The opportunity of the apprenticeship contract in young people's recruitment

Reaching the age of 15 in Italy, within certain limitations and on condition of having fulfilled compulsory schooling, marks the date of entry into the world of work. Particularly, from a contractual point of view, one is considered young until the age of 29. Given that these are delicate ages, in order to protect teenagers and young people, the legislators chose to provide clear and precise indications regarding their access to the world of work, and made available the following contractual formulas:  the apprenticeship contract, that comprises three different typologies; curricular internship; extra curricular internship. Of these, it should be made clear in advance that, only an apprenticeship constitutes a proper employment relationship. The apprenticeship contract The Italian law (Art. 41 et seq. of Legislative Decree 81/2015) defines the apprenticeship as an open-ended contract and immediately clarifies its dual nature: on the one hand, the employer's commitment to train the apprentice and, on the other hand, the apprentice's actual employment in the workplace.  The key role played by the training within this type of contract is also clear from its formal requirements. First of all, the contract, which must be in writing for the purposes of proof, must include an individual training plan - in summarized form. This is a very important document that sets out the contents of the training, also on the basis of modules and forms established by collective bargaining (following also CCNL) applied by the employer or by bilateral agencies. Depending on the case, the provisions lay down a precise number of hours, either internal or external to the workplace, which must be dedicated to training. Since this formula involves first-time workers, employer must also: - identify a tutor or company contact who has the task of imparting the skills required for the performance of the work; - keep records of the relevant training and professional status for contractual purposes, within the worker's booklet; The contract at issue may theoretically involve students and young people from 15 to 29 years of age, and it is precisely in view of the broad evolutive spectrum of these subjects that three typologies are distinguished, each of which is characterised by specific facets. First type:  Apprenticeship for obtaining a qualification and professional diploma, a higher secondary education systemse diploma and a higher technical specialisation certificate. This type of apprenticeship is reserved for young people between the ages of 15 and 25, provided they are enrolled in a training course (Circ. Min. Lav. 6 June 2022 no. 12), and is aimed at obtaining a diploma and/or other qualification recognised by the school system. This is achieved through a path that combines on-the-job training with education and vocational training set out by educational institutions operating within the Italian egions. In particular, the regions (and the autonomous provinces of Trento and Bolzano) are entrusted with the preparation of the training profiles (in the absence of regional regulations, the involvement of the Ministry of Labour with specific decrees is envisaged). In practice, within the regional vocational education and training system, off-the-job training is provided in the training institution in which the student is enrolled and may not exceed 60% of the regular timetable for the second year, or 50% for the third and fourth years. The contract can be undersigned:  - before the apprentice starts of the training course; - at the beginning of the training course; - after the training course has started, as long as the minimum contractual duration of six months and compliance with the minimum working time are guaranteed. The duration of the contract depends on the qualification or diploma to be obtained, being in any case no longer than three years and possibly four years in the case of four-year vocational diplomas. The possibility of concluding this contract - for a duration of no more than four years - is also envisaged for young people enrolled in higher secondary education in order to obtain a diploma or additional technical vocational skills or a certificate of higher technical specialisation. In addition to the employer's obligations, in this type of apprenticeship, an agreement must be signed with the training institution where the student is enrolled (outlines defined in the Interministerial Decree of 12 October 2015) containing: the content and duration of the employer's training obligations; the general criteria for the implementation of apprenticeship pathways, and, in particular, the requirements of the companies where the maximum number of hours of schooling that can be carried out as apprenticeships; the number of hours to be carried out in the workplace. Second type.  Professional apprenticeship Reserved for individuals aged between 18 and 29, this apprenticeship can be used in all sectors of activity, both public and private. This is the most common method of employment for young people without experience. Here, the goal is to learn a job and/or to obtain the professional qualification provided for by the parties, respecting the indications of the national multi-industry agreements and the professional profiles provided for by the collective agreements. It is precisely the latter that indicate the duration of the contract as well as how the training will be provided. In this case, training takes place in the company area and is supplemented by the public training offer, inside or outside the company, aimed at basic training education for a maximum of 120 hours over the three-year period. In particular, this number of hours varies on the basis of the qualification held by the worker. For employers who carry out their activities in seasonal cycles, collective bargaining may provide for specific arrangements for the conduct of the apprenticeship employment relationship, including fixed-term contracts. The maximum duration in general is three years, which can be increased to five, for professional profiles characterising the artisan figure identified by collective bargaining. Third type. Higher education and research apprenticeship Like the previous, this type of apprenticeship is aimed at young people aged between 18 and 29. Apprenticeship contracts signed under this typology focus on obtaining a university qualification, including a PhD, carrying out research activities, and practical placement for access to the ordinary professions. The employer is required to sign an agreement with the educational institution or research body in which the student is enrolled, which states the duration, training content and the way this has to be carried out by the employer. The same agreement also recognises a certain number of credits to the student, corresponding to the number of hours of training carried out with the employer. Training outside the employer's area of responsibility, which is usually no more than 60 per cent of the statutory hours, is carried out in the training institution in which the apprentice is enrolled. The benefits of the apprenticeship contract for the employer The apprenticeship contract is undoubtedly very cost-effective for employers. Most notably, the Italian laws provide for a reduction in labour costs (lower social security contributions) and allow the recognition of a reduced wage payable to the apprentice (which will increase as skills are developed). In-depth:  Payment of working hours:  Under the first and third types, the employer is not obliged to pay the apprentice for the hours of training carried out at the educational institution, while the training hours, charged to the employer, are paid at a value corresponding to 10 per cent of the value of the defined full salary. Similarly, the contribution must only be calculated on the wages actually paid for the hours of training charged to the employer, as no payment is due for the hours of external training. Classification of the apprentice Both national multi-industry agreements and collective bargaining agreements provide for the possibility, alternatively, of: under-grading the apprentice (by a maximum of two working levels), or of remunerating the apprentice as a percentage of the salary corresponding to the final destination level. Social security relief Both employer and employee can benefit from a significant reduction in contributions (covering pension, occupational accidents and diseases, sickness, maternity, family allowances, unemployment) that varies according to the company size. Some numeric indications are given below to better represent the reduction under discussion: Companies up to 9 employees: the employer contribution is 3.11% in the first year of employment, 4.61% in the second year, and 11.61% in subsequent years; Companies having more than 9 employees: the employer contribution is 11.61% for the entire duration of the apprenticeship. Beyond the company workforce, the apprentice's contribution is 5.84%. In addition, as of January the 1st 2022, the additional financing contribution for wage subsidies, applicable according to the sector and employment size of the employer, is due. Of this contribution, the apprentice's share is 1/3 of the total contribution. To encourage the stabilization of the employment relationship, after the termination of the apprenticeship period, the above-mentioned contribution benefits are also applicable for the year following the end of the apprenticeship period (with the exception of contracts concluded with workers receiving unemployment benefits). Furthermore, with reference to the year following the stabilisation year, a contribution waiver of 50 per cent of the total employer contributions applies: for maximum 12 months; with a ceiling of € 3,000 on an annual basis; provided that the worker has not reached the age of 30 on the date of continuation. Contractual considerations Being a particularly convenient contract, the law places numerical limits on the maximum number of apprentices employed at the same time by the same employer. Specifically: A maximum of three apprentices may be taken on in companies with up to two qualified employees; Up to nine apprentices may be taken on in companies with up to 9 skilled employees; At a ratio of 3 to 2 in relation to the workforce in service can be hired in companies with more than 9 qualified employees. This is valid for the generality of economic sectors, but there are further specifications with regard to companies belonging to the craft sector, which vary according to the activity carried out as well as the company's workforce. At the end of the apprenticeship period, the legal framework recognises the freedom of either party to terminate the contract, subject to a notice period commencing at the same time (thus without the limits referring to the rules on dismissal). Otherwise, in the absence of an express termination, the relationship continues as an ordinary open-term employment relationship. Instead, during the apprenticeship period, the employer may only terminate the contract if there is a just cause or justifiable reason. In cases of dismissal without justification, the general rules on dismissal apply, whereas resignation is free.