Transparency Decree: Legislative Decree No 104/2022

With the entry into force of the recent Legislative Decree No 104/2022 all employees will have to be informed, in writing, about the main elements of the employment relationship and the individual, collective and company contract applied.

The Legislative Decree No 104/2022 will be applied to any employer regardless of size, employment and turnover requirements with effect from Aug. 13, 2022, and will extend its effects not only with respect to new subordinate employment relationships (including term, part-time, intermittent and temporary employment relationships) but also to special forms of work performance such as continuous collaborations, occasional employment contract as well as contracts with maritime, fishing and domestic workers.

Employed workers already in force on that date, however, will be able to make a written request to know the "essential elements of the employment relationship" to the employer, who will have 60 days to share the data with the employee.

The Legislative Decree No 104/2022 does not apply to: • employment relationships with an average duration of less than 3 hours per week in a period of 4 consecutive weeks; • agency contracts; • all self-employed relationships with a VAT number.

The decree also has an important impact on privacy regulations, requiring the employer to inform the employee - providing specific details - about the possible use of automated decision-making or monitoring systems in the hiring, management or termination of employment or for the purpose of assigning a position or assigning specific tasks or duties.

The information must be provided in writing, including in electronic form, and the company must keep the copy of the receipt statement for at least 5 years.

Lastly, the penalties, which in case of omission (which includes the mere delay) may range from 250 to 1,500 euros per worker with intervention of the Labor Inspectorate.

The entry into force of the new text has raised doubts about its consistency with the general process of simplification and digitization of bureaucracy under way.

In fact, the presumable administrative and bureaucratic burden that will result for employers and principals seems to stand in stark contrast to the favor for simplification that has characterized the legislature in recent years (think, for example, of the National Recovery and Resilience Plan - PNRR that has invested so much on this point).

Clovers remains at the disposal of clients to provide all the advisory work necessary to comply with Legislative Decree No 104/2022.