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Europe - Italy
Employer Action Code: Act
Employee benefits and pension regulations modified
New regulations passed recently will require employers to revise the amount of benefits they pay their employees. The laws, which modify working time specifications, resignation procedures and phased pension payments, aim to cut bureaucracy and simplify procedures.
Key Details
The main provisions are as follows:
- Overtime payments for those with an annual wage of EUR 30,000 (USD 44,313) or less will be taxed at a lower rate for a trial period of six months, starting July 1, 2008.
- Employees will no longer need to submit a form with 15 days notice to the Ministry of Labor to resign from their jobs, but can simply give notice in writing or orally to their employer.
- Contracts for short-term employment and training have been reintroduced; training contracts can now last for any period of time, instead of to an enforced minimum of 24 months as before.
- Every employee must be enrolled in a recently created “Labor Book,” which will substitute payroll and matriculation books.
- Direct payments to health services made by the employer can be deducted from health insurance obligations.
- Employees at the retirement age will be eligible to receive their full monthly pension in addition to their salary, starting January 1, 2009. Previous legislation granted workers over the retirement age the minimum pension plus 50 percent of the difference between their entitled pension and their salary.
August,
2008
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