America’s Cup: fixed-term contracts with special rules

The organiser and the participating teams in the America’s Cup, which is to be held in Naples in 2027, may benefit from a series of exemptions from the standard rules on fixed-term contracts.

Article 4 of Decree-Law 108/2026 (currently under consideration by Parliament) stipulates that ‘needs arising from the event constitute an objective reason’ for setting a fixed term for employment contracts, also allowing contracts to extend beyond the duration limits set out in Article 19(1) of Decree-Law 81/2025 (12 months, as the new decree states that, in any case, the duration may not exceed 24 months). Currently, as a general rule, no justification is required for periods of up to 12 months, even in the event of an extension or renewal. The concession introduced therefore appears to apply in particular to durations exceeding twelve months, for which it is specified that there is a restriction of a maximum of six renewals. No reference is made, however, to extensions, which may ordinarily be limited to a maximum of four. Furthermore, fixed-term contracts may exceed the ordinary limits to a greater extent than permanent contracts. These provisions also apply to temporary agency workers on fixed-term contracts.

However, in the case of of sports workers, in accordance with Article 25 of Legislative Decree 36/2021, the rules set out in Article 26 of the same legislative decree shall apply, if they are more favourable. Workers hired for the purposes of the event are not taken into account for the purposes of calculating the reserved quota for targeted placement, which, as a rule, already excludes fixed-term contracts of up to six months’ duration.

A further concession for employers is the exemption from paying social security contributions for which they are liable, whilst complying with the de minimis rules. The exemption will be granted up to a total limit of 600,000 euros this year and 1.8 million euros in 2027, to cover workers’ pension benefits. The operational arrangements for this exemption, which cannot be combined with other relief measures (including that for sports workers), will be set out in a decree issued by the Ministry of Labour.

No exceptions apply with regard to health and health and safety at work, and the obligation to guarantee posted workers from companies based in other EU Member States the same working conditions as those provided for by Italian legislation and collective agreements. Upon expiry of the contract, this does not constitute a dismissal for the purposes of the anti-relocation procedures or those relating to collective redundancies.