Thursday, May 19, 2016

blurs the incentive effect – BBC

In the first three months of this year have been there, in the private sector, one million and 188 thousand assumptions. Over the same period last year there is a decrease of 12.9%. But if you lower the magnifying glass on the only open-ended contracts, those of the Jobs Act without Article 18, the decline is even more pronounced: -33.4%. The INPS arrived data confirm that the reduction of discounts on contributions paid by companies has led to a slowdown in the labor market. The contracts signed last year predicted a maximum discount of 8,060 Euros per year for three years. Those signed this year after the changes come with the latest Stability Law, a maximum discount of 3,250 Euros per year for two years. There is no comparison. And a weaker incentive produces inevitably weaker effects. The balance, ie the difference between new hires and terminations, remains positive in the first quarter of the year: +51,097 stable contracts. But with a slump of 77% compared to last year.

Vouchers

Those who keep running are vouchers, good work 10 euro per hour, designed at the beginning to bring out undeclared work in agriculture and then extended to all sectors. Always in the first three months of the year they grew by 45.6% over the same period last year. A little ‘less of the boom in the whole of 2015, more than 75%. But is this the type of contract that is driving the Italian labor market. The government itself has admitted that behind the explosion of vouchers, there might be some abuse, that is the trick of using the same good from an hour to several hours of work. For this is coming a corrective decree, which is discussed for weeks, providing for traceability: the obligation for the employer to inform the INPS via sms or e-mail, at least 60 minutes before the performance, the personal data and tax code of the worker. And on this point there is an important innovation.

Maid and nanny

in the intentions of the government, the obligation to sMS or email should not cover only companies in the strict sense. But also families with vouchers that pay the nanny, the maid or nanny, which is not taken on a permanent basis but works at home only occasionally. The majority of the centrists, Ncd, ask to drop this piece of the decree, which could be seen as a nuisance more for families. But when the government line is to also understand their obligation to sms or email, to limit possible abuses. The employer, company or family, that does not communicate to INPS data before using the voucher, risks a fine from 400 to 2,400 euro for each worker involved.

solidarity contracts

in the same decree, which could be discussed at the next Council of Ministers, should enter also the norm that turns solidarity contracts from defensive to expansionary. What does it mean? Solidarity, that is, the reduction of working hours and salary for people already employed, may be used not only to avoid layoffs but also to hire new people. The transformation should be possible for solidarity contracts in progress for at least one year and signed by 31 December 2015.

May 18, 2016 (modified May 19, 2016 | 07:50)

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