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INSIGHTS BY THEMATIC AREA
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March 2021

Fixed-term contracts

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March 2021

Extension of renewals
FORWARD CONTRACTS

The news contained in the Support Decree

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April 2021

UNDER 36 contribution exemption

Incentives for hiring young people

UNDER 36 CONTRIBUTION EXEMPTION

Inps, with circular no. 56 of 12 April 2021, provided the first operational indications regarding the exemption from contributions for new permanent hires and for the transformations of fixed-term contracts, into permanent contracts, carried out in the two-year period 2021/2022.

However, authorization from the European Commission is still pending.

WHO IT APPLIES TO

The under 36 exemption is granted to all private employers including employers in the agricultural sector.

BENEFICIARIES

The incentive is due for new permanent hires and for the transformations of employment contracts from fixed-term to permanent, carried out in the two-year period 2021-2022 and for subjects who, at the date of the incentive event, have not completed the thirty -sixth year of age (age less than or equal to 35 years and 364 days). A further requirement to be respected is that they have not been employed indefinitely with the same or another employer during their working life.

The following are not included in the benefit in question :

• apprenticeship relationships;
• domestic work contracts;
• intermittent employment contracts (even if stipulated for an indefinite period);
• permanent employment relationships of personnel with managerial qualifications:
• occasional work services pursuant to art. 54-bis of the law decree n. 50 of 2017 converted into law no. 96/2017.


The art. 1, paragraph 13 of the 2021 budget law, also clearly excludes that the under 36 exemption can be applied to the continuation of fixed-term contracts of the apprenticeship period and to the recruitments referred to in art. 1 paragraphs 106 and 108 of the 2018 budget law.

AMOUNT

The incentive introduced by the 2021 Budget Law is equal to the exemption from the payment of 100% for 36 months  of the total social security contributions payable by employers, up to a maximum amount of 6,000 euros per year. The maximum threshold for exemption from employer contributions referring to the monthly pay period is equal to 500 euros (€ 6,000 / 12) and, for employment relationships established and terminated during the month, this threshold must be re-proportioned taking as a reference the measure of 16 , 12 euros (€ 500/31) for each day of use of the contribution exemption. In the case of part-time employment relationships, the maximum allowance must be proportionally reduced.

ESONERO UNDER 36

EXTENSION OF RENEWAL TERMS OF CONTRACTS
The art. 93 17 of the Sostegni decree law, provides for the possibility of renewing or extending the fixed-term subordinate employment contract until 31 December 2021 , for one time only:

- even in the absence of the reasons;

- the extension that took place during the validity of the law must not be counted within the limit of the four extensions available to the employer;

- the rule is also suspended which provides, in the event of renewal of a fixed-term contract, a contractual holiday (so-called "Stop & go") of at least 10 or 20 days from the previous fixed-term contract, depending on whether the contract, just completed, has been for a duration of up to six months, or more than six months.

Failure to apply these rules (obligation to provide reasons, number of extensions and "Stop & go") can only occur once with the same worker and this limit will be effective from the validity of the "Support" decree, without taking into account of any renewals or extensions on which the facility has already been used.

 

We remind you that the facilitating provision provides for two duration limits:

a) the facilitated term contract (renewal or extension) cannot exceed 12 months;

b) the maximum overall duration, among all the temporary employment relationships with the worker, cannot exceed 24 months.

PROROGA RINNOVI CONTRATTI A TERMINE
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