NEW RULES REGARDING THE STATE OF UNEMPLOYMENT

The National Association of Active Labour Policies (Anpal), with memorandum no. 1/2019, illustrates some changes regarding unemployment, in consideration of the changes in the law (Law Decree 4/2019), as a result of some problems created in relation to the law on the subject of unemployment status for the majority of workers and the one considered for the purposes of the income of inclusion, with respect to the law on the subject of compatibility of the NASpI (unemployment benefit) with employed and self-employed work income lower than the limits exempt from tax.

You are reminded that subjects who issue the DID (statement of immediate willingness to work) and alternatively, those who satisfy one of the following requirements are considered to be in “ unemployed status”:

  • not carrying out any kind of working activity, whether it be for an employer or self-employed;
  • workers whose income from employed or self-employed work produces a gross tax equal to or lower than the deductions to which they are entitled under article 13 of the consolidating law on income tax (TUIR).

Therefore, the situations regarding the preservation, suspension or the loss of unemployment status are commented on.

As regards any employed work, you are reminded that the worker may enter an unemployed status, as well as keep this status if he or she already receives unemployment benefit (NASpI), even if they carry out a working activity whose income from employed or self-employed work corresponds to a gross tax equal to or lower than the deductions entitled under article 13 of the consolidating law on income tax (Tuir); basically what you obtain with an income currently equal to 8,145 euro per annum. It is pointed out that the assessment regarding the amount of income is to be carried out in perspective terms, that is by observing the potential suitability of the existing working relationship to produce an income exceeding this threshold within the year.

Any suspension of the unemployed status, that is obtained “in the event of employed work lasting up to six months”, is obtained if this status is not preserved, taking into account of course the aforementioned income limit. The completion of 180 days (6 months) is referred to the single working relationship even if the worker has started several working relations during the course of the same year; therefore, in the event of the worker establishing a working contract with a new employer, even a seamless one, the suspension period starts again. After 180 consecutive days from the beginning of the working activity, if the contract is still in force, the interested party loses his or her unemployed status if the perspective annual income exceeds  8,145 euro.

It is highlighted how the worker with an intermittent working contract retains his or her unemployed status throughout the period of the contract, but only in the event of the annual remuneration being lower than the limit exempt from tax (8,145 euro per annum).

Otherwise, for the purposes of suspending the unemployed status, it is necessary to distinguish whether the contract envisages the obligation of response by the worker, and as a consequence whether the payment of an indemnity of availability for periods of unemployment is payable.

There are, therefore, 2 different situations:

  • intermittent contract in which no obligation of response and thus no indemnity of availability is envisaged, the unemployed status will be suspended in the periods of effective performance of the working activity, while the worker will remain unemployed in the periods he or she does not work;
  • intermittent contract in which an obligation of response is envisaged, and the relevant indemnity, the unemployed status is suspended for the whole period in which the contract lasts, if the annual perspective remuneration exceeds 8,145 euro. After 180 consecutive days from the beginning of the working activity, if the contract is still in force, the interested party loses his or her unemployed status if the perspective annual income exceeds 8,145 euro.

In the event of internships, not legally considered a working relationship, despite a specific indemnity of participation being envisaged, the intern may issue the DID and be considered in unemployed status; the same goes for the subject who is unemployed and who starts an internship. The same considerations are valid for cases of performing community service or socially useful work.

In relation to self-employed work, it is pointed out that if the taxable income for income tax purposes (Irpef) corresponds to a gross tax equal to or lower than the deductions to which they are entitled under article 13, of the consolidating law on income tax (Tuir), the worker acquires or maintains the unemployed status. Unlike employed work, in no case may carrying out self-employed work give rise to suspension of the unemployment period. It is pointed out that the income limit in self-employed work that means you achieve or keep the unemployed status, is currently, in most cases equal to 4,800 euro per annum. This is with the exception of income assimilated to that of employed work (article 50 (1) of the consolidating law on income tax), for which the limit for the purposes of keeping the unemployed status is equal to 8,145 euro per annum. The worker finding him or herself exceeding these income limits is obliged to inform the competent services of having exceeded them, so that they lose their unemployed status, which begins from the date they exceed the income limit itself.

As regards self-employment, it is pointed out that those engaged in occasional work (article 54-a, Decree Law 50/2017) are considered unemployed, because the consideration received by the worker “does not affect their unemployed status”, by express legal provision.

Considering that the provisions laid down by article 4, of Decree Law 4/2019, are applicable starting from 30 March 2019, it follows that for the purposes of keeping the unemployed status, they will only be valid for work contracts and self-employed work started after 29 March 2019.

The subject that ends the suspension of the unemployed status starting from 30 March 2019 and has an open ended work contract with income lower than 8,145 euro, in the calendar year, keeps his or her unemployed status in respect of the laws in force.

The office remains at your disposal for any further clarification.

Best Regards

Arianna De Carlo – Senior Payroll Specialist & Labour Consultant

Contact: adecarlo@ldp-payroll.com