Labor Update – Labor reforms for foreign national private sector workers (2) – Conditions for each of the Initiatives

On 4 November 2020, the Ministry of Human Resources and Social Development (MHRSD) announced certain labor reforms for foreign national employees working in the private sector that will come into effect on 14 March 2021. Since the initial announcement, the MHRSD (in coordination with the National Transformation Program and National Information Center) announced the conditions in order to benefit from each of the initiatives

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Salary due to employees even if business activity is suspended due to Covid-19

Employers cannot stop paying salary even when business activity is suspended due to COVID-19. Indeed, according to the Labour Courts of Bologna, the employer’s decision to temporarily shut down business activity during COVID-19 does not constitute a force majeure event that can justify the suspension of payment of salaries to employees. Such a decision is to be seen as a risk typically inherent to the performance of business activity – something that does not have an impact on the employees’ right to salary.

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