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I-iii.4 Employment Fund
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3.3.4.I-iii.4 Employment Fund
(Fondo per l'occupazione)


3.3.4.1. Aim

To implement special measures of active, employment-maintaining labour market policy by the Ministry of Labour and Social Insurance in:

a) the areas defined under Objectives 1 and 2 of EU Directives 2052/88 and 328/88 and Law 181 of 15.5.1989 (support and reindustrialisation measures by means of the implementation of the restructuring plan for the steel industry);

b) areas suffering from a serious imbalance between labour supply and demand (Art. 36, § 2, Presidential Decree 616/77).

3.3.4.2. Legal basis

  • - Decree-Law 148 of 20.5.1993, converted into Law 236 of 19.7.1993 (Art. 1 and 1b);
  • - Decree-Law 299 of 16.5.1994, converted into Law 451 of 19.7.1994;
  • - Law 608/96;
  • - Law 30 of 28.2.1997 (on converting Decree-Law 669 of 31.12.1996).

    3.3.4.3. Contents

    It is intended to offer degressive incentives to employers recruiting full-time workers in addition to the work-force levels prevailing at the time the law comes into force. Public and private sector firms and cooperatives in all sectors of the economy are entitled to apply for the support, provided they meet the following sets of conditions: the firm

    a) is located in a region affected by a particularly severe crisis or active in a sector facing a structural crisis whose effects on the employment level are substantial;

    b) is affected by delayed development or by economic depression;

    c) is undergoing a process of restructuring, industrial conversion or industrial decline;

    d) is affected by a serious deterioration in social, economic or environmental situation or by a lack of esteem and defence of the historical or artistic heritage.

    Also entitled to claim are (public and private sector) enterprises responsible for implementing community and charitable projects lasting at least one year and which employ workers of the following categories:

    1. recipients of special unemployment benefit;

    2. workers registered for more than two years in category 1 of the placement lists;

    3. workers registered in the "mobility lists";

    4. employee categories selected on the basis of special decisions - approved by the Ministry of Labour - taken by the CRI (Regional Employment Commission).

    The measures described above are to be extended to cover initiatives to provide employment for disabled workers throughout Italy.

    Decrees issued by the Ministry of Labour are to define the following elements: the subjective requirements made of recruited workers, the forms on which to apply for the support, the con-di-tions and forms under which the benefit will be granted and the way in which the subsequent evaluation of the results is to be performed.

    The above-mentioned benefits may be combined with the benefits provided for under both Law 223/91 (Art. 8, 20 and 25) for lay-offs and reintegration contracts and Law 407/90 (Art. 8, § 9) for training-cum-work contracts.

    However, as far as the fund share (of a maximum of 10%) earmarked for young people setting up new enterprises is concerned, the legal entities listed in Article 1 of Law 44/86, namely corpora-tions, cooperatives, etc., are entitled to benefit (cf. Chapter III, I-vi.7).

    The fund share (of a maximum of 10%) is earmarked for young people setting up new enterprises in the following sectors: cultural heritage, tourism, maintenance of civil and industrial buildings in the Mezzogiorno regions and within the framework of domestic social services and care for the disabled and the elderly.

    3.3.4.4. Institutional support

  • - The Ministry of Labour and Social Insurance;
  • - The Association of Young Entrepreneurs (Società per l'imprenditorialità giovanile) (cf. Chapter III, I-vi.7, "Promotion and development of the creation of companies by young people").

    3.3.4.5. Financial resources

    The Employment Fund is used to support various labour market policy measures, such as job-security agreements and aid towards socially useful work. Law 608/96 provided for an increase in the size of the Fund by ITL 669 billion in 1995, ITL 685.6 billion in 1996, ITL 591.3 billion in 1997 and ITL 691.3 billion for 1998. These resources are primarily used to finance socially useful work and also schemes for the vocational reintegration of unemployed young people (Law 451/94, Art. 15) (see the relevant section in this report). Law 30 of 28.2.1997 (on converting Decree-Law 669 of 31.12.1996) then additionally increased the Fund by ITL 868 billion for 1997, ITL 494 billion for 1998 and ITL 739 billion for 1999.

    3.3.4.6. Duration

    At least until 1999.


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