Italy announced yesterday that it will take an important step in ensuring companies the flexibility they need to compete in todays labor markets by establishing a new option for fair dismissals. The severance package would pay from 15 to 27 weeks of salary. This figure is comparable to Spain's express layoff rates before recent labor reforms.
Monti's legislative change represents a great advance in the legal battles between companies and workers in Italy, where until now it was practically impossible to lay off workers.
Previously, firing decisions had to be put before a judge. Traditionally, labor relations in Spain have been tainted by excess legal action, an aspect that continues to be a weak point of Bañez's labor reforms.
