The Italian parliament has voted into law the Italian budget for 2022. As usual, budget legislation is long and covers many topics. This year, some provisions include new rules designed to address the labor consequences of offshoring transactions.
In 2021, when the freeze on austerity related to COVID-19 was lifted, the media, trade unions, and parliamentary representatives expressed concern about cases of multinational companies closing long-term business units in Italy, especially when the absence of financial difficulties has affected them indicates that the closed units are transferred abroad. Negative social sentiment due to job losses has led to calls for restrictions on offshoring.
Later restrictions apply to more than just offshoring situations, so employers planning austerity measures in Italy should carefully consider the new provisions.