News n. 34/2024
This News summarizes the latest labor and welfare news.
List of topics covered
1) News on staff secondment: from 01.01.2025 it will be subject to VAT
2) Save Infractions Decree and news about the fixed-term contract.
3) Publication of the New Skills Fund Decree 2024.
4) Supplementary Agreement CCNL Terziario - Confcommercio dated Oct. 31, 2024 on professionalizing apprenticeships
5) Contractual Renewal of the National Collective Bargaining Agreement for Executives of Manufacturers of Goods and Services (CCNL Industrial Executives)
6) News Inps with instructional guidance for processing applications for layoff funds for employers and workers in the fashion industry
7) Inps instructions on the contribution exemption due in the case of hiring personnel who are beneficiaries of Inclusion Allowance (ADI) or Support for Training and Work (SFL)
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1) News on Personnel Secondment: from 01.01.2025 it will be subject to VAT
By Law No. 166 of Nov. 14, 2024, effective Nov. 15, 2024, converting "Save Infractions" Decree No. 131 of Sept. 16, 2024, the Legislature provided for the repeal of Paragraph 35 to Article 8 of Law No. 67/1988, which provided for the non-relevance for VAT purposes of employee secondment operations, in case of payment by the secondee of a consideration equal to the costs incurred by the seconding employer (secondments of personnel against which only the reimbursement of the relevant cost is paid).
As a result, as of Jan. 01, 2025, the sums paid for staff loans/detachments will become VAT taxable.
In the technical report of the provision, it is pointed out that "subjecting such refunds to VAT results in a debit value added tax in the hands of the seconding party and a credit value added tax in the hands of the seconded party. Since both are VAT operators, the VAT paid by the first party would be matched by a VAT deduction of the same amount by the second party, with neutral effects on the overall tax revenue." But such neutrality may not be guaranteed in cases where the secondee is a VAT subject with a restriction on the right to deduct input VAT. For example, for a secondee operating under a VAT-exempt regime, subjecting the secondment of personnel to the tax essentially results in a higher cost.
Conduct by taxpayers prior to January 1, 2025, for which no final assessments have been made, is unaffected.
The repeal of the provision responds to the need to implement the judgment of the Court of Justice of the European Union of March 11, 2020, Case C-94/19, regarding the preliminary question raised by the Court of Cassation regarding the compatibility of Article 8 paragraph 35 of Law No. 67/1988, with respect to the provisions of the European VAT Directive. Therefore, the repeal of the rule became necessary in order to avoid the opening of infringement proceedings for failure to comply with the above judgment.
2) Save Infractions Decree and news about the fixed-term contract
Decree No. 131 of Sept. 16, 2024 (the so-called "Save Infringement Decree") also intervened on the regulation of fixed-term employment contracts, following the indications of the infringement procedure in which the European Union requested Italy to bring its domestic legislation into line with the EU Directive 1999/70/EC on fixed-term work. Accordingly, the legislature varied Article 28 of Legislative Decree No. 81/2015 "forfeitures and protections," introducing the possibility for the judge to award compensation even in an amount exceeding 12 months' salary, if the worker proves that he has suffered greater damage, and eliminated the reduction of monthly payments that may have been left to collective bargaining.