Lombardy is …productivity in a reformed labour market! #AskOurPartner De Luca & Partners

Lombardy is …productivity in a reformed labour market! #AskOurPartner De Luca & Partners

Within the initiative “Why invest in Lombardy #AskOurPartner” here is our third article. Discover some smart tips for investors in the following short interview with Vittorio de Luca – Managing Partner, De Luca & Partners.

2017 was a positive year for Lombardy’s economy: growth caused a further improvement in the labour market conditions, with an increase in the number of employees and a reduction of the unemployment rate. Data shows that employment increased by 1.3% over the previous year, in particular pushed by services sector (+4.1%, +116.000 workers), by an increasing women labour force participation rate (+2,6%, +47.000 workers) and by fixed-term contracts (+7,8%).  This trend seems to testify the good results of the recent reform of the labour market, known as “Jobs Act”, in reviving the employment rate in the Country. 

• Do you know that …

Italy has a very competitive labour market due to:

• high-quality Human Capital
• favourable labour costs

According to the OECD, Italian workers have on average higher hours worked per year compared to France, UK and Germany. Lombardy in particular is well known as top tier in productivity and efficiency.

• Does the new Italian labour market reform facilitate foreign investors?

The employment law frame has dramatically changed over the last decade, when key laws have progressively implemented a wide and deep labour reform based on flex-security principles.

The lawmaker has paid particular attention not only to the need to grant flexibility to corporations, but also to alternative dispute resolution tools. In fact, court litigation concerning dismissals has fallen by 70% since 2012.

• What are the most beneficial rules?

As a consequence of the reforms, time of justice has shortened, especially in Lombardy. Employment court litigation takes now 1.3 years on average in Italy, only 8 months in Milan.

As far as dismissals are concerned, the key points of the reforms are:

• Possibility to easily foresee the separation costs
• Separation costs are merely based on the seniority of employees

Furthermore, Italy has probably the highest flexibility in Europe for fixed-term contracts that, in principle, may start with no constraints or no need to specify reasons for a duration up to 36 months.

The interview is also available, together with useful information for investors, on the website of Invest in Lombardy, the service dedicated to foreign investment promotion, run by Promos (Special Agency of Milan, Monza Brianza, Lodi Chamber of Commerce), promoted by Unioncamere Lombardia and supported by Regione Lombardia.

To learn more, follow the Partners’ interviews that will be published on the website and You Tube channel of Invest in Lombardy every two weeks.

We thank Invest in Lombardy’s Premium Partner: Deloitte Financial Advisory; De Luca & Partners; Gianni, Origoni, Grippo, Cappelli & Partners; Masotti Berger Cassella; Cazzaniga Costruzioni; Todarello & Partners.