March 27, 2025
Remote work – “Smart working”
Remote work: new deadlines for mandatory communications
Ministry of Labour
As of January 12, 2025, the deadlines for communications related to remote work (smart working) have changed. Under the new rules, private employers must submit notices of the start, modification, or termination of remote work within five days of the effective date.
This deadline refers not to the date the agreement is signed, but to the actual start or end date of the remote working arrangement. For example, if the agreement is signed on January 15 with effect from February 1, the communication must be submitted by February 6. The same rule applies in cases of extension or early termination of the agreement.
For employment relationships in the public sector, nothing changes: the deadline remains the 20th of the month following the start of the remote work arrangement, consistent with the special rules applicable to public employers.
This five-day deadline is mandatory, and failure to comply will result in an administrative penalty ranging from €100 to €500 for each affected employee.
March 20, 2025
Salary and benefits
MBO converted into welfare: no tax exemption if not extended to all employees
Revenue Agency
An energy sector company asked the Revenue Agency whether the variable portion of employee compensation (the so-called “MBO”, or Management by Objectives bonus), linked to achieving company or collective goals and converted by the employee into welfare benefits, could be exempt from taxation.
The system allowed employees classified as “Quadri” (middle managers) or Clerical Staff to allocate their bonuses to various goods and services, such as pension contributions, educational services, transport, and shopping vouchers. However, the Revenue Agency denied the application of tax exemption, clarifying that such a benefit is only allowed for “performance bonuses” as specifically defined in the 2016 Stability Law, and convertible into welfare through a second-level collective agreement.
In this case, although the MBO was partially linked to business results, it was part of an incentive reward system and did not meet the required conditions: it was not extended to a general category of employees, nor could it be clearly linked to a specific group. Therefore, tax relief is not permitted, and the benefits provided must be taxed as ordinary employment income.
