Italian Expansion Contract strengthened

expansion contract

With the recent italian ‘Sostegni Bis’ Decree (art.39, DL 73/2021) the expansion contract is further strengthened (art. 41 DLGS 148/2015).

Exclusively for 2021, the minimum limit of workforce required to be able to use the expansion contract is reduced to 100.

The number of units also drops to 100 for cases in which a program is provided for workers closest to retirement age (within 5 years).

The employer, by granting the worker a monthly allowance for the entire period until the first effective date of the pension is reached, can terminate the employment relationship.

The consent and non-opposition of the worker is of course required.

Not decisive but certainly an extremely useful tool for the management of resources with a view to restructuring and renewal, even in the validity of the redundancy block.

Allavelli Legal