In a new effort to contain the impact of the health crisis on the job market, on October 30, the Italian government announced an extension of the ban on dismissals (which would have expired on January 31, 2021) until March 2021.

Concurrently, employers could continue to apply for Ordinary Wage Guarantee Fund coverage (Cassa Integrazione Guadagni Ordinaria – “CIGO”) for a period of up to 12 supplementary weeks, until the end of March 2021.

This announcement came two days after the adoption of the Ristori Decree (Legislative Decree no. 137 of October 28, 2020) which provided, among other things, a freeze on layoffs until January 31, 2021, linked to a further 6 weeks of wage integration coverage for the COVID-19 emergency. The six weeks must be in the period between November 16, 2020 and January 31, 2021.

Executive-level employees remain excluded from the ban on dismissals.

Moreover, the ban on dismissals does not apply in the event of:

  • companies that have gone out of business;
  • companies that have gone bankrupt when renewed business activity is not foreseen;
  • workers who have accepted a company-union agreement providing incentives for the termination of the employment relationship.

For private employers, who do not request wage integration, the Ristori Decree provides for an exemption from the payment of social security contributions, for a maximum period of 4 months, until January 31, 2021.