SOLIDARITY CONTRACTS: THE REDUCTION OF CONTRIBUTIONS IS LINKED TO AN INCREASE OF PRODUCTIVITY

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The decree 17981/2015, approved the last 14th of September, modified the conditions under which companies that have contracts of defensive solidarity can benefit from the reduction of the contributions. From 1 January 2016, in order to take advantage of the 35% reduction of the contribution by the employers, the companies that have signed contracts of defensive solidarity, providing for a reduction in working hours in excess of 20%, will have to demonstrate that they have adopted tools to increase the production activity to a similar extent to that of the tax or, alternatively, an investment plan aimed to overcome the management inefficiencies or production process.

The operation of this facility will be defined through the adoption of a special decree and may be granted for a period not exceeding the duration of the contracts of solidarity and, in any case, for a maximum of 24 months. The application must contain documentation of the tools for improving productivity adopted or the possible investment plan approved and will be sent to the INPS and the DTL responsible no later than 30 days after the conclusion of the contract (for contracts already being within 30 days of publication of the implementing circular). The acceptance or rejection of the reduction in contributions will be communicated within 120 days of receiving the request.