Labour Decree, the major changes

31 May 2023

Good morning everyone and welcome to a new HR Capital Tip! 

With the issuance of Decree-law no. 48/2023, also known as the “Labor Decree,” important changes have been introduced regarding employment relationships and social assistance. 

In particular, among the major changes, adjustments have been made to the legislation on fixed-term contracts, providing greater flexibility in the inclusion of justifications for extending employment beyond 12 months, simplifications regarding transparency obligations in employment contracts, and raising the threshold for exemption of “fringe benefits” up to €3000 for parents with dependent children. Additionally, a further reduction of the INPS (National Institute for Social Security) contribution rate has been provided for pay packet workers. 

The same decree has also provided for the phasing out of the “Citizens’ Income” starting from January 2024, with the introduction of the new “Inclusion Allowance” and the related relief for their employers. There are new provisions regarding the single allowance, workplace safety, incentives for hiring young “NEETs” (Not in Education, Employment, or Training), and individuals with disabilities, as well as the refinancing of the special redundancy fund and the Fund’s new responsibilities.  

Thank you for following us, and stay tuned for the next update! 

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