Piedmont Department ALMP

Torino
ON SPECIAL Miniguide redundancy fund (CIGS)
edited by Elizabeth mesturino and frank london Trinchero March 19, 2009
Companies targeted by the treatment of cigs cigs may have access to the followin
g categories of companies, provided they have occupied in the six months precedi
ng the request on average more than 15 employees (except in cases specified belo
w, where more employment requirement is required):

industrial Cigo already addressed, but the construction companies and related oc
cupational requirement
artisan companies that implement a suspension in the wake of cigs in the enterpr
ise customer who exercises "dominant influence management", namely that that com
pany has in the years preceding the application represented over 50% of total tu
rnover ' artisan company businesses with over 200 employees at the time of the r
equest; means businesses in the strict sense, not all those belonging to the pri
vate service sector, for the occupational requirement, it is reckoned apprentice
s and contract placement

business operators catering company operating in enterprises themselves fruenti

treatment of ordinary wage or overtime

appaltarici cleaning services companies operating in enterprises themselves frue

nti treatment of cigs publishers and printers of magazines, newspapers, magazine
s and national press agencies: for all these companies do not need a minimum emp
loyment requirement of cooperative enterprises processing of agricultural and li
vestock production cooperatives and associations and labor, this type of company
is very particular and varied needs to be examined case by case basis effective
access to cigs in relation to payment or otherwise of the budget for the Financ
ing cigs

auxiliary enterprises in the sectors of the rail service and airlines

Based on the transitional rules extended and refinanced every year (it also happ
ened in the 2009 spending limit of 45 million euros) are accepted for treatment
of cigs (ocupazionale the condition must exist at the time of request): the co
mmercial enterprises with more than 50 employees travel agents and tourism, in
cluding tour operators, with over 50 employees private security firms with mor
e than 15 employees
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Specifications on occupational requirement unless the special cases specified ab
ove, in most cases for which it is required to have occupied more than 15 employ
ees on average the previous semester is interpreted as meaning that when the req
uest there may be 15 or fewer than 15 employees and that "average" may not lead
to an integer that is the average could be eg. 15.7, still above 15. For the cal
culation must also take account of particular categories of workers such as appr
entices, placement contracts, the homeworkers and managers, while being excluded
(unless the contract) the same categories from access to treatment cigs. For th
e case of the use of cigs a result of bankruptcy proceedings, the requirement of
 "more than 15 employees" must exist at the time of its admission decision. Work
ers and workers excluded Posono beneficiaries access to the treatment of cigs wo
rkers with employment relationship and business with seniority of at least 90 da
ys of the following categories: manual workers, intermediate, employees, manager
s, workers employed on contract, insertion, and members workers not to co-operat
ive work (obviously where the cooperative is receiving treatment). Students are
allowed to those who have a fixed term contract until its expiration. Are exclud
ed apprentices, home workers, managers. Also excluded are those who are not empl
oyees of the company (eg administration, workers in temporary employment) or who
have no employment relationship (eg cocopro, vat). Causes of Crisis Interventio
n and durations Company: occurs against a condition of structural difficulties o
f the company, not resolvable with ordinary interventions, as evidenced by the n
egative economic indicators and financial and employment. The criteria for the r
ecognition of the crisis and a statement of requirements that must contain the p
lan of reorganization shall be fixed by Decree 31826/2002, partially amended by
Decree 35302/2004. Measures are listed in the same cases in which generally can
not be granted for the cigs crisis.€The normal recovery plan for 12 months of cr
isis is not extended. If you have already enjoyed a period of crisis for cigs, a
lways request for a new crisis can not be made before it is after a period of ti
me equal to 2 / 3 of that already used (if the first period was 12 months, a new
request can not be made before 8 months that have elapsed). Restructuring / reo
rganization / restructuring: the situations do not coincide, although the three
cases above show similarities in the procedures and terms possible. In particula
r, the restructuring was compared with a structured program of investments in th
e renewal / replacement of plant and production facilities. The reorganization i
s intended to intervene on the organizational and production company in order to
improve overall production efficiency and possibly trade. The conversion is rat
her a process of diversification or even total productive innovation, with inves
tments necessaire to modify plants and production processes, research, marketing
, etc.. The criteria to be followed by the plans submitted by companies, and tho
se for the granting of any extension shall be set by Ministerial Decree 31444/20
02.
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In all three cases, the normal life of the plan is 24 months, with possibility o
f extension to 36 or even 48 months in case of particularly complex plans. Cessa
tion of activity may involve an entire company, or even one or more establishmen
ts or one sector of activity. In this case the plan that the company must submit
aims primarily to relocation of staff and management of redundancies. The crite
ria are set out in the same DM in crisis situations. The duration is defined ini
tially in 12 months but can be extended to 24 months if it is presented an effec
tive plan for continuation of the actions of relocation of staff and the extensi
on to 24 months is granted subject to a total annual expenditure ceiling, which
2009 is equivalent to 30 million. Insolvency proceedings: in cases of bankruptcy
courts, compulsory liquidation, administration extraordinary request of the liq
uidator, liquidator or commissioner is granted the treatment of cigs for max 12
months, at the end of 12 months (or shorter period granted) where there are reas
onable prospects of continuation or resumption of, or even partial employment pr
otection through the sale of all or part of the company, on request of the liqui
dator, liquidator or commissioner may be granted an extension not exceeding six
months . Appeal to cigs and contextual Cigo Generally, it is incompatible for th
e same production unit the contemporary appeal to both institutions, the Law exp
ressly provides that the case has already been authorized for a period of tempor
ary crisis Cigo market, it is forbidden for same time submit a request for cigs.
It 'can, however, where the production unit is being suspended with partial use
of cigs, make any request for causal Cigo that are clearly distinct from those
giving rise to the cigs. Limits on the total duration of treatment of cigs and d
erogations The general rule provides that each production unit, the processing o
f cigs, including those granted for solidarity contracts, added to those of any
Cigo exclusively due to a lull in the market, not may exceed the total of 36 mon
ths within each period. The five-year periods are fixed: essndo first began Aug.
11, 1990 ending August 11, 1995, that the five current reference is started Aug
ust 12, 2005 ending August 11, 2010. This includes a number of cases where it ca
n be admitted than 36 months: bankruptcy restructuring, reorganization and c
onversion in the case of complex programs transformation in the ownership of
second extension of 12 months in case of termination of Even when use activitie
s to a contract of defensive solidarity may be granted special treatment cigs ex
ceed 36 months in three years if the continuation of the cds is helpful to reduc
e by 50% the number of workers involved in the process of mobility.
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Procedures The procedures that the company must follow are those set out in Pres
idential Decree 218/2000 and modeled largely those already provided for the use
Cigo. The company intends to implement a suspension must always use the cigs the
y inform the RSU or the provincial union: It is admitted that the suspension is
started without having completed the procedure in the union.€Within 3 days of no
tification by the company may be required to be considered together, to be submi
tted to the Piedmont Region in case they are interested only establishments loca
ted in Piedmont, the Ministry of Labour if they are interested in plants in more
regions. Are the subject of the joint program that the company intends, number
of workers who are suspended and expected duration, criteria for selecting worke
rs to stay and criteria of rotation, or alternatively the reasons given to justi
fy failure rotation. The procedure must be completed within 25 days of the reque
st for a joint review period is shortened to 10 days for companies up to 50 empl
oyees. The application of cigs should be submitted only to the Ministry of Labou
r, in terms already provided for Cigo (25 days from the end of the pay period wh
ich gave rise to the suspension) which states that its decree must be issued wit
hin a binding between 30 and 90 days depending on different cases. Each applicat
ion, any request for extension may not exceed 12 months. The decrees of acceptan
ce can be distinguished in that it can be issued a decree to approve the program
submitted by the company and a separate payment of cigs. The decrees are publis
hed weekly on the website of the Ministry of Labor at:
http://www.lavoro.gov.it/Lavoro/md/AreeTematiche/AmmortizzatoriSociali/CIGS/elen
coCig s.htm
Payment generally apply the same principles already described for Cigo. Througho
ut the period of suspension of the advance mechanism is used by the firm, with s
ubsequent recovery can begin as soon as the adoption of the decree being granted
. However for the period between the beginning of the suspension and the decree
is useful that the anticipation is expressly provided for in the trade union and
avoiding the so-called "disclaimer clauses" (such that the advance is taken as
the advance shares accruing TFR) in which companies tend to protect itself to a
possible failure of cigs request: in the latter case, the worker couple the norm
al salary paid by the company. If the company is in particular trouble, may requ
ire direct payment * by INPS, any acceptance must be indicated in the ministeria
l decree was granted.
* Note: At the time of writing this mini-guide (March 19, 2009) have announced s
ome changes to the regulatory framework, which would have the effect of renderin
g normal direct payment by the INPS, to help address the growing shortages of li
quidity by companies. But for now it is only ad and will then test the translati
on into concrete legislative measures
Wage measure integration - integrated elements of pay
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Fully apply the considerations concerning the Cigo. Cigs and various contractual
institutions (holidays, illness, additional monthly payments, maternity leave,
marriage leave, anf etc.). In general, the norms already set about the Cigo Some
minor differences: FN: tfr shares acquired during the suspension to remain born
e by the employer if the period of suspension is returning to work; Note: In the
absence of explicit rules, some INPS offices tend to return to work as the tran
sition to other forms of suspension, which the cigs notwithstanding that can als
o be recognized industrial companies eg. after 12 months of cigs for corporate c
risis. Conversely, if the suspension period ends with the dismissal, the company
may seek reimbursement INPS shares TFR for the period of suspension. Length of
service: During the suspension shall begin the normal length of work and its eff
ect on related institutions, such as seniority, the level crossings etc..; Contr
ibution figurative: in the case of CIGS, which generally refers to periods of su
bstantial time, assumes importance any wage that may occur. The notional contrib
ution is useful for law and the extent of the pension is credited automatically
on the basis of wage data reported by the company, actual earnings for the lates
t before the suspension of any planned changes in nature occurred during the con
tract period, so it is important to verify that the company communicates regular
ly changes so that over time there is a loss of value of contributions.€Cumulati
on between the treatment of cigs (and Cigo) and income from other employment law
does not prohibit that during a period of suspension with use of cigs (and also
the Cigo) the worker can perform other work, is subject to self: in But this ca
se is the mandatory requirement of prior notice to both the INPS is from which i
s suspended in the form of documentation (registered mail); non-compliance notif
ication shall result in loss of entitlement to wage with loss of both the emolum
ents of both the notional contribution, the decay work for the entire period of
suspension work on the farm, even if for that period must be made more ministeri
al decrees granted. The work that is going to play must have a temporary charact
er. In the case of transferring to permanent employment, after the probationary
period the employment relationship with the holding of origin is permanently ter
minated and thus there is no possibility of any fall in cigs, which may instead
return to cigs case of failure of a trial period. For periods of work, would nor
mally be suspended any wage, and even the notional contribution, as contribution
s are paid on the basis of remuneration received. However, formally there is no
absolute incumulabilità between treatment cigs (and Cigo) and income from work:
But the cumulation is allowed within the maximum value of cigs reference, and th
en from an economic standpoint the employee does not benefit (or must verify tha
t the new activities would involve a return lower than the ceiling cigs). In the
case of part time workers suspended, can the full cumulation with other part-ti
me work is carried out at different times from those report outstanding
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Obligations of the employee pending an appeal to cigs law puts on the part of wo
rkers fruenti treatment of cigs a series of obligations, to improve skills, stre
ngthen the position of "marketability" in the labor market and encourage the act
ive search for new employment. The framework is outlined in Article. 1 d of L. 2
91/2004 and subsequent circular 5 / 2006 of the Ministry of Labour. In summary:
for all workers in cigs for any cause there is an obligation of membership to
any provision of training or retraining for workers cigs for closure or cigs o
n the basis of special legislation in derogation 'general law in addition be req
uired to accept any job fair with the skills and qualifications possessed by the
employee (the term is not further specified), from public or private employer o
r from a' agency administration work, and even if it entails a fee of up to 20%
less compared to work which was suspended in both cases the requirement of acces
sion / acceptance occurs if the proposed activity takes place in the remote loca
tion no more than 50 km from the residence of the employee or otherwise accessib
le by public transport in no more than 80 minutes. Failure unjustified obligatio
n entails the loss of the treatment of cigs and notional contribution E 'still i
n force on D. Decree Law 468/97, amended in part D. Decree Law 81/2000, which st
ipulates that workers suspended at zero hour with use of cigs can be called by p
ublic sector bodies to perform socially useful work without this being the emplo
yment relationship and essentially no additional economic powers: in practice, '
activities can be proposed with a limit of time that the remuneration payable do
es not exceed the value of the treatment of additional salary. In this case, how
ever, does not seem as provided in disqualification from the cigs in case of ref
usal, as art. 9 of the above decree was repealed provided. Finally it should be
noted that the recent law 2 / 2009 Article. 19, paragraphs 1 a and 10, introduce
d a general obligation for all employees suspended or fired or otherwise unemplo
yed, recipients of financial support of all kinds, to make a declaration of imme
diate availability of a job or a course of training or retraining , as a conditi
on for receiving the allowance. The wording of the provision would suggest that
the obligation applies without distinction to all, including those using the nor
mal Cigo or cigs: if so, we will be faced with a decision totally senseless, bec
ause it is unthinkable that the services are able to manage hundreds of thousand
s of cases,€both because it would be illogical to think to refer to those policy
actions also active (and fortunately there are many) which remain suspended for
several weeks or even a few days. In the area are still under implementation me
asures to date have not yet been issued.
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