Observatory

Extension of Derogation for Cassa Integrazioni Guadagni (redundancy benefits) for 2011

15 December 2010

The derogation of the redundancy benefits, since its introduction with the “anti-crisis” decree (Italian Legislative Decree no. 185/08, converted into Italian Law no. 2/09) has been the only instrument enterprises can use which are normally excluded from applying the redundancy benefits due to the type of employment contract, company sector or company size.

The derogation of the redundancy benefits, since its introduction with the “anti-crisis” decree (Italian Legislative Decree no. 185/08, converted into Italian Law no. 2/09) has been the only instrument enterprises can use which are normally excluded from applying the redundancy benefits due to the type of employment contract, company sector or company size. The 2011 economic  manoeuvre, approved last week, establishes an extension of this benefit for 2011 as well: based on specific government agreements the Ministry of Labour can grant redundancy benefits, by means of derogation, for a maximum period of 12 months. This is while waiting for an overall reform of the fund, recently pushed by the Collegato Lavoro (Labour Law) delegating this task to the government to enact it in the next 24 months.

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