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Matteo Renzi's Jobs Act

Here is how Italy is planning to reform the job market

Matteo Renzi's Jobs Act

Claudia Astarita

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The Italian government has defined the main points on how to reform the job market. The law is still at its first stage. In the next six months the government will ask permission to independently legislate on the single articles. The two chapters and six articles composing the law summarize five main point of the reform, which aims at protecting the interests of both the employer and the employee.

It includes the introduction of a new type of permanent contract that entails growing tutelage for the worker, according to his or her seniority. If the employee were to be dismissed with no justification during the first three years of employment, he or she would not have the right to be integrated back into the company, but only entitled to compensation.

The reform also includes redefining minimum wages and social security cushions. In particular, the paper work for the unemployment insurance will be reduced and this tool can be used only after having tried other cost-cutting policies, such as reducing the number of working hours.  The act is designed to protect female workers as well, by extending maternity leave support to all categories of workers and also by increasing the number of places available in nurseries.

To conclude, the act aims at establishing a national employment Agency that takes care of handling social security cushions and reintegrating unemployed workers in the productive system. The government will discuss all the above-mentioned points with the social institutions, such as the trade unions to ensure integrity and satisfaction across all parties involved. It is likely that the changes suggested by Premier Renzi's government will be implemented and transformed into laws during the year of 2015.

Jobs Act's detractors say that "Renzi has pledged to enact reforms that tackle Italy's growth and productivity crisis. But his 'flexible'  labour reforms - which will allow employers to fire workers on the payroll for three years without justification -   will do nothing to reverse the backwardness of Italy's economy". On the contrary, the Italian Minister of Economy and Finance believes that the bill will "accelerate the benefits of the economic recovery in terms of job creation."

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