• Insights

New collective redundancy procedure in Italy

Italy
08.02.22
1
Written by
Toffoletto de Luca Tamajo, working in employment law since 1925.
Italy has introduced additional notification and consultation obligations on employers of 250+ staff when planning plant, branch or office closures.

 

Employers that employed on average at least 250 employees (including apprentices and managers) during 2021, and that intend to proceed with the closure of a plant, branch or local office with definitive termination of activity involving dismissal of at least 50 employees, must follow a special information and consultation procedure with unions and the authorities.

The mandatory procedure provides that employers must notify their intention to proceed with the closure at least 90 days before the start of the collective redundancy, providing the reasons for it, expected timing, number and type of redundancies to the following parties:

  • trade unions (local unions and works councils);
  • the regions involved; and
  • the labour authorities (Ministries of Labour and of Economic development and ANPAL, the National Agency for Active Labour Market Policies).

 

The employer must then draw up a plan to limit the employment and economic impact of the envisaged closure and redundancies, which will then be discussed with all the authorities listed above.

If the consultation ends without reaching an agreement or in the event the plan is not presented or is incorrect, the employer will face increased costs compared to those of the regular redundancy procedure.

Redundancies cannot be implemented before the end of the consultation. If the collective redundancy procedure is started after the end of consultation described above, the first 45-day phase does not apply.

In addition, the procedure does not apply to companies that are in a situation of probable crisis or insolvency.

This new procedure is set out in the Budget Law for 2022 (paragraphs 224 to 237).

 

For more information on collective dismissals, you can consult Chapter 13 of the Ius Laboris Global HR Law Guide

Authors
Valeria Morosini
Valeria Morosini
Partner - Italy
Toffoletto De Luca Tamajo
Melania Soncin
Associate - Italy
Toffoletto De Luca Tamajo