HR Consultancy

Temporary worker maximum pay limits revised

INPS has announced new monetary limits for temporary workers, to be revised on a yearly basis. Vouchers represent a pay system for temporary workers i.e. those workers who do not have a standard employment contract and do bespoke temporary work. 

For 2014, the maximum pay which can be paid under such an arrangement is €5,050 net (€6,740 gross) during the calendar year (including where there are more than one employer.

If a temporary worker works for more than one employer, the limit is €2,020 net (€2,690 gross) for each employer.

Moreover, up to 31 December 2014, workers receiving redundancy payment can supplement their income up to a maximum of €3,000 net as payment to temporary workers from more than one employer.

Inps, Circular Letter no. 28, 26 February 2014

Law dated 28 February 2014, no. 15

Trade Sector: agreement on bilateral agreements governance

On 20 February 2014 the Trade Unions (Confcommercio, CGIL, CISL and UIL) signed an agreement on bilateral agreements governance and functioning of institutions and bilateral funds of the trade sector.

Health and Safety in the workplace

For very small (less than 10 employees), small (less than 50 employees) and medium-sized (less than 250 employees) enterprises, the voluntary adoption of a model of organization and management of health and safety in the workplace (MOG) has been made more attractive. The adoption of MOG will exempt the enterprises from being held liable for the administrative consequences arising from the offences set out in article 25 septies of Legislative Decree no. 231/2001 (manslaughter or serious or very serious bodily harm resulting from a breach of safety regulations).

Decree of Labour Ministry, dated 13 February 2014

Public Procurement

Signature requirements for a technical offer

Lack of signature of each page of a technical offer cannot cause the exclusion of the bidder from a public tender, unless such formal requirement is expressly set out under the provisions of the call for bids. In the case at hand, the legal representative of the bidder signed and stamped the list of contents of the technical offer and the first page of each of the documents attached thereto. The call for bids did not require specific signature formalities. Thus, the technical offer was held valid.

Supreme Administrative Court, 20 February 2014, no. 802

Financial services dispute resolution

An interest rate swap contract was declared null and void for lack of causa

An interest rate swap contract has been declared null and void for lack of causa (under Italian law, causa is the commercial rationale of a contract and is an essential component of the contract) due to the fact that the risks of entering into the contract were not fully explained to the client. 

The bank, before entering into the contract, should have explained to the client how the swap contract was going to hedge the client from the risk, in particular by disclosing (i) the cost structure, including direct costs and the intermediary’s margin; and (ii) the risks assumed by both parties. 

This decision reinforces the approach introduced by the Court of Appeal of Milan in case no. 3459/2013 regarding the absolute necessity of appropriate understanding on the client’s part (in this case a retail client) about the extent of the risk assumed when entering into a swap. 

Court of Turin, 27 January 2014

Litigation and dispute management

Organization of the Italian Courts

A Legislative Decree has been passed to coordinate recent legislative amendments to the organization of the Italian Courts (including their geographical location). To read the full text of the Decree at hand please click here.  This bill is effective starting from 28 February 2014.

Legislative Decree dated 19 February 2014, no. 14 

Official Gazette, General Series, dated 27 February 2014, no. 48

Competition, EU and regulatory

European Commission adopts new guidelines on State aid to airports and airlines

The new guidelines are part of the Commission’s State Aid Modernization strategy and are intended to replace both the 1994 and 2005 aviation guidelines. The guidelines specify the conditions under which the public financing of airports and airlines constitutes state aid within the meaning of Article 107 of the TFEU. In such a case, the guidelines set out the conditions under which the public financing is compatible with EU law. Key features are: investment in airport infrastructure; operating aid to regional airports; start-up aid to airlines. It stands out that the possibilities to grant aid are higher for smaller airports than larger ones, start-up aid to airlines to launch a new air route is permitted, provided it remains limited in time. The formal adoption of the new guidelines is foreseen for March 2014.

European Commission - IP/14/172 - 20 February 2014

Environment

New Environment Minister appointed

Gianluca Galletti has been appointed Environment Minister. In his opening statement, Galletti stressed the need to deal with Italy’s hydrogeological issues. Galletti has made it known that he believes he has the necessary skills to bring about the changes needed to improve the environmental issues facing Italy at this time. Initial comments from political observers indicate that there will be a change in direction in environmental policy. Watch this space.

As you were: Law on household renewable energy targets as originally envisaged

The Five Star Movement and the Left Green Party have amended the bill concerning the use of renewable energy technology in the construction or refurbishment of homes. The proposal is that 35% of heating, electricity and cooling for new homes or works carried out between 1 January 2014 and 31 December 2016 will have to come from renewable energy sources. The bill now passes to the Senate for final approval.  From 1 January 2017, the percentage rises to 50%.

Tax planning and consultancy

Losses on receivables

Losses on receivables are deductible from corporate income if there are certain and precise elements and if the debtor is subject to bankruptcy proceedings or has entered into an agreement to restructure the debt. 

Following the introduction of Law no. 147/2013, the certain and precise elements also exist in case of cancellation of receivables in the financial statements in accordance with accounting principles adopted. In this case losses can be deducted without having to prove anything.

Section 101, para. 5 of Italian Direct Taxes Code 

Law dated 27 December 2013, no. 147

WEB Tax

On 28 February 2014 the Council of Ministers approved a Law Decree containing emergency measures on various subjects. 

Of note is the repeal of the "Web tax" introduced by Art. 1 para. 33 of Law no. 147/2013.