This publication features the latest Employment developments in Italy.
- New laws and regulations
- Case law developments
New laws and regulations
Whistleblowing Directive: implementation expected in December
According to the latest European Delegation Act approved by the Italian Parliament, EU Directive No. 2019/1937 (so-called Whistleblowing Directive) is expected to be implemented by the Italian Government no later than 10 December 2022. We will keep you posted with all relevant news as soon as the official text of the law is published.
New tax exemption on fringe benefits
Within the context of a law allocating resources to fight the current downturn in the economy, the Italian Government approved new provisions that call for tax exemption on fringe benefits to be raised to EUR 3,000 (the previous level of tax exemption was EUR 600 for 2022).
New delocalization law
We have been expecting new provisions on delocalization and shutdown of plants involving the dismissal of more than 50 employees for some time now and the new law has been approved by Italian Parliament (you can read more in our latest newsletter on the matter here). In particular, for employers who employ on average 250 employees and who intend to dismiss 50 or more employees, the new law provides that they must inform the unions and competent administrative authorities of their intention to proceed with a collective dismissal at least 180 days before starting said collective procedure. This means that the total timing for consultation in these cases may go up to 255 days.
Case law developments
Relocating an employee multiple times to punish them amounts to harassment
The Italian Supreme Court ruled that an employee who has been frequently relocated to other job positions and workplaces without actual technical or organizational reasons and only for punitive purposes is entitled to damages for harassment. To this end, the employee must prove that the employer carried out, with persecutory intent, a behavior detrimental to their health, dignity or personality that led to their isolation from other employees.
An employee who works during sick leave may be reinstated in case of dismissal
In a recent ruling, the Italian Supreme Court ruled that an employee on sick leave who works for other employers without this activity aggravating their illness or delaying their return to work cannot be lawfully dismissed. According to the Court, in this case there would not be any violation of the basic principles of correctness and good faith and the unlawfully dismissed employee would be entitled to reinstatement and economic damages.
Failure to offer an alternative role to a dismissed employee leads to their reinstatement
Following a recent ruling by the Italian Constitutional Court, which extended the right to reinstatement to certain cases of unlawful economic dismissal, the Italian Supreme Court now deems that an employee unlawfully dismissed must be reinstated when the employer failed to prove that it was impossible to usefully reemploy them.