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Mandatory fixed-term contract extension ends in Italy

Written by
Toffoletto de Luca Tamajo, working in employment law since 1925.
The Italian Government is ending the requirement on employers to extend fixed-term contracts in the context of the coronavirus pandemic.  

The obligatory extension of fixed-term contracts (including temporary agency work) and apprenticeships for a period corresponding to the suspension of work activity as a result of the Covid emergency has been repealed. This requirement was set out in  the ‘Rilancio’ Decree of 19 May 2020 (see here for details).

Until 31 December 2020 it will be possible to extend and renew fixed-term contracts just once and for a maximum period of 12 months without providing any justifying reason for the extension or renewal. The extension must not lead to 24-month total limit being exceeded, unless otherwise provided for by collective bargaining agreements.