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1. Social Safety Net (art. 19 – 22 of the Law Decree)
The Law Decree provides for a number of Social Safety Net: (i) Standard Layoff Fund, (ii) Special Layoff Fund and (iii) Wage Integration Fund.
The basic difference between each of them is about the activity carried on by the company and the number of employees.
However, the substantial content of each measure is the same:
• They apply to workers employed on the date of 23 February 2020 (no minimum effective work is required);
• Maximum period of use: 9 weeks to be used from 23 of February 2020 to 31 August 2020;
• The amount paid to employees is equal to 80% of the global salary due with reference to the unused working hours with the some specified caps in the amount payable;
• No additional contribution by the company is required;
• Benefit applies to all Italian companies;
• Funds are limited: first come, first served.
→ The Social Safety Net applied according to the Law Decree is to be added to the special layoff fund provided by article 17 of the law decree no. 9/2020. Therefore, if a company operates in Lombardia, it can benefit of a further 1 month to be used in addition to the 9 weeks mentioned above: article 17 limits the benefit to cases where evidence of a prejudice suffered by the company exist, but a statement given by the legal representative of the company should be enough.
2. Allowances, leave and permits for certain categories of workers (art. 23 of the Law Decree)
Any of each parent has, alternatively to the other, a right to a leave for a continuous or split period of no more than 15 days from March 5, 2020, with an indemnity equal to 50% of the salary in case they have children up to 12 years of age.
As an alternative to the use of the mentioned leave the Law Decree provides for the possibility to opt for the payment of a bonus for baby-sitting services within the overall limit of 600.00 Euros. Furthermore, the Law Decree increases the number of days of paid monthly leave envisaged by the Law n. 104 of 5 February 1992 (a law aiming to support employees assisting disabled relatives) with additional 12 days (for a total of 15 days per month) for March and April 2020.
Parents with children aged between 12 and 16 have a right to leave for the time of suspension of the educational services for children and educational activities in schools, provided that in the family unit there is no other parent receiving income support benefits or a non-working parent; during the abstention: (1) there is no right to compensation; (2) there is a ban on dismissal and there is a right to job retention.
3.Other provisions of interest to companies
The Law Decree provides for additional provisions of interest to companies, here outlined as follow.
• Article 26 (Urgent measures regarding the period of active surveillance of employees in the private sector): the period spent in quarantine for workers in the private sector is treated as sickness;
• Article 42, paragraph 2: ascertained cases of Covid – 19 infection during work qualify as an injury to be indemnified by INAIL (the National Insurance for Injuries suffered at Work);
• Article 39 (Agile work provisions): disabled workers or who have a person with disabilities in their family has a right to “smart working”, if compatible with the characteristics of the job performed; employees affected by serious and proven pathologies with reduced working capacity can file with the employer a request for “smart working” which is assessed and accepted with priority;
• Article 43: (Contributions to companies for the safety and enhancement of health facilities): contributions are provided to companies for the purchase of devices and other personal protection tools;
• Articles 61 and 62: Payments to public administrations have been postponed to March 20, 2020, including those relating to taxes, social security and compulsory insurance expiring on March 16, 2020, with no penalties or interest. However, companies with a turn over within 2 million euros in 2019, may postpone such payment to May 31. With specific reference to VAT, regardless of the turnover, payments due between 8 of March and 31 of March are postponed to 31 of May 2020 in one or up to five instalments, if the company has registered company in those identified as “red zones”.
• Article 63: (employee bonus): for employees with a total annual income within 40,000 euros in the 2019, a one-off bonus of 100 euros is granted in March 2020, or proportionally to the effective working days carried out in the month. Such bonus is not taxable for the recipient. The employer pays the bonus with the salary paid in April. After payment the employer has a tax credit for the same amount paid to the employee;
• Article 64, with reference to tax period 2020, provides for a tax credit in the amount of 50% of the costs of sanitizing offices and work tools up to a maximum amount of 20,000 euros for each beneficiary. Such tax credit aims to encourage the sanitation of the workplace, as a preventive measure to contain the infection of the COVID-19 virus.
• Article 57 provides for a support to the liquidity of companies affected by the outbreak through mechanisms of warranty: Cassa Depositi e Prestiti S.p.A. (CDP) has been authorized to support liquidity of companies that have suffered a reduction in turnover due to Covid-19, by securing the loan requested by such companies. This measure allows (i) banks, with the support of CDP, to more easily give loans to companies that have suffered a reduction in turnover due to the emergency, (ii) CDP, to support banks through guarantees on bank loan portfolios, also of so-called first loss, or guarantees on individual bank loans (“loan by loan”) and (iii) State to grant “counter guarantees” in favor of CDP up to a maximum of 80% of the exposure assumed.
