”Rights and Duties in Employment Relationships” – Insight No. 326 of January 13, 2025

Contents

December 30, 2024
Social Security and Contributions
Postponing Retirement: New Tax and Contribution Incentives for 2025
“2025 Budget Law”

Effective January 1, 2025, the Budget Law introduces amendments to the retirement postponement incentive first established in 2023. This measure allows employees who meet the requirements for early retirement to request their employer to pay the amount equivalent to their personal contribution share directly in their paycheck, exempting them from the obligation to pay contributions and ensuring tax exemption.

The innovation broadens the eligibility criteria, including employees who will meet retirement requirements by December 31, 2025, regardless of age. Furthermore, the payment becomes tax-exempt, increasing the attractiveness of this measure.

The eligible groups include:

A) Employees meeting the requirements under the so-called “Quota 103” by December 31, 2025.

B) Employees meeting the general contribution requirements for early retirement regardless of age by December 31, 2025 (currently 42 years and 10 months for men and 41 years and 10 months for women).

December 30, 2024
Personnel Administration
Special Supplement: Incentives for Night and Holiday Work in Tourism
“2025 Budget Law”

The allocation of company cars is a key topic both as a work tool and a fringe benefit, particularly at year-end The 2025 Budget Law introduces a special wage supplement for workers in food and beverage service establishments, the tourism sector, and thermal resorts. Effective from January 1 to September 30, 2025, the measure provides a 15% increase on gross pay for night work and overtime performed on holidays.

This incentive, exempt from income tax and social security contributions, aims to promote job stability and address labor shortages in the tourism sector. Eligible employees must meet the criteria defined under Article 5 of Law No. 287/1991 and comply with the specified timeframes.

Employers will pay the supplement directly through payroll, with the possibility of recovery via a tax credit. The amounts must be reported in Form 770 and included in the annual certification. Employees must declare their eligibility and accept the supplement to qualify.

December 13, 2024
Remote Work – “Smart Working”
Labor Decree: New Deadline for Remote Work Notifications
“Labor Decree”

The Labor Decree addresses uncertainty regarding the deadlines for mandatory remote work notifications. Previously, Law 81/2017 required electronic notification to the Ministry of Labor about employees engaged in remote work but did not specify deadlines. Ministry FAQs suggested a 5-day term, but this lacked legal standing.

The amendment establishes a 5-day legal deadline for notifying the Ministry electronically, specifying the start and end dates of remote work. Failure to comply or late submissions will incur an administrative fine ranging from €100 to €500 per affected employee.

The obligation to retain individual agreements for five years remains, ensuring compliance with collective agreements and the National Smart Working Protocol. Key agreement points include duration, performance methods, disconnection times, and monitoring measures while respecting privacy.

Priority access is guaranteed for employees with children under 12 or severe disabilities, protecting them against discrimination and linking compliance to gender equality certification.

December 13, 2024
Fixed-Term Employment
Seasonal Activities: Important Retroactive Clarification
“Labor Decree”

An authentic interpretation of Article 21, paragraph 2, of Legislative Decree 81/2015 expands the definition of seasonal activities to include periodic work surges and technical-production needs tied to seasonal cycles or served markets. This update applies to collective agreements signed before the law’s enactment.

Previously, seasonal work was defined by an outdated 1963 regulation listing activities like cork dampening or fish marination. The new definition broadens seasonal recognition to market-driven fluctuations, enabling fixed-term employment benefits such as exemption from overall duration limits, contingent quotas, and renewal justification requirements.

As an authentic interpretation, the rule applies retroactively, impacting ongoing contracts and disputes. Employers must verify compliance with applicable collective agreements.

December 13, 2024
Occupational Health and Safety
2024 Labor Decree: Updates on Health, Safety, and Medical Surveillance
“Labor Decree”

The Labor Decree introduces key updates to occupational health and safety regulations under the Consolidated Law 81/2008. Highlights include flexibility for mandatory medical exams after prolonged absences—competent physicians may issue fitness certifications without a physical examination.

The use of underground or semi-underground facilities is now allowed under specific safety conditions, such as adequate ventilation and lighting, with prior notification to the Labor Inspectorate.

Annual safety reports are now mandatory, and some obligations regarding identification badges at construction sites have been repealed. However, contractors and subcontractors must still provide workers with identification badges.

December 13, 2024
Resignations
From 2025, Absence Equals Resignation
“Labor Decree”

For employees abandoning their jobs without formally resigning, the new Labor Decree introduces a significant change. If an employee is unjustifiably absent for longer than the period specified in the national collective agreement (or 15 days by default), the employer may consider the employee resigned after following a specific procedure.

Employers must notify the National Labor Inspectorate, which may verify the information. Once notified, the employment relationship is deemed terminated at the employee’s initiative, bypassing the electronic resignation process. The employee may still prove their absence was justified.

This provision addresses loopholes left by the “Jobs Act,” preventing opportunistic behaviors, such as provoking dismissal to qualify for unemployment benefits (NASpI), which are unavailable for voluntary resignations.

December 13, 2024
Self-Employment and Employment Contracts
Hybrid Contracts and Flat Tax Regime: More Flexibility for Professionals
“Labor Decree”

The Labor Decree introduces significant changes for freelancers and self-employed workers, revising flat tax applications for hybrid contracts. These allow combining part-time employment with freelance work.

Highlights include:

  • Exception to Exclusion Criteria: Professionals registered in orders or registries can access the flat tax regime even when working for employers with over 250 employees, provided certain conditions are met.
  • Hybrid Contracts: The flat tax applies to individuals working part-time (40%-50% of full-time hours) while conducting freelance activities with a VAT number.

To prevent misuse, freelance contracts must be certified by authorized bodies, ensuring a clear distinction between employment and freelance work.

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