On 13 July 2018, the Italian Government passed the “Dignity Decree,” which was converted into law No. 96/2018 on 11 August 2018. The key changes include:
- The maximum length of fixed-term contracts decreased from 36 months to 24 months with a maximum of four instead of five extensions within that period. The contract becomes open-ended at the fifth extension.
- The unfair dismissal minimum indemnity for employees hired after 7 March 2015, increased from four to six months’ salary, while the maximum indemnity increased from 24 to 36 months’ salary.
- Italian and international companies that received state aid and relocated outside the European Union before a five-year period will be obligated to return the aid and pay between two to four times the state aid amount.