Since the suspension or reduction of activity determines a proportional reduction of the employees remuneration, the employees are entitled to receive a compensatory payment. Such compensation aims to assure that during the reduction or suspension period they receive a monthly salary equivalente to 2/3 of the regular gross remuneration and it shall never be inferior to the national minimum wage (which currently ascends to € 580) and with the maximum limit of 3 x national minimum wage (€ 1.740). The compensatory payment attributed to each employee is borne in 30% by the employer and in 70% by the Social Security;
- Performance of paid professional activity outside the company (for other entities –exception to the non-competition general rules) during the reduction or suspension period.
Should this be case, the employee shall communicate the same to the employer within a maximum of 5 days. Moreover, the compensatory payment of the employees who perform activity outside the company for other entities during the reduction or suspension period shall be reduced in accordance;
- Social Security benefits:
During the suspension or reduction period the employee is entitled to maintain all its social security benefits, which are calculated considering its normal remuneration;
- Vacation period and vacation and Christmas allowances:
During the reduction or suspension period the employees maintain all their rights as regards the vacation period and vacation and Christmas allowances, in the same conditions as if the same were rendering effective work. Regarding the Christmas allowance, the same is borne by the Social Security Services in 50% of the amount of the compensatory payment and the remaining is directly paid by the employer.
The lay-off may last up to 6 months and may be extended for another 6 months period.
In principle, during the lay-off or in the following 30 or 60 days (in case lay off proceeding which has lasted up to or over 6 months), the employer must not terminate the labour contracts. Other duties arise for both the employer and employees while the lay-off is in force.