LabLaw Papers – Dismissal Ban in Italy
A LabLaw – Studio Legale Rotondi & Partners Publication
This paper aims to provide an overview of the limitations related to the exercise of the right to dismiss employees for objective reasons, considering the succession of emergency provisions and the new final deadline for the “dismissal ban” to expire, set for 31 December 2021. Firstly, this publication reconstructs the different formulations contained in the emergency decrees aimed at preventing dismissals. Secondly, this paper provides a precise and analytical description of the current regulatory framework. Within this framework, it deals with some critical issues relating to the field of application of the ban. It also deals with issues relating to the extension of the ban on dismissals (e.g. which redundancies are included and which are excluded). Additionally, we examine potential strategies and opportunities to be seized in this new regulatory context and anticipate what to expect after the end of the ban.
Key Action Points for Human Resources and In-house Counsel
The generalised “Italian-style” ban dismissal had deleterious effects on youth and female employment, favoring the so-called insiders, i.e., those subjects who are already included in the labour market on a permanent basis and who, compared to other categories on the margins of the same, already enjoy a system of protection.
Another crucial point is that of planning the entrepreneurial choices to be adopted at the end of the period of inhibition; an aspect that is perhaps not at the center of the debate.
Companies will also be called upon to conduct an evaluation that will have to focus on the ability of the entrepreneur himself to foresee his new post-pandemic size. In other words, the next few months are likely to be devoted to understanding whether or not the trend in the entity’s respective market is moving onward and upward once the shock absorbers supporting the workforce have been withdrawn.
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