The new law also regulates “solidarity contracts,” which allow employers to reduce the working time of older workers while preserving their right to social security, so that new, younger workers can be employed on indeterminate contracts. In this case, the law establishes a link between the Paredible Solidarity Fund, joint institutions and employers to ensure that workers whose working time has been reduced under the measure do not lose the social security contributions that would have been calculated and paid on the share of their lost wages. These provisions should be linked to section 41, paragraph 5 of the JATC, which applies this framework to workers who are two years before the legal retirement age. These workers must have agreed not to work more than half of their previous working time. With regard to the Solidarity Fund, the JATC respects the framework of Law 92/2012, according to which the most representative trade union and employers` organisations at the national level are solely responsible for the creation of these funds. Article 1, paragraph 285, of the Stability Act complements the provisions relating to social security contributions, in particular with regard to solidarity contracts aimed at recruiting new permanent workers by reducing working hours. This type of contract was previously governed by Section 2 of Act 863/1984. The Stability Act allows joint institutions and solidarity funds through parities to compensate for the lack of social security contributions for workers whose working hours have been reduced. Newspapers across Europe have done so out of solidarity with those killed. Several people were arrested, including two young Hungarians who came to show their solidarity. The JATC regulates new solidarity contracts by setting limits on the content and management of each agreement. This type of contract is governed by Section 14 of the JATC, which provides that, in order to increase the number of employees, collective agreements at the enterprise level can allow for a lasting reduction in working time and remuneration by hiring new employees on indeterminate contracts. For every worker hired in this way, employers receive a grant from the National Institute of Social Security (INPS) equal to 15% of the gross salary for the first 12 months, in accordance with the current collective agreement.
This subsidy is expected to be reduced to 10% and 5% respectively over the next two years.