Italy: Council of Ministers' measures to support workers and companies

Submitted by cambrosio on Wed, 04/01/2020 - 10:51
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governo.it (16.03.2020)

Measures to strengthen the economic support for families, workers and businesses related to the epidemiological emergency from COVID-19 (decree-law). Specific support for workers and companies, with the aim that no one should lose their job because of the emergency.

measures summary

- The redundancy fund is extended to the entire national territory, to all employees, of all production sectors. 
- A Fund of last resort is set up with a budget of 300 million euros as a residual fund to cover all those excluded from the compensation of 600 euros, including registered professionals. 
Equalization to sickness is envisaged for the period spent in quarantine or in fiduciary domicile with active surveillance for Covid-19, for the private sector (for the public sector the equation had already been included in the Legislative Decree of 9 March 2020).
- Introduction of Worker bonuses: workers with a gross annual income of up to € 40,000 who perform their services in the workplace in the month of March (not in smart working) are awarded a bonus of € 100, non-taxable (in proportion to the days worked).
- Compensation of € 600 is recognized, on a monthly, non-taxable basis, for self-employed workers and VAT numbers. The compensation goes to an audience of almost 5 million people.
- Support measures for honorary magistrates in service : recognition of a monthly economic contribution of 600 euros for a maximum of three months and based on the actual period of suspension of activity.
- Measures in support of the aviation sector, and the agricultural and fisheries sector, and the the increase in the endowment of development contracts, to strengthen the country's production structure.

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Support for workers and companies, with the aim that no one should lose their job because of the emergency

  • the redundancy fund is extended to the entire national territory, to all employees, of all production sectors. Employers, including companies with fewer than 5 employees, who suspend or reduce their business following an epidemiological emergency, can resort to the layoffs earnings notwithstanding the new reason "COVID-19" for the maximum duration of 9 weeks. This possibility is also extended to companies that already benefit from extraordinary layoffs;
  • the possibility of accessing the ordinary check with the causal "COVID-19 emergency" is also extended to employees employed by employers registered in the Wage Integration Fund (FIS) who employ on average more than 5 employees;
  • compensation of € 600 is recognized, on a monthly, non-taxable basis, for self-employed workers and VAT numbers. The compensation goes to an audience of almost 5 million people: professionals not enrolled in orders, co.co.co. in separate management, artisans, traders, direct farmers, settlers and sharecroppers, seasonal workers from the tourism and spa establishments, show business workers, agricultural workers;
  • Fund of last resort is set up with a budget of 300 million euros as a residual fund to cover all those excluded from the compensation of 600 euros, including professionals registered with the orders;
  • support measures for honorary magistrates in service : recognition of a monthly economic contribution of 600 euros for a maximum of three months and based on the actual period of suspension of activity. The contribution does not go to honorary public or private employee magistrates, even if in retirement, and cannot be combined with other contributions or indemnities, in any case called, paid pursuant to the decree;
  • Equalization to sickness is envisaged for the period spent in quarantine or in fiduciary domicile with active surveillance for Covid-19, for the private sector (for the public sector the equation had already been included in the Legislative Decree of 9 March 2020);
  • in support of working parents, following the suspension of the school service, it is possible to take parental leave for children up to 12 years of age or with disabilities in a situation of ascertained seriousness for 15 additional days at 50% of the remuneration treatment. Alternatively, a bonus will be awarded for the purchase of baby-sitting services within the limit of 600 euros, increased to 1,000 euros for the staff of the National Health Service and law enforcement agencies;
  • the number of days of paid monthly leave covered by a notional contribution referred to in article 33, paragraph 3, of law no. 104, in case of serious handicap it is increased by a further twelve days in total;
  • air transport measures, such as the recognition of compensation for damages suffered by companies holding public passenger licenses carrying public service obligations, the increase in the special fund for the support of income and employment and for the conversion and retraining of personnel in the sector, as well as the creation of a new company wholly controlled by the Ministry of Economy and Finance, or controlled by a company with a prevalent public participation, including indirectly, in consideration of the situation caused by the emergency on the Alitalia - Società Aerea Italiana Spa and Alitalia Cityliner Spa both in extraordinary administration;
  • the increase in the endowment of development contracts, to strengthen the country's production structure;
  • measures in favor of the agricultural and fisheries sector, such as the possibility of increasing the percentage of advances due to companies entitled to access to CAP contributions from 50 to 70% and the establishment of a fund at the Ministry of Agricultural, Food and Forestry Policies , to ensure the business continuity of agricultural, fishing and aquaculture enterprises, to cover interest expense on bank loans and the costs incurred for interest accrued on mortgages, as well as for the temporary cessation of fishing activities.