On 13 July 2018, the Italian Government passed the “Dignity Decree,” which was converted into law No. 96/2018 on 11 August 2018. The key changes include:
The maximum length of fixed-term contracts decreased from 36 months to 24 months with a maximum of four instead of five extensions within that period. The contract becomes open-ended at the fifth extension.
The unfair dismissal minimum indemnity for employees hired after 7 March 2015, increased from four to six months’ salary, while the maximum indemnity increased from 24 to 36 months’ salary.
Italian and international companies that received state aid and relocated outside the European Union before a five-year period will be obligated to return the aid and pay between two to four times the state aid amount.