Following last week’s “Cure Italy Decree”, containing support measures for businesses impacted by Covid-19 (more on this decree here), the Italian Social Security Institution, INPS, and Regional Authorities around Italy have now issued instructions on how to present applications for various social shock absorbers, known in Italian as Cassa Integrazione Guadagni Ordinario (CIGO), Assegno Ordinario (FIS) and Cassa Integrazione Guadagni in Deroga (CIGD).
Below you will find a brief summary of the instructions and guidelines now in place. Access to these social shock absorbers is heavily regulated and complex to navigate. Our attorneys (contact details at the end of this newsletter) are available to assist: please do not hesitate to contact them.
For CIGO and FIS, the Italian Social Security Institution clarified the following (see official note, in Italian, here):
- Applications for CIGO and FIS related to Covid-19 will be filed via an online application form, containing (among other things) a list of employees who will access the salary support measure;
- FIS will be granted to employers who are enrolled with the FIS Fund and employ on average more than 5 employees;
- Applications can be presented within 4 months from the time of suspension or reduction of work (additional provisions apply for suspension or reduction of work that took place between February 23 and March 23);
- CIGO and FIS will be granted for a maximum of 9 weeks in the period running from February 23, 2020 to August 31, 2020;
- All employees in force as of February 23, 2020 will be able to benefit from these salary support measures;
- No payment is due by the employer to access these social shock absorbers.
Instead, concerning CIGD, that is managed on regional basis, a set of national and regional rules apply.
National rules applicable to the entire territory of Italy:
- CIGD is granted regardless of the number of employees employed.
- A simplified consultation with the unions, that can take place via audio-video conferencing, must be carried out by employers who employ 5 or more employees; below 5 employees, consultation is not required.
- CIGD cannot be accessed by employers who can use a different social shock absorber like CIGO or FIS;
- Applications for CIGD are presented at regional level, based on where the employer is located. If an employer has business units in 5 or more regions, one application for all regions can be filed to the Italian Ministry of Labour.
- Safe for different provisions enacted at regional level, salary support under CIGD will result in the payment of an indemnity equal to 80% of the employee’s overall salary; certain limits and ceilings apply. Payment of the indemnity is made directly the Italian Social Security Institution.
- CIGD is available to all employees, with the exception of executives (dirigenti) hired after February 23, 2002
Regional Authorities are in the process of negotiating with Unions and issuing additional provisions that shall apply to CIGD.
Regional Authorities will be competent to receive and process applications for CIGD as per instructions and websites that are made available online by each Region.
As of today, the following Regions have enacted local provisions (by clicking on the name of the Region, you will access the related webpage in Italian):
Lombardia; Lazio; Veneto; Emilia Romagna; Toscana; Campania; Marche; Liguria; Puglia; Calabria; Sicilia.
Do not hesitate to contact one of our attorneys at Baker McKenzie for assistance.