There has been several recent developments in the world of Italian Payroll legislation.
Businesses in Italy are now set to receive new financial incentives should they employ a person who is registered with the ‘Youth Employment Initiative National Operational Program’. This incentive scheme became active as of the 3rd of October 2014, remaining in action until the 30th of June 2017. This serves the purpose of kick starting the European Youth Employment Initiative.
Any potential employee has to be aged between 15 and 29, with completed compulsory schooling if under the age of 18. They must also not be currently employed or enrolled in any training courses or study programmes. This incentive now applies to all commonplace open-ended hiring contracts and temporary hiring contracts, whose term is initially foreseen for a time period of at least six months.
The scheme also applies to temporary hiring contracts of 12 months and part-time work with hours of work at least 60% of the normal performed by someone in full time employment, alongside hiring contracts as working members of cooperatives; if presented with a subordinate contract of employment.
However, the scheme does not apply to any apprenticeship contracts, any domestic work, job sharing, intermittent work or accessory work. Paired with these factors, please take note that the incentive scheme does apply to staff leasing agency benefits in relation to contract hiring from remuneration for employment.
The financial amounts available for each type of contract hire is available below:
Profile category of employees
……………………………………………………….LOW MEDIUM HIGH VERY HIGH
A) temporary hiring contracts- 6 Months 0 0 €1,500 €2,000
B) temporary hiring contracts- 12 Months 0 0 €3,000 €4,000
C) open ended hiring contracts €1,500 €3,000 €4,500 €6,000
For any temporary contracts that last less than 6 months, the incentive quantity will be issued in six monthly instalments of equal amounts. For any temporary contracts lasting over twelve months, also including permanent contracts, the amount is paid over 12 months in the same fashion.
Further Italian payroll developments include the announcement from the INPS (Istituto Nazionale della Previdenza Sociale) that those employees who are ill or sick, and therefore absent, but wish to return to work before their initial return date will only be allowed to do so if a suitable medical certificate from a physician is obtained.
The Ministry of Transport has requested a compulsory legislation to register all company cars assigned for a period of over a month. This came into play on the 3rd of November 2014 but is only for cars assigned from this date onwards. It doesn’t relate to companies who provide transport services, nor does it relate to those who are obliged to have a national electronic register licence.
Finally, the Ministry of Labour in Italy have placed limits on the number of temporary contracts a person can have. The limit will be continually assessed by the ‘National Collective Labour Agreement’. Should a violation of this rule occur, a penalty would apply. This may risk the ability to specify new temporary contracts the following year.
For more information on Italian Payroll, Working in Italy or Contracting in Europe visit the Euro Accountancy & Finance Services website.