Italy: Redundancy/Layoff

The Italian Ministry of Labor and Social Policies has issued new guidance on an extended income protection measure for employees of companies that are winding down or have ceased operations. The circular clarifies two distinct scenarios under which employers can apply for a six-month extension of exceptional CIGS benefits in 2026, each with different requirements for demonstrating prospects for business sale or workforce reabsorption.

The financial crisis is having a significant impact in the field of employment, with an increase in dismissals for an objectively justified reason (giustificato motivo oggettivo) as employers seek to reduce their business costs.