Italy labor laws - Cassa Integrazione Guadagni

Briefing

Economic crisis bring up some usually hidden law mechanisms that can help companies to pass through hard times. Italy has a mechanism called Cassa Integrazione Guadagni that allows companies to temporary reduce labor costs.

However government has some kind of social security aid to laborers while company is in CIG.

Cosa é Cassa Integrazione Guadagni? (What is the Cassa Integrazione?)

In Italy, there is an instrument in the labor laws called Cassa Integrazione Guadagni (CIG), which consists in reducing the working hours of laborers.

The reasoning behind this instrument is to help companies experiencing temporary difficulties, so the companies can reduce the cost of idle manpower.

The CIG was first introduced in Italian labor laws in august 12^th of 1947.

The CIG can have two main formats:

1- Cassa integrazione guadagni ordinaria (CIGO)

The CIGO can be adopted in face of temporary difficulties that are not due to company or labor matters, most common as market problems.

It can last 13 consecutive weeks and a company cannot use the CIGO more than 52 weeks within 2 years.

While in CIGO, laborers receive money aid from the government.

2- Cassa integrazione guadagni straordinaria (CIGS)

The CIGS can be adopted in face of:

- company restructuring or reorganization

- in case of relevant sector or economic crisis

- company under proceedings such as bankruptcy filling

However, to adopt the CIGS the company has to:

- Have employed more than 15 laborers in the last 6 months in case of industrial, construction, contractors, restaurant and cleaning services companies.

- Have employed more than 50 laborers, excluding apprentices and formation contract employees, in the last 6 months in case of commercial, transportation, shipping, tourism and travel agencies companies.

- Be companies of private security.

The CIGS duration varies according to the reasoning of the request. So, according to each case it can last:

- 24 months in case of company restructuring or reorganization

- 12 months in case of relevant sector or economic crisis

- 18 months in case of company under proceedings such as bankruptcy filling

The CIGS and CIGO cannot last longer than 36 months within 5 years period.

While in CIGS, laborers receive money aid from the government.

Sources:

http://www.inps.it/

http://it.wikipedia.org/wiki/Cassa_integrazione_guadagni