Italy

1. Impact of Covid-19 in the workplace

We expect that continuing to manage the repercussions of coronavirus in Italy will prove to be the biggest challenge in the coming year. As people begin to receive vaccines, the hope is for a slow return to the office, and already different companies and different employers have taken varying approaches to employees’ return to the office. Health and safety protocols and policies will have to be reviewed and updated based on the evolving situation.

Additionally, the widespread furlough schemes that the Italian government implemented in spring 2020 will also wind down, although, under the recently approved 2021 Budget Law, employers meeting certain circumstances can take advantage of an additional 12 weeks of furlough funds. However, the government could certainly decide to extend furlough mechanisms well into the year.

Many companies took advantage of this form of support in order to save on employment costs, yet as the pandemic continues and the Italian state of emergency has been extended, these schemes look as if they will continue, although when they end we anticipate that there will be fast consequences in terms of increased individual and collective redundancies.

2. Redundancies

The Italian government banned dismissals starting in spring 2020. This meant that companies could not dismiss employees for financial reasons or reasons other than for just cause for serious or disciplinary matters.

This year, however, as furlough schemes begin wind down and as redundancies will once more be allowed after 31 March 2021, it is expected that there will be a dramatic increase in redundancies with all the related repercussions from an employment perspective. This is expected to cause much upheaval in the Italian employment scenario.

3. Cost-cutting measures

We also expect to see a peak in employers’ recourse to a wide variety of measures that will allow them to save on employment costs, particularly in sectors that have been the hardest hit, including retail, tourism and hospitality.

Measures to reduce and contain costs will likely result in changes to contractual conditions, including reductions in hours, reduction and elimination of benefits and bonuses, and furlough. These changes will require negotiations and discussions with employees, company trade unions and national trade unions.

4. Remote working arrangements

The Italian government issued facilitated rules in spring 2020 concerning remote working arrangements that, given the ongoing emergency situation, temporarily allowed employers to sidestep the normally more complex process to implement remote working policies.

The employment scenario in Italy, like in much of the world, has likely shifted permanently, and while a gradual return to the workplace is expected, many employers are likely to continue to have employees work remotely part of the time. This will require companies to draft policies in order to ensure that their arrangements comply with local laws and ward off potential employee claims.

5. Employee wellbeing and mental health

Another issue that we are expecting to deal with a great deal this year is employee wellbeing and mental health. As the pandemic continues, related stress, burnout and mental health issues are increasing and are expected to be more closely monitored by employers.

This will likely lead to many employers choosing to address health and wellbeing more than ever before. How this will be implemented and to what extent – e.g. through doctor’s/psychologist visits, health and wellbeing packages, remote working policies, childcare – remains to be seen.