The “August Decree” and the wages guarantee (redundancy) Fund: first instructions from the National Social Security Institute (INPS)

25 September 2020

It is well known that the August Decree earmarked a further 18 weeks of supplementary wage support (cassa integrazione) to be used between 13 July and 31 December 2020. These are split into two separate periods of 9 weeks, as the INPS clarified in its message 3131/2020. Any weeks already used since 13 July based on the previous decrees will be taken into account in calculating the first 9 weeks. Applications for the two periods should be submitted to INPS separately.

More particularly, the Decree provides that the last 9 weeks can availed of only if the entire previous 9-week period has been used. When submitting the application for the last 9 weeks, the employer will also have to self-certify any reduction in turnover occurring as a result of the COVID-19 emergency during the first six months of 2020. Without such self-certification, the company will be obliged to pay the INPS an additional contribution of 18% of the pay that would have been owed to the worker for hours not worked.

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