Corona Virus: Implications for Italian Staff

The Corona virus raises many questions and uncertainties. What consequences does the COVID-19 have for your Italian staff? Every country has their own measures regarding the Coronavirus. We monitor the situation and have put all information together per country. If you employ people in Italy, the information below might help you with managing your Italian staff.

*The information in the blog has the purpose to help the reader with gaining more knowledge and insights on the measures taken by the government. Please keep in mind that we have outlined basic rules. There might be specific terms, rules and regulations to each measure. As a result, EuroDev cannot guarantee any reimbursements or liabilities. For more detailed information, please contact our experts.

Measures set by the government *Last updated 24 March 2020

As of April 15: 165,155 total corona cases in Italy.

GDP is predicted to fall by 9.1% in 2020 (IMF). From 14th April bookshops, stationers, baby clothes shops and dye works will reopen. Some agricultural and forestry activities such as logging, oil and coal extraction and some companies including the textile industry will also reopen. These activities will have to ensure safety in the workplace. 

If there are changes before the 3 May deadline, the government may decide to speed up the reopening. 

In the "Cura Italia" decree, support of €25 billion to address the corona emergency. Latest measures:

• Blocking of layoffs for two months, regardless of the number of employees. Disciplinary dismissal remains
• A premium of € 100 for employees with incomes of up to € 40,000 in the company (not in smart working), to be compared to the number of working days at the headquarters.
• Compensation of 600 euros, on a monthly, non-taxable basis, for self-employed workers and VAT numbers

Italy is the most affected country in Italy which is why from the 9^th of March, the government imposed national quarantine to avoid the spread of the virus even more. All commercial and retail businesses except those providing essential services, like grocery stores and pharmacies, closed down.  

At the moment, this is the financial aid the government is offering to help out businesses:

• Paid layoff (CIG): 9 weeks – 80% of normal working time
•   *600 euros for baby-sitter
• Paid leave (50%) for parents
•   With children under 12: a total of 15 days to be divided between father and    mother
• No age limit in case of children with disabilities
• Self-employed: 500$
• Quarantine considered as sick leave (public firms) 
•   *50% of sanitation costs paid by the Government (up to 20,000 euro) 
  
  Bonus read: Getting Your Business Back in Shape

FAQ Italian employment during Coronavirus

Can I fire my European staff?

Although there are special measures taken, the normal termination laws still apply. 

Do employer-instituted quarantines or temporary shutdowns or mass layoffs entitle workers to unemployment benefits or severance?

If a company shuts down operations based on a government mandate or due to a significant loss of business, the company may lay off the employees without pay.  In such cases, companies may access a social “safety net” to help them pay salaries to the employees.  Access to such welfare programs requires working with the unions.  

What to do if one of your employees is infected by corona virus?

If an employee is absent because he/she has been infected by corona virus, rules governing sick leave apply. If an employee is not sick but in quarantine as a result of an order of the public authorities (e.g. in the so-called “red zone”), this is considered impossibility of performance or force majeure. Consequently, both the employee and the employer are freed from their respective obligations — the employee from performing working activity and the employer from the obligation to pay remuneration. For more details, we recommend you get in touch with Monique Ramondt, VP of HR Outsourcing by clicking the image below: