Referendum, layoffs and time pacts at the centre of the vote

The question on the fixed-term employment contract proposes to amend Legislative Decree 81/2015, eliminating the possibility of entering into the first 12 months of a fixed-term contract without indicating the causal reason, i.e. the reason for which the employer attaches a term to the assignment (today this is the case, the first 12 months are 'acausal'). The wording of the rule, if the amendment were to be approved, would lead to having to always state the reason for a fixed-term contract, up to a maximum of 24 months. In addition, there would be another condition: this reason would have to be provided for in national collective labour agreements or consist of the need to replace other workers. Outside these two hypotheses, it would become impossible to conclude fixed-term contracts. This would severely limit the use of this form of contract.

Finally, the referendum on safety at work aims to extend the joint and several liability between principal and contractor also to the specific risks peculiar to the activity of contractors or subcontractors (i.e. risks strictly related to the activity of the contractor, e.g. related to particular materials or equipment). Today - only for this type of risks - joint and several liability is excluded.

Stop growing protections

If the referendum reaches a quorum and the yes vote prevails, in the event of a dismissal deemed illegitimate by the judge - for all workers, regardless of the date of employment - the protections provided by Article 18 of the Workers' Statute, as amended by Law 92/2012, would revert to application. The repeal of the contract with increasing protections introduced in 2015 could have an impact on cases relating to this type of relationship, which have not yet reached final judgment.

Double track confirmation

The no vote on the ballot aims at confirming the current regime, which provides two types of protection in the case of dismissal declared unlawful:

The two regimes have come very close following the various pronouncements of the Consulta on Legislative Decree 23/2015.

Homeless Compensation

For a worker dismissed by a firm with up to 15 employees, if the judge finds that the grounds for dismissal for just cause or justified reason are not met, the compensation would no longer have the maximum limit of six months' salary of the last global salary, but could be set by the judge. Theoretically, it could also be an indemnity higher than the maximum of 36 months' pay provided for in the contract with increasing protections, for workers in larger companies.

Indemnities between 2.5 and 6 months

The indemnity for a worker unlawfully dismissed by an enterprise with up to 15 employees would remain fixed between a minimum of 2.5 and a maximum of six months' salary of the last de facto global remuneration, taking into account the number of employees employed, the size of the enterprise, the length of service of the worker, and the behaviour of the parties.

This measure also applies to the branches of multinational companies, which may be based in Italy with few employees.

Causes always compulsory

In order to sign a fixed-term contract, one would always need a reason, i.e. the justification for the time limit. The only permissible grounds, however, would be:

The scope of use of the time contract, which today is the predominant form of entry into the labour market, would be more limited.

Causes after 12 months

The fixed-term contract may still be concluded without causal, for the first 12 months. After that, and up to 24 months in total, it must be stated. Reasons must be stipulated:

The reason may also be the replacement of other workers.

Extended liability

The aim of the referendum on safety at work is to repeal a provision that today excludes joint and several liability between contractor and contractor (i.e. the obligation for the client to be involved in any compensation), for accidents linked to the specific risks of the contractor, i.e. unrelated to the activity of the company entrusting the work (for example, risks linked to particular processes or substances, indicated in the risk assessment document of the contractor).

Limited liability

Joint and several liability between principal and contractor would remain in the areas already provided for today: for example, in the case of contributions and retributions not paid by the contractor for its workers. As for safety, there is joint and several liability between principal and contractor for all damages for which the worker, employed by the contractor or subcontractor, has not been compensated by INAIL. Excluding damages resulting from the specific risks of the contractor's activity.

Application after 5 years

According to the amendment to Law 91/1992 proposed by the referendum, Italian citizenship could be granted to foreigners of age who have been legally residing in Italy for at least five years, instead of ten (as now). Should it be approved, however, the other requirements currently demanded would not change, i.e. continuity in permanence, three years' salary, and passing the language test.

The 10-year deadline remains.

Should the referendum fail, the current requirement of 10 years of residence in Italy to apply for citizenship would remain.

Those who support the no vote believe that restricting the issue of citizenship to the residency requirement weakens the value of integration.

Another reason for the 'no' vote relates to the effectiveness of the referendum to deal with issues on which the parliament should legislate.