Since 1 March 2015 all new open ended contracts in Italy offer graded security, that is, severance payments in case of dismissals ... which are gradually and steadily increasing with tenure without any major discontinuity. These new contracts also reduce the range of compensations that judges may impose on employers in the context of judicial procedures on the fairness of the layoff, thereby reducing the uncertainty associated with the actual costs of dismissals.Sad that that qualifies as an improvement in the situation for Italians (both employers and employees), but it does. More easily fired or laid off, thus more readily hired. Contemplate the possibilities, signori.
This particular design of employment protection for open-ended contracts largely draws on proposals developed by labour economists in Italy (Boeri and Garibaldi 2006 and 2008), France (Cahuc and Carcillo 2006, Blanchard and Tirole 2008), and Spain (Bentolila et al. and Le Barbanchon 2012) in order to reduce contractual dualism, improve incentives for human capital investment in the workplace, and reduce inefficient layoffs.Our bold above, so the Italians won't miss that advice comes from the most recent Nobel laureate in economics.