Italy Employment Law Update: Changes to the rules on relocations

Art. 37 of Legislative Decree no. 144 of 23 September 2022, in making changes to the procedures referred to in Law no. 234/2021 (Budget Law for 2022), intervenes in the matter of relocation or sale of activities of companies not related to a crisis situation for employers with at least 250 employees, including apprentices and managers, who intend to proceed with the closure of an office, an establishment, a branch or an autonomous office or department situated in the national territory, with the definitive cessation of its activity and the dismissal of a number of workers of not less than 50.

The procedure involves the involvement of trade unions, regions, Ministries of Labor and Economic Development and Anpal, and involves the presentation of a plan to limit the employment and economic repercussions deriving from the closure.

The rule in comment provides that, in case of non-signing of the plan by the trade unions, the employer is required to pay the contribution c.d. dismissal ticket raised by 500%.

In case of signing the plan, the employer is required to communicate monthly to the aforementioned subjects the state of implementation, giving evidence of compliance with the times and methods of implementation, as well as the results of the actions undertaken.

In the event that, at the end of the procedure, the employer definitively ceases production activity or a significant part thereof, also as a result of relocations, with a simultaneous reduction of staff exceeding 40% of that employed on average in the last year, at national or local level or in the department subject to relocation or closure, the same is required to repay the subsidies, the contributions, subsidies and financial aids or economic advantages borne by the public finances from which the production plants subject to the cessation or downsizing of activities have benefited.

It is also envisaged that until the complete repayment of the aforementioned sums, no further grants, contributions, subsidies and aids can be granted to the debtor.

By Quorum, Italy, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact italy@transatlanticlaw.com

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