The amendment to the stability law (currently up for approval in the House of Deputies), includes, among other changes, the extension for all of 2011 of the possibility for companies to use workers earmarked for redundancy schemes (Cigo and Cigs) in professional requalification or training programmes which can include production activities connected with their learning. Therefore, for next year as well workers can be involved in company training projects. The employer will pay the difference between the government benefits and the worker’s wages.
In addition to the above, the same text requires for 2011:
– the extension of redundancy, unemployment and special unemployment schemes, including without interruption, as long as there are government agreements and the duration is not longer than 12 months; in this situation the progressive reduction of benefits has been confirmed (10% in the event of first extension, 30% for second extension and 40% for subsequent extensions);
– confirmation of authorisation to INPS regarding advance of redundancy benefits by means of exemption;
– requirement of extraordinary redundancy and unemployment benefits for employees of commercial enterprises with more than 50 employees;
– possibility of registering workers of companies with fewer than 15 employees on the unemployment lists, who have been dismissed for justified objective reason, connected with the reduction, transformation or sale of the activity or work;
– extension of the increase of the amount of the benefit for defensive solidarity contracts, equal to 80% rather than 60%;
– the confirmation of the maximum extraordinary redundancy benefits by means of exemption, equal to 24 months.
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INAIL, with its note no. 6464/2010, concerning ancillary occasional professional services, explained that the value of a work voucher does not necessarily refer to an hour of service. This is due to the fact that there is no specific legal reference that links the work voucher to a minimum hourly wage. Therefore, the determination of the remuneration is left up to the autonomy of the customer and service provider, who shall be free to contract the remuneration in relation to both a unit of time and achievement of a result. The Institute also explained that the communication indicating start of the service needs to be performed only once even if the service is performed on a weekly, monthly or annual basis and even if there are days within the period when the service is not provided. Therefore, the need to send a communication for each work episode is excluded and the customer needs to make the appropriate variations only if the previously communicated period changes.
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INAIL, with its note no. 7918/2010 underlines the new features introduced by the so-called “Collegato Lavoro” (Law 183, new labour laws) and, in particular, underlines that an Emens electronic report prevents the employer from receiving a fine from 1,500 to 12,000 euro for each irregular employee (more than 150 euro for each day). Since the fines are not applicable if previous contribution requirements were complied with showing the willingness of the employer not to hide the employment, even in the case of a lack of correspondence between the job duties and the worker’s qualification. Therefore, all employment situations for which there is no contribution requirement, such as casual work or apprenticeships, risk being excluded from this opportunity.
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As an annex to its circular letter no. 132/2010 INPS published the EU forms U1 and U2 (competence of INPS) as well as form U3 (competence of the Centro per l’Impiego – Italian Employment Office) for unemployment benefits. This is the result of the application of new provisions in force as of 1 May 2010 regarding unemployment benefits and reimbursements between institutes.
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The appreciation rate for severance indemnities (T.F.R.) contributions, accrued at 31 December 2009, amounted to 2.063881%.
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There are two possible times for obtaining a refund of taxes paid on sums received by workers during the 2008/2010 period for nighttime and overtime work. The first at the time of the year-end adjustment operations, while for the credit accruing in the years 2008 and 2009 when tax returns are prepared for the current year, i.e. July 2011. The joint circular letter no. 47/2010 (Ministero del Lavoro – Italian Ministry of Labour and Agenzia delle Entrate – Italian Tax Authority) clarifies, with retroactive effect, which sums are eligible for a tax abatement. The position is extremely open, the following sums are eligible for a tax break: 1. for overtime. The circular letter explains that Resolution no. 83/2010 was not intended to classify overtime work as such as eligible for a tax break, but only overtime related to productivity parameters; 2. for nighttime work. All wages paid for this purpose are eligible for a tax abatement; 3. as indemnity or increase for shift work as long as this organisational model is per se a form of organisational efficiency.
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The Ministry of Labour with its reply no. 33/2010, explained that employees of EU companies who work in
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The Agenzia delle Entrate (Italian Tax Authority) with its resolution no. 195/E of 12 October 2010, clarified that the employee bonus – introduced with Law no. 244/2007 – is also due in the event of employee dismissals or resignations as long as the employer maintains, on an annual average, the increase in number of employees required by law (three years, or two for SMEs).
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INPS, with its message no. 25602/10, clarified that the exemption from contributions applicable to stock option plans also regards those which entail assignment of “limited” shares or rights to future assignment of shares. The Institute explained that the reference law – represented by article 24bis, paragraph 8, of Italian Legislative Decree no. 112/2008 – includes a tax exemption for employment income resulting from stock option plans exercised after 25 June 2008 and states that in the absence of a legal definition of stock option this exemption is applicable not only for plans with assignment of option rights but also those with assignment of granted shares in compliance with the conditions of such plans. Lastly, incentive plans with payment in cash for the value of the shares remain excluded.
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INPS with its circular letter no. 130/10, provided clarifications related to the compatibility and possibility of accumulation of redundancy payments and other financial aid with casual work for the years 2009 and 2010. In particular, it explains that for casual work performed in 2009 and 2010 by beneficiaries of redundancy payments within the limits of 3,000 euro net, the IVS amount included in the “voucher” is not credited to the INPS contribution of the self-employed worker in favour of beneficiaries, but is earmarked for the entity which sustains the non-contributory payment for the benefits or aid.
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INPS, with its message no. 19684 of 28 July this year, publicised the creation of a “payment plan” web application, i.e. a new tool, currently being tested, for companies with employees so that these companies can obtain a short-term extension on their INPS payments referred to the amounts of monthly contributions not paid by the normal deadline of the 16th of the month following the pay cheque month. By using the INPS electronic services section companies can ask to have these amounts paid in instalments for a total of four months, with the possibility of using this option up to a maximum of two times during a calendar year. Not more than six instalments can be requested with the web application and they must be paid within the year accrued; in addition, the amount of each instalment cannot be less than 100.00 euro. Lastly, failure to meet the deadlines will result in termination of the payment plan and the amount due will be turned over to tax collectors.
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The recent reforms in pension laws, the most recent introduced with Italian Legislative Decree no. 78/2010 have made restrictive modifications to the rules for obtaining a pension and sharp decreases in the amount of the benefit. The insufficiency of the pension system resulted in the adoption of policies for the development of a so-called “second tier”, meaning supplementary pension funds, financed with the entire amount of the termination benefits of the registered workers. However, it is necessary to underline that the law has set up a series of services to be provided by pension funds to assist workers experiencing financial difficulties (purchase of the main dwelling for the worker and his/her children, medical expenses and other unspecified expenses up to a limit of 30%). In fact, in a similar manner to what occurs with TFR it has been established that, if certain conditions occur, the fund advances to workers part of the accumulated amount, which can be later reinstated in order not to completely compromise its main function. In addition, before retiring, it is possible to include situations for pension purposes and for a nominal payment such as termination of a job with unemployment between 12 and 48 months, or if the employer used redundancy or unemployment schemes.
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The appreciation rate for severance indemnities (T.F.R.) contributions, accrued at 31 December 2009, amounted to 2.159794%.
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With its resolution no, 83/E/10 the Agenzia delle Entrate (Italian Tax Authority) in relation to the possibility of applying the substitute tax of 10% on all sums paid for nighttime work, as well as overtime “correlated to increases in company productivity”, has confirmed the possibility of applying a substitute tax of 10% on all sums paid for nighttime work for the years 2008 to 2010, for both hourly wages and overtime pay, regardless of whether occasional or ordinary work performed at nighttime (both shift and non-shift workers). For the years 2008 and 2009 companies, upon specific application made by the worker, are required to issue the worker a certificate which states that any sums paid, even if potentially eligible for tax abatement, were not subject to application of the 10% substitute tax, but ordinary taxation. Employees can recover the extra taxes paid with this certificate.
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With its circular letter no. 119/10 INPS provides instructions on the procedures for sending medical certificates to the Certified E-mail box (PEC) indicated by the employer, as an additional procedure envisaged by Italian Ministerial Decree of 26 February 2010. Following recent changes to the law, ill workers who have the right to an economic indemnity from Inps are no longer required to send Inps the medical certificate, except in cases where it is impossible to send it electronically, however workers are still required to send or transmit (by registered post with return receipt) the employer the medical certificate in printed form given to them by their doctor, within two days from when it is issued. However, this obligation is not required if the employers use the new service made available by Inps: sending the medical certificates to a previously indicated certified e-mail box.
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INPS, with its message no. 2180/2010, has provided operating instructions for the procedure for requesting cassa integrazione in the territories of Abruzzo. This is due to the fact that the Italian interministerial decree no. 53256/2010 assigned 60 million euro for financing the benefits for supporting income.
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INAIL, with its note no. 6275/2010 has provided explanations on the new features regarding occupational illnesses, highlighting the differences compared to the lists used to date.
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Inland Revenue Office Resolution no. 83/2010 establishes that the remuneration for nighttime work must be subject to a tax abatement (as per article 2, Italian Legislative Decree no. 93/2008) of the entire amount: i.e. for the ordinary amount and for any overtime due by contract. There are no deviations to this, therefore this benefit is due to all workers regardless of their qualification and the frequency of their nighttime work. The other new feature is that workers can recover this benefit retroactively, starting from July 2008. For this purpose it is necessary to submit amended returns for the years in question or a request for a refund to the competent Agenzia delle Entrate office.
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An additional 10% tax is applied to bonuses and stock options assigned to workers who play executive roles in the financial sector and individuals under continuous and coordinated work agreements in the same sector that are “in excess of triple the fixed portion of compensation". This new tax takes effect on 31 May 2010, in accordance with article 33 of Decree Law 78/2010, converted by Law no. 122/2010. The surtax must be withheld by the withholding agent at the time the bonus or stock option is paid. Procedures regarding eventual audits, enforcement, fines and disputes follow the ordinary regulations in regard to income tax.
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Employers who send an employee to work in another EU member state can assure the seconded worker will maintain the social security arrangement prevailing in the country of origin. This protection is afforded as long as i) the employment in the country of destination is performed on behalf of the employer which normally employs that worker; ii) the expected duration of this activity is less than 24 months; iii) the worker is not sent to take over for a worker who has reached the maximum 24-month term.
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