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News August Decree

This is to report the main labor-related changes introduced by the so-called August Decree (Decree Law No. 104/2020), which came into effect on August 15, 2020, as the latest measure adopted by the government to address the Covid-19 emergency.


In the examination of the new regulations on social shock absorbers during employment, some of the provisions introduced by the Cure Italy Decree and by the Relaunch Decree, to provide a summary overview of the emergency tools to support businesses and workers (also present summary outline).


In addition to the main topic of social safety nets, other new features introduced by the August Decree will be covered, such as: exemption from paying social security contributions for companies that do not apply for redundancy payments, employment-related contribution concessions, the discipline of fixed-term contracts, the extension of the ban on layoffs, the further installment of suspended payments, and the doubling limit on corporate welfare 2020.


Treatments of ordinary layoffs, ordinary allowance and derogation layoffs

D. Cure Italy → Art. 19 to 22-quinquies, Decree Law No. 18/2020 conv. in L. No. 27/2020


This decree introduced three types of wage supplementation to cope with the same extraordinary event, with a duration of 9 weeks: the CIGO, the ordinary allowance and the cassa in deroga.


Applications for the cassa integrazione ordinaria and ordinary allowance, filed with the Inps, provided for the obligation of prior information, consultation and, if necessary, joint examination with the comparatively most representative trade unions at the national level.


In converting the decree into law, the possibility is granted to be able to apply for ordinary supplementary treatment for an additional period not exceeding three months, to employers with production units located in the so-called. red zone, specifically:

  • With production units located in the municipalities identified in Annex 1 of the Prime Minister's Decree of March 1, 2020.;

ALSO for those

  • who do not have a registered office or production or operational unit in the above municipalities, limited to workers in force who are resident or domiciled in the above municipalities.


The application for the cassa in deroga, submitted to the regions, on the other hand, required prior agreement with the comparatively most representative labor organizations nationwide for employers with more than five employees.


As for multi-located companies (companies with units located in at least 5 Regions or Autonomous Provinces), the application followed a simplified procedure by submitting it to the Ministry of Labor and Social Policy.


In the conversion of the decree into Law, the possibility is granted as provided for the ordinary redundancy fund and the ordinary allowance to be able to apply for the granting of the treatment for additional period not exceeding three months, to employers with units or workers located in red municipalities.


Likewise, it is recognized for employers with production units-or at any rate for their workers in force residing or domiciled-in the regions of Lombardy, Veneto and Emilia-Romagna (so-called yellow zone), a wage supplementation fund treatment in derogation, for an additional period not exceeding four weeks, which can be authorized by the same granting measure.

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