Two new draft laws were recently published which will directly affect employment contracts if passed. The first proposes introducing benefits for employees regarding the recruitment of workers aged between 16 and 24 and the regularisation of non-registered employees. The second proposes a temporary ban on dismissals in the public and private sectors without just cause.
The government recently enacted Decree 394/16, which increases the tax-free minimum salary, favouring pensioners and unionised employees. However, the taxation of severance payments in cases of dismissal without cause is a contentious issue for the tax authorities and taxpayers and there has been significant increase in claims for income tax withheld from employees on the termination of employment.