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Social safety nets

When it comes to crisis, companies often talk of social safety nets, a series of measures aimed to provide financial support to workers. To get out of a period of critical economic and financial conditions, for a company it is important to contextualize the difficulties analyzing the company and assessing future opportunities, for an eventual recovery. These measures are more and more used by the companies to reduce labor costs while safeguarding employment in a period of crisis.

 

Layoffs and mobility

The layoff is a major social safety net provided by the law. It provides, with the recognition from the INPS, an amount of money for the workers affected by work reduction or suspension.

It distinguishes between Ordinary Layoffs, Extraordinary Layoffs (including the Solidarity Contract) and services provided by the Solidarity Funds.

The Ordinary Layoffs (CIGO) is essential for workers of the industrial and construction sectors, who have suffered a reduction or suspension of work due to temporary market and economy situations, not attributable to the company or to the employees.

The Extraordinary Layoffs (CIGS) consists in paying a compensation to workers whose activity was suspended or reduced directly by the employer as a result of a reorganization or of a corporate crisis.

This type of layoffs also provides defensive solidarity contracts, agreements set between the company and the union representatives, aimed to reduce the working hours but maintaining the employment.

If it’s not possible to activate the social safety nets examined above and the company is obliged to dismiss corporate staff, two social safety nets can help workers, both economically and for a possible re-occupation, these are the NASPI and the mobility allowance (the latter until 31/12/2016).

New Social Safety Nets

With D.Lgs.148 / 2015, from September 24, 2015, the new reform on social security nets came into force.

In addition to the redesign of the presentation and expected duration of Ordinary and Extraordinary Layoffs, the legislative decree has provided to the sectors not covered by CIGO or CIGS, the Solidarity Funds (bilateral, residual and Salary Supplement Fund) in order to ensure the delivery of benefits and extraordinary allowances even in excluded firms.

Together with the entrepreneur, the Labour Consultant can recommend the organizational and strategic actions to take, and activate one or more appropriate social safety nets in order to address the difficult period.

For more information, book your appointment, we will be happy to help you.

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