Labor policy in Italy

Italy does not have a unified labor code. Labor legislation is wide ranging, with a number of laws, regulations and statutes which have an important bearing on labor relations. The Constitution of Italy (articles 35-47) contain some declarations of principle, however, in regards to fair pay, the maximum working hours, annual paid vacation, the protection of women and minors on the job, social insurance for old age, illness, invalidity, industrial diseases and accidents, on Freedom of Association, and the right to strike.^[1] It is hard to say what changes would have happened had the Italian constitutional referendum, 2016 succeeded. The Workers' Statute of 1970 has been recently modified, and this plays an increasingly important role.

Employment rights

There are constitutional rights of employment laid out in Italy's constitution. Italy's constitution gives all citizens a right to work, have a fair pay, states the maximum hours that one is able to work, and established paid vacation. Since 1987, the Italian department of labour set the maximum hours that one can work to 48 hours a week. Workers must take one day off for every six days work (Once a week). Workers are entitled to national holidays and regular holidays. There is a minimum of eight days of paid leave for those who provide domestic services, and a minimum of three weeks' paid leave for all other workers.^[2]

Minimum wage and wage guarantee

Italy has no set minimum wage but an employee's salary must be reflective of their quantity and quality of the work that they present. Additionally, the salary must be able to provide the employee a decent living wage for them and their family. Such wage of employee must also consider the average wage of those in the same industry.^[3] Though Italy has no set minimum wage, it does have a wage guarantee fund. This fund, known as the CIG (CASSA INTGRAZIONE GUADAGNI), managed by the National Social Security Institute (INPS), is meant to help those whose hours who have been shortened or those who have been put on temporary suspension.^[4]

Employment protections

The constitution of Italy protects women, minors, the elderly, the ill, the invalid, and those who are hurt on the job. It also protects those who strike, and those who assemble. Women are protected when pregnant and for maternity reasons. From the start of pregnancy to the year following childbirth, unless they are fired for a cause unrelated to pregnancy, women are protected against being let go unless there is a significant reason for this. Woman must take maternity leave two months prior to childbirth and are able to return three months following childbirth. The minimum working age in statutory law is set at fifteen years old, but the civil law varies. Paid sick leave is determined by individual contracts, but one can further sick leave through an unpaid leave. For all employment terminations, employee receives severance pay. The severance payment is a part of the annual salary and is accrued. The severance pay is calculated by multiplying 7.5% by the number of years worked. Additionally, the terminated employee receives 75% of the consumer price index increase. This is to account for inflation.^[5]

Recent Changes

The Jobs Act 2015 introduced controversial changes to labor law. Its aim is to reduce barriers to employment by making it easier to dismiss workers. Article 18 of the Workers Statute 1970 gives workers significant leverage because it requires employers with 15 or more workers to rehire permanent employees who were wrongfully dismissed. And because the article does not apply to companies with fewer than 15 workers or fixed-term employment, the theory is that it results in a labor market where employers are reluctant to hire employees when near the 15-employee threshold.^[6]

References