal work experience, individuals over 50, single adults with dependents, those in sectors with a gender imbalance exceeding 25% of the average gender disparity, and ethnic minority members needing linguistic or professional development to improve job prospects. “Highly disadvantaged” workers are those without regular employment for at least twelve months.

Once approved, the bill will establish that percentage limits do not apply to the following cases: Situations outlined for fixed-term contracts in Article 23, paragraph 2, of Legislative Decree no. 81/2015, including the launch of new activities, innovative startups for the first four years post-formation (or a shorter period for pre-established ones), seasonal activities, specific performances, television or radio programs, replacing absent workers, and contracts for those over 50. Fixed-term agency contracts for employees hired permanently by the employment agency.

Disadvantaged Workers: Removal of Mandatory Justifications

The final update in Article 10 of the Bill concerns paragraph 2 of Article 34 of Legislative Decree no. 81/2015: effective immediately upon enactment, there will no longer be a requirement to provide justifications for extending temporary contracts beyond 12 months for disadvantaged or highly disadvantaged workers as defined by the Ministerial Decree of October 17, 2017, to which I previously referred.