Law no. 85 of 3 July 2023, converting the Decree-Law no. 48 of 4 May 2023 (the so-called Labour Decree) introduced a number of amendments to the original text. The most relevant ones are outlined below.
Fixed-term Contracts
Under the previous rules, a fixed-term contract lasting less than twelve months could be freely extended, but renewed only in the presence of justifying reasons. Law 85/2023 provides that, within the first twelve months, fixed-term contracts may not only be extended but also renewed, without the need for justifying reasons. After the first twelve months, however, the presence of said reasons will be required.
N.B.: for the calculation of the twelve-month period, only contracts dated from 5 May 2023 will be taken into consideration.
The above also applies to temporary agency work, given the substantial equivalence between the forms of contract.
Staff leasing
A further amendment concerns staff leasing, for which the previous rules had set a percentage for the user of no more than 20% of the personnel directly employed. The new Law instead provides that, in calculating the above percentage, the following types of employees will no longer be counted:
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