January 28, 2025
TFR, notice period, and other termination indemnities
Judicial verification of employment credit is required to access the INPS guarantee fund
Supreme Court, Labor Section
Some employees filed a lawsuit to establish their right to receive their severance pay (TFR) from the INPS Guarantee Fund. The company, which had failed to pay the workers, had been removed from the business register and could no longer be declared bankrupt. As a result, the employees, considering any enforcement action against the company to be futile, submitted only the documentation proving their credit to the court. The lower courts deemed this documentation sufficient to activate the Fund’s intervention, especially given that enforcement actions taken by other employees against the same company had been unsuccessful.
However, the Supreme Court overturned this decision, clarifying that in order to activate the Guarantee Fund, a judicial verification of the outstanding credit is necessary, which can only be obtained through an enforcement action. The verification of the credit is essential to determine the extent of the INPS intervention, as the institution cannot proceed without a decision confirming the validity of the worker’s claim. In the case of dissolved companies, shareholders become successors in the company’s debt relationships, and if the credit is legally recognized against them, an enforceable title can be issued to allow the Fund’s intervention. The Court concluded that INPS is only required to make payments if all legal conditions are met, and judicial verification of the credit is an essential requirement for the Fund’s intervention.
March 6, 2025
Incentives
New tax regime for returning workers: clarifications on requirements and conditions
Italian revenue agency
The Italian Revenue Agency has provided clarifications on the conditions for accessing the new tax incentive scheme for returning workers, introduced by Legislative Decree No. 209 of December 27, 2023.
This regime allows for a 50% reduction in taxation on employment and self-employment income for individuals who transfer their tax residence to Italy, provided that they have not been tax residents in Italy for the past three years and possess high qualifications or specializations. If the worker returns to work for the same employer or a company within the same group, they must have spent at least six or seven years abroad.
In the case examined, a worker who returned to Italy in 2025 for a new job was granted the tax benefit for the income earned with the new employer but not for the income from work performed in the first three months of the year for the previous foreign employer.
These clarifications confirm that, to qualify for the regime, it is essential to assess the duration and conditions of the stay abroad, as well as the type of employment relationship upon returning to Italy.
February 18, 2025
Working hours, leave, and time off
Time spent dressing and undressing must be paid for nursing staff
Supreme Court, Labor Section
A nurse filed a lawsuit requesting additional compensation for the time spent dressing in her uniform. She claimed that she spent 15-20 minutes daily dressing and undressing before and after her work shift without receiving any payment for this time, even though it was spent outside her regular working hours.
The case was brought before the Supreme Court, which dismissed the claim. The judges emphasized that, according to collective bargaining agreements, time spent dressing and undressing must only be compensated if performed before and after official working hours and if proven through time clock records. The lack of such proof led to the dismissal of the claim.
