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I-ii.5 Redundancy of workers
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3.2.5.I-ii.5 Redundancy of workers
(Mobilità dei lavoratori)


3.2.5.1. Aim

To facilitate the vocational reintegration of surplus workers when companies themselves are unable to guarantee the conti-nuati-on of the employment contract.

3.2.5.2. Legal basis

  • - Law 223 of 24.7.1991;
  • - Decree 478 of 11.12.1992;
  • - Decree 148 of 20.5.1993, converted into law 236 of 19.7.1993;
  • - Law 608/96 (Art. 4).

    3.2.5.3. Contents

    There are two possibilities for mobilising (laying off) workers: 1) in companies with more than 15 employees; 2) in companies which are entitled to extraordinary benefits from the Wage Compen-sa-tion Fund and which do not intend to re-employ any or some of the redundant workers after receiving the benefit.

    The following categories of employees may be registered in the "mobility lists":

    a) blue-collar workers, white-collar workers and lower-level managers (quadri) who have become unemployed due to personnel reductions, company conversion or company closure;

    b) blue-collar workers, white-collar workers and lower-level managers (quadri) who have been laid off by companies which are receiving extraordinary benefits from the Wage Compensation Fund and which are not in a position to guarantee employment for all the redundant workers;

    c) outworkers who have been laid off due to personnel reductions.

    The following categories of employees may still be registered in the lists:

    1. Employees entitled to special unemployment benefit who were benefiting from the extension measures in connection with an economic crisis in the sector, region or company on 11 August 1991; likewise employees made redundant by enterprises operating in the Mezzogiorno who are also entitled to special unemployment benefit.

    2. Construction workers employed in the construction of industrial plants or large-scale public works in regions in which a severe employment crisis has been identified by ministerial decree due to the impending completion of such building activities.

    3. Construction workers who have been in receipt of extraordinary benefits from the Wage Compensation Fund and can prove tenure of at least 36 months, of which they actually worked 24 months. Where these workers were made redundant before 31 December 1994, their dura-tion of registration on the "mobility list" may be extended, because their special unemployment benefit falls under the regulations on "long-term" mobility (redundancy).

    4. Workers already employed on 1.1.1992 or 1.1.1994 and employees in firms in the international haulage and storage sectors and in haulage firms listed in the trade register who were made redundant in 1993 due to the abolition of customs barriers and controls in the Single European Market at the end of 1993 or 1995.

    5. Employees (including administrative staff) in the marine transport sector (including port transport) who were made redundant prior to the end of 1996.

    6. Blue-collar workers, white-collar workers and lower-level managers (quadri) made redundant prior to 31.12.1997 by enterprises, craft firms or producer and worker cooperatives, even where they employ less than 15 workers, provided that this is justified objectively within the context of reduction, conversion or termination of economic activity or work.

    7. Workers who were employed in socially useful work and at the same time in receipt of special assistance.

    8. Workers who were in employment until 31.12.1995, even if they were not carrying out socially useful work or were not employed in non-operative GEPI or INSAR companies, and workers specifically provided for by law whose entitlement to redundancy compensation or special unem-ployment benefit would have expired on 31.12.1994 or whose benefits from the Extraor-dinary Wage Compensation Fund would have expired between 1.12.1994 and 31.5.1995.

    9. Workers who were employed between 1.1.1996 and 31.12.1997 in official refuse dumps, now closed down, in regions declared to be in a state of emergency.

    Workers not necessarily in receipt of redundancy allowance may also be registered on "mobility lists". Likewise, workers in receipt of special benefits may be registered, for instance workers in inter-national haulage firms who are receiving specific aid; these remain on the lists for the dura-tion of their entitlement.

    Workers registered in the "mobility lists" and entitled to the appropriate benefits may also apply for the statutory vocational training allowances; they remain registered in the list.

    The provisions accord priority to listed workers when the employer recruits workers with the same qualifications, and also offers incentives to employers recruiting listed workers.

    If the permanent recruitment takes place without the right of priority applying from which former members of the work force benefit under the terms of the law, the employer has the right to a contri-bution equal to 50% of the redundancy allowance which would be paid to the person hired and this during a period of 12 months which may be extended to 24 months if the worker is older than 50 years of age and to 36 months if he/she resides in the Mezzogiorno.

    The worker is struck from the "mobility list" if:

  • - he/she refuses to enrol in a vocational training course;
  • - he/she does not accept an offer of employment which is equivalent from a vocational point of view;
  • - he/she does not accept employment in a public works or service area;
  • - he/she does not communicate to the INPS any services carried out either part time or on a fixed-term basis.

    An employee is removed from the "mobility list" in the following cases:

  • - if he/he is recruited under a full-time employment contract (Art. 9, § 6 a, Law 223/91);
  • - if he/she takes advantage of the option of receiving the redundancy allowance as a lump sum (Art. 9, § 6 b, Law 223/91);
  • - if, in the case of a worker without entitlement to the redundancy allowance, the period for the main-tenance of the listing has expired (Art. 4, § 2, Law 236/93);
  • - if he/she refuses to take part in a vocational training course approved by the regional authorities or fails to attend regularly such a course (Art. 9, § 1 a, Law 223/91);
  • - if he/she rejects a job offer that is "of equal value" in occupational terms or whose remuneration is no more than 10% below that of the activity previously performed by the worker (Art. 9, § 1 b, Law 223/91);
  • - if he/she is unwilling to take part in community work or services (Art. 14, § 3, Law 451/94);
  • - if he/she fails, without due cause, to attend the provincial or regional employment office on request (Art. 9, § 1 d2, Law 223/91 in the amended form under Law 451/94, Art. 2, § 3);
  • - if the period of entitlement to redundancy benefit or redundancy allowance has expired (Art. 9, § 6 c, Law 223/91);
  • - if he/she fails to inform the local INPS branch of work performed, even on a part-time and/or temporary basis.

    Workers recruited from the "mobility list" on a full-time basis and on a permanent contract, but made redundant before the end of the probation period, can only be re-registered in the list twice.

    3.2.5.4. Financial resources

    With the exception of firms in the construction sector, employers must pay a fixed contribution to finance the mobility allowance. This amounts to 0.3% of the wages and salaries used as a basis for calculating contributions to the unemployment insurance fund. During the first 12 months the employee is to pay the same contribution rate applying to trainees on his/her mobility allowance (Art. 21, Law 41/86); in 1994 this amounted to 5.4%

    3.2.5.5. Institutional support

    Companies which do not consider themselves able to rehire part of their work force may choose to start, as has been said, mobility procedures.

    In the first place, they must notify this decision in writing to the company trade union representa-tives as well as to their category industrial insurance board indicating the reasons, the number of sur-plus personnel, the timetable for achieving the programme and any measures intended to cope with this situation.

    Copies of this notification must be sent to the INPS (registration on the list is as of the day after dismissal), the competent regional labour office and, if more than one region is concerned, to the Ministry of Labour. The company and the trade union representatives will together study the possible solution(s). Once agreement has been reached with the trade unions, or the procedure fixed by law has been carried out, the company is authorised to lay off the surplus personnel, notifying each worker in writing of the dismissal. At the same time, it notifies in writing the list of redundant ("mobile") workers, with detailed information, to the competent regional labour office, to the regional commission and the industrial insurance board.

    The regional labour office then ensures that the said workers are registered on the above-mentioned "mobility lists". The payment of redundancy allowance is entrusted to the INPS.

    Workers laid off due to personnel reductions or closure by companies with less than 15 employees - which are not obliged to comply with the mobility procedures - must submit to the local (district) employment office for the region a formal application for registration on the "mobility list" within 60 days of their dismissal. The date of redundancy is the date on which the employment relationship actually ends, because unemployment is the main prerequisite for registration on a "mobility list".

    3.2.5.6. Duration

    No time limit has been imposed on these provisions

    3.2.5.7. Results

    On 31.12.1994, 294,491 workers were registered in the "mobility lists"; of these 3,617 re-entered employment during the course of the same year.

    On 30.9.1996, 237,495 workers were registered in the "mobility lists"; of these 140,450 were men and 97,045 women.


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