Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure IT-1982-22/2607 – measures in Italy
Country | Italy , applies nationwide |
Time period | Open ended, started on 29 May 1982 |
Context | COVID-19, Restructuring Support Instruments |
Type | Legislations or other statutory regulations |
Category |
Employment protection and retention
– Income support for people in employment (e.g., short-time work) |
Author | Lisa Dorigatti (University of Milan) and Eurofound |
Measure added | 23 June 2022 (updated 16 September 2024) |
Preceded by European Council Directive 80/987/EEC on the protection of employees in the event of the insolvency of their employer, Wage Guarantee Fund for labour related credits was established by Article 2, Law No. 297 of 29 May 1982, to guarantee severance payment in case of insolvent employer.
The aim is to protect the credit of employees whose employer is subject to insolvency or enforcement proceedings.
'Fondo di Garanzia’, administered by the National Institute of Social Security (Istituto Nazionale della Previdenza Sociale, INPS), pays unpaid remunerations related to the last three months of the employment contract as well as the severance indemnity (the so-called ‘Trattamento di Fine Rapporto’, TFR) to employees, apprentices, industrial firms’ management and members of cooperatives whose companies are unable to pay, since they are declared insolvent or part of an enforcement proceeding.
The conditions to apply for ‘Fondo di Garanzia’ are the termination of the employment relationship, the ascertainment of the worker’s credit by a court, the existence of insolvency or enforcement proceedings against the employer, and the employer’s state of insolvency. As for the last three wages, the maximum amount paid is equal to three times the amount of the ‘Cassa Integrazioni Guadagni’ (CIG) treatment, net of social security contributions. Interest and monetary adjustment are also added to the due sums.
‘Fondo di Garanzia’ intervenes even if the employer has failed to pay social contributions. Workers, in the event of insolvency proceedings, may request unpaid social security contributions to be considered as paid. Moreover, INPS intervenes also in case the employer fails to pay contributions to a supplementary pension fund.
‘Fondo di Garanzia’ is financed by employers’ contributions. Payments to workers are independent from whether or not employers have paid contributions.
In 2024, the maximum net monthly amount for CIG is the following:
Less than €1,425.21, the allowance will be 75% of the monthly salary. More than €1,425.21, the allowance will be 75% of €1,425.21 plus 25% of the excess amount, with a maximum limit of €1,550.42.
On 1 April 2022, the INPS announced to the public the new service for the transmission of telematic applications for intervention by the Guarantee Funds for severance pay and work credits and the Supplementary Pension Position Guarantee Fund.
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
|
Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
Trade unions Employers' organisations |
Employers organisation
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Unknown | Unknown |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
Unknown
Unknown
Citation
Eurofound (2022), Wage Guarantee Fund for labour related credits, measure IT-1982-22/2607 (measures in Italy), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/IT-1982-22_2607.html
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