Valid reasons for FTC use: objective and material reasons

Remarks

Art. 1.1 of the Decree 368/2001 lists the grounds based on which the fixed term contract (when concluded with justification) can be concluded: reasons of technical nature, reasons of production, organization and in the in case of substitution of temporary absent employee.

Art. 10 Leg. Decree 368/2001 provides for specific exceptions:
(in particular to the tourism sector, agricultural sector, contracts concluded with executives (dirigenti): see. Art. 10 on the scope of application).

Maximum number of successive FTCs: no limitation

Remarks

Renewal is allowed once only for fixed-term contracts with an initial duration of less than 3 years: art. 4 Leg. Decree 368/2001.
Renewal is not possible for longer FTC.

Maximum cumulative duration of successive FTCs: 36month(s)

Remarks

Art. 4 Leg. Decree 368/2001
However, further renewal is possible if authorized by the Direzione Provinciale del Lavoro (art 4 bis of Leg. Decree 368/2001 as inserted by sec. 40, Act 247/2007).

Note: This limitation only applies to successive FTC. In the case of a single FTC, no maximum duration is fixed by the law.

% of workforce under FTC: 12.1

Remarks

Source: Eurostat, as of first trimester 2010.
The figure refers to the percentage of employees of a total number of employee with a contract of limited duration (= temporary job).
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

Probationary period is governed by collective agreement. However there is a statutory limit of 6 months: art. 10 Act 604/1966.

Obligation to provide reasons to the employee: Yes

Remarks

Art. 2 Act 604/1966: if requested by the worker within 15 days from the notification.

Valid grounds (justified dismissal): any fair reasons

Remarks

A dismissal is unfair unless it is for a just cause (no notice required) or a justified motive (notice required)
See art. 1 and 3 Act 604/1966 and art. 2119 CC.

Under art. 2119 C.C., 'just cause', in broad terms, requires very grave conduct which, when evaluated both subjectively and objectively, constitutes a serious and irremediable reason that prevents the parties to continue the employment relationship even on an interim basis. Whether such a breach has occurred would normally have to be determined ultimately by a court, taking all relevant factors into account.
Justified reason is defined as a very significant breach of contract made on the side of the employee (subjective justified reason) as well as ; or reasons inherent in the production process, the organization of work or the smooth running of the undertaking (objective justified reason) (sec. 3, Act 604).

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, race, sex, sexual orientation, religion, political opinion, age, trade union membership and activities, disability, parental leave, participation in a lawful strike, adoption leave

Remarks

Art. 15 Act 300/1970, as amended by art 13 A 903/1977 .
Art. 3 Act 604/1966
Art. 1 Act 7/1963
Art. 54 Act 151/2001
Art. 18 (1) Act 53/2000.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities

Remarks

- Worker's representatives: there is a limited protection in art. 28 Act 300/1970 (workers' statute) which provides for specific simplified procedure for reinstatement following unfair dismissal.
- Pregnant women, women on maternity leave, women with family responsibilities: see L 1204/1971 on the protection of working mothers. According to art. 2, dismissal is prohibited form the beginning of the pregnancy and up to a maximum of one year after the birth of the child.
This prohibition does not however prevent an employer for dismissing a female employee in the event of serious misconduct (just cause) or in case of cessation of the activities of the employer.
See also Leg. Decree No. 151 of 26 march 2001, art. 54:
- Workers on paternity leave equally benefit form the protection against dismissal. (note however that under Italian law, a worker is entitled to paternity leave in limited situations: death of the mother, serious disability or abandonment by the mother or exclusive custody of the child to the father).
- The prohibition of dismissal has also been extended to cover adoption leave (up until one year after the child has entered the family).

Notification to the worker to be dismissed: written

Remarks

Art. 2 Act 604/1966

Notice period:

Remarks

The length of the notice period is governed by collective agreements according to the employee's length of service and category.
See also art. 2118 CC.

Pay in lieu of notice: Yes

Remarks

Art. 2118 Civil Code

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): Over a period of 120 days, in undertakings with 15 or more employees, concerning at least 5 employees in a single unit of production or at least 5 employees in several units belonging to a single employer within one province.

Remarks

Art. 24, Act 223/1991

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Art. 4 read together with art. 24 Act 223/1991.

Notification to the public administration: Yes

Remarks

Art. 4 read together with art. 24 Act 223/1991.

Notification to workers' representatives: Yes

Remarks

Art. 4 read together with art. 24 Act 223/1991.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks

Art. 5 (1) read together with art. 24 Act 223/1991 : Mandatory list of 3 criteria to be considered unless provided otherwise in collective agreement: 1) family responsibilities, 2) job tenure, 3) technical, production-related and organizational requirements. But no specified priority between those criteria.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Art. 4(4): refers to alternatives to redundancy and measures to mitigate the social effects of redundancy as part of the elements to be communicated to the trade union representatives for the purpose of consultation.
Art. 4 (5) as modified by art. 1 Act (D. Leg.) 151/1997, read together with art. 24 Act 223/1991 : mandatory examination of the possibility to adopt social measures (i.e retraining).
However, no formal adoption of a social plan is required.

Priority rules for re-employment: Yes

Remarks

Art. 8 Act 223/1991 referring to art 15 Paragraph 6 Act 264/1949.
Preferential rehiring during six months. Before 2002 this period was one year.

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 2 years: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Notes / Remarks

Notes

No severance pay as such. However, there is an end-of-employment contract indemnity (TFR: Trattamento di fine rapporto: sec. 2120 CC) constituted by a certain amount of salary set aside each month to be paid to each employee upon termination of the employment contract.
It is calculated according to the formula of a year's overall salary divided by 13.5, plus 1.5 per cent for each year of service plus compensation for inflation. It is payable whenever an employment contract ends for whatever reason, and is based on length of service with the company.
The TFR payment scheme has been reformed. Since 2007, the employer's contributions for the TFR have been transferred to either a state pension fund or private complementary pension funds.

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): 1) For employers with more than 15 employees (or five in the agricultural sector) in one production unit, or more than one in the same municipality, and employers employing more than 60 workers wherever located. In case of unfair dismissal (lack of justification, discriminatory, irregular procedures):
* Mandatory reinstatement of the dismissed employee and payment of damages for the period between dismissal and the reinstatement but not less than five months' pay.
* Alternatively, when reinstatement is refused by the employee: payment of damages amounting to 15 months' pay.

2) For establishments with up to 15 employees (or 5 in the agricultural sector):
* Rehiring (new contract) or if refused by the employer, compensation ranging from 2,5 to six months' pay (depending on job tenure and firm size), up to 10 months pay for more than 10 years of service, and up to 14 months for more than 20 years of service. However, when the dismissal is held to be discriminatory or however based on prohibited grounds or retaliatory or in any other case in which the law provides the dismissal to be held null and void mandatory reinstatement of the dismissed employee and payment of damages for the period between the dismissal and the reinstatement but not less than five months' pay would apply.

Remarks

First category, see: art. 18 Act 300/1970 (workers' statute).
Second category, see: art. 8 Act 604/1966.

Reinstatement available: Yes

Remarks

Depending on the number of employees as previously mentioned reinstatement can be either mandatory or optional: art. 18 Act 300/1970 Act (workers' statute) and art. 8 Act 604/1966.

Preliminary mandatory conciliation: Yes

Remarks

Art. 5 Act 108/1990 (applicable only to dismissals within establishments with up to 15 employees).
(Note: when this article is not applicable, conciliation is optional according to art. 410 Civil Procedure Code).

Competent court(s) / tribunal(s): labour court

Remarks

Art. 413 Civil Procedure Code.
The labour court "giudice del lavoro" is integrated into the organization of the general civil court system, but follow special procedures.

Existing arbitration: Yes

Remarks

Art. 412-ter Civil Procedure Code: arbitration must be foreseen by a collective agreement.

Length of procedure: 23month(s)

Remarks

As of 2004, for first instance cases
(26 months for appeal cases)
Source: http://www.corteappellocatania.it/formazione/051007/durata.pdf, p. 3
citing the 2006 report of the European Commission for the Efficiency of Justice : http://www.coe.int/t/dghl/cooperation/cepej/default_en.asp)