Italy Passed Law Targeting Temporary Work Contracts, Companies Shifting Abroad

temporary work contracts

The Senate of Italy on Tuesday has passed a verdict for controlling the temporary work contracts and companies shifting abroad. This is the first significant ruling passed by the government for controlling the temporary job contracts and for fining the firms shifting their production units abroad.

Since the 1st of June the anti-government 5-star movement has been ruled with the right-wing League. Job security was the election campaign cry of Luigi Di Maio—the Labour Minister and also the leader of the 5-star movement.

The packages of steps that Di Maio mentioned includes a ban on the advertisement of all kinds of gambling, which according to 5-star causes hurt to the financial situations of the families and also targets the weakest members of the society.

The upper house has approved the verdict, which was drafted in the month of July, by one hundred and fifty-five votes to one hundred and twenty-five votes. The decree has already been passed by the Chamber of Deputies and so now has attained the status of law.

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The ruling targets to meet the Di Maio’s campaign assurance to halt the abuse of temporary contracts following the law passed by the ex-Prime Minister—Matteo Renzi to liberate their use.

For discouraging such contracts or agreements, the package rises the costs for companies that makes use of them and decreases the number of times these contracts could be renewed from a maximum of two years from previous three years.

Majority of the employers’ associations of Italy, which makes use of the temporary contracts extensively have criticised the alterations, which according to the opinion polls have got stronger support.

Di Maio after the Senate vote said that this is the first declaration for decades that is not dictated by the lobbies and bestowed interests. He added that finally the common people have scored a point by the approval of this decree.

Italy in the past years have repeatedly redrafted its hiring and firing rules as part of its attempts to shoot growth in the euro zone’s 3rd largest economy. However, the changes have not been successful in overcoming the “dual” labour market in which the older workers hired under the old, stubborn rules enjoy strong job security, while the younger people usually find only temporary job with some rights or advantages.

In twelve months to June 394,000 temporary jobs were created, as per the latest numbers, however the permanent contracts were denied by 83,000, as per the reports of Reuters.

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