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New Unemployment Benefit Rules in Italy PDF Print

LayOFFThe Italian government announced that it is changing the unemployment benefit schemes. Since the implementation of the Fornero Reform, a set of changes have succeeded in the Italian unemployment law, dismissal procedures and mobility allowance.

A new change is coming in force from the beginning of next year. The amendment foresees that employees dismissed under collective dismissal procedure will no longer be subject to mobility lists and therefore, the mobility allowance.

The mobility lists and benefits were part of law number 223, implemented in 1991. Employees which were dismissed under collective staff reductions were included in the so-called mobility lists and were also subject to the mobility allowance. This privilege will cease from 01/01/2017.

Starting with 2017, dismissed employees will only benefit of the NASpI unemployment benefit. The NASpI unemployment benefit will remain the only form of unemployment benefit in Italy. NASpI was introduced in May 2015 and replaced the previous 2 forms of unemployment benefits – ASpI and mini-ASpI.

The NASpI unemployment benefit is paid for 2 years maximum. The base of calculation for the benefit is the remuneration previously received.

In recent years a trend has developed in the collective dismissal procedure: older employees are more likely to be subject to collective dismissals. Although it might seem discriminatory to choose the older workers, they suffer minor damage from dismissal due being close to retirement.

According to the new provisions companies will have to submit a written form of the dismissal procedure to the Regional Directorate of Labor. The collective staff reduction form must contain the list of impacted workers along with the selection criteria, which must be transparent.

The employer engaged in collective dismissal has to pay a layoff tax for the unilateral termination on an indefinite employment contract. The tax is called “Ticket licenziamento Inps” and is calculated based on the seniority and on the gross salary of the dismissed employee.

The new reform aims to simplify the complex structure of unemployment benefits currently applied in Italy and streamline it with that of other EU countries.