Solidarity contracts (introduced by Law 863/1984) have the purpose of avoiding a drop into employment levels through a daily, weekly, monthly or yearly work-time reduction in view of decreased productive needs.

In the labour reform led by Renzi Government, legislative decree 148/2015 (so called “Jobs Act”), it was already provided the repeal of this income support tool starting from June 30th 2016.

The Stability Law 2016 has furnished further funds for the solidarity financing, around 60 millions of euro, for 2016: however, this doesn’t mean that the repeal deadline the is postponed.

Solidarity contracts will keep on finding their application:

• For the overall duration originally established in the company collective bargaining agreement if signed before October 15th 2015;
• In all the other cases, no later than December 31st 2016 even though the union’s agreement was providing a longer duration of the solidarity period;

The last day for lodging the solidarity contracts application, as specified by the Labour Ministry, remains June 30th 2016.