PA Decree gets the green light from the Senate: it’s now law. From holidays to recruitment: what’s changing

Strengthening the autonomy and functionality of local authorities and improving efficiency in sectors such as healthcare, equal opportunities and public works. These are some of the objectives of the PA Decree, to which the Senate has given its final approval. The government, through the Minister for Relations with Parliament, Luca Ciriani, had called for a vote of confidence on the measure. The process of converting the decree-law into law began on 8 September and must be completed by 6 October, otherwise it will lapse. The text now passes to the Senate for final approval. In essence, it is an omnibus bill.

One of the most significant changes for public sector employees concerns annual leave. With a view to bringing Italian law into line with European case law, the legislation provides for the removal of the ban on the payment of unused annual leave, rest days and special leave, even in the event of termination of employment. The measure allows for the possibility of receiving financial compensation in the event that annual leave is not taken. This right, however, may be forfeited if the employee has deliberately chosen not to take their annual leave despite having been given the opportunity to do so by their employer and having been adequately informed of the consequences of not taking it. The PA Decree also amends the Consolidated Law on the Organisation of Local Authorities (TUEL) by modifying the provisions on the consequences of a declaration of financial distress. Among other things, it provides for the possibility for a financially distressed local authority to take out loans to cover off-balance-sheet debts and the obligation to approve the rebalanced budget together with the financial statements for the last financial year, as well as the possibility for local authorities to entrust the enforced collection of their own tax and asset-related revenues to AMCO. There are also provisions relating to the staff of various authorities, including recruitment plans and the extension of fixed-term contracts.

In the field of education, the decree extends, until the 2027/2028 academic year, the special scheme which allows service in state-recognised private schools for at least three years (even if not consecutive) within the preceding ten years to be considered a valid requirement for teaching, in lieu of a teaching qualification. This measure applies to individuals whose applications to enrol on teacher-training courses have been rejected due to a lack of available places.In the university sector, however, the main changes concern the names of qualifications awarded by institutions of higher education in art, music and dance (AFAM): first- and second-level academic diplomas will be renamed bachelor’s degrees and master’s degrees, respectively. On the subject of equal opportunities, the measure also increases the allocation for the Single Fund for the Inclusion of People with Disabilities by €23,612,251 for 2026.

The entire second section of the text is devoted to the seismic emergency in the Campi Flegrei. Following the earthquakes of 31 July 2026 and 1 August 2026, the PA Decree provides that the Campania region, through the municipalities of Monte di Procida, Pozzuoli, Bacoli and Naples, to award a grant for independent accommodation (CAS) to households that have had to evacuate their main residence due to it being unfit for habitation, in accordance with measures adopted by 15 September 2026. The amount of the monthly grant varies according to the composition of the household. The allowance is set at 400 euros for single-person households, 500 euros for two-person households, 700 euros for three-person households, 800 euros for four-person households and 900 euros for households of five or more people. Where there are persons aged 65 or over, or those with a degree of disability of at least 67 per cent, an additional allowance of up to 200 euros is granted. The allowances are paid from the date specified in the eviction order until the conditions for returning to the home are met. To cover the costs of seismic retrofitting and repair works, the decree also establishes a fund with a total allocation of 100 million euros, of which 30 million euros is earmarked for 2026 and 70 million for 2027. In addition, local authorities within the Metropolitan City of Naples affected by bradyseism in the Campi Flegrei area are permitted to organise recruitment competitions reserved (not exceeding 50 per cent of the available posts) for fixed-term staff specialising in seismic and volcanic risk, employed within their respective municipal civil protection departments.Finally, with regard to the municipalities in Central Italia affected by the earthquakes of August 2016, the deadline for extraordinary administration has been extended until 31 December 2029. The aim is to ensure the continuation and acceleration of the reconstruction process.