Covid has had a profound impact on the labor market, with millions either losing their jobs or placed in furlough measures as the economy has been tipped upside down.  It’s also sheds light on the inequalities in the labor market, with many workers branded as “essential” during the pandemic also those among the lowest paid and at most risk of catching the virus.

What has perhaps been less discussed is the impact of the pandemic on labor laws, but a new paper from Bocconi University highlights the potentially profound changes in the law as a result of the pandemic.

“The research involved both an analysis of the measures taken immediately, such as closing businesses, suspending employment relationships and measures to support wages or income, and a reflection on the long-term effects, for example on the subject of regulation of remote work,” the author says.

Unique differences

While there were undoubtedly some similarities observed between countries across Europe, there were also some crucial differences found.

“For example, Italy and Spain are the only States to have placed a ban on layoffs, elsewhere it was preferred to allow companies more freedom and use incentives to support both businesses and workers,” the author says. “Another interesting aspect is that almost all the legal systems have included forms of income support also for self-employed workers who, before the pandemic, were traditionally excluded from such measures. It would be interesting to see if these measures are normalized and enter into ordinary welfare practices.”

The author aims to continue monitoring the situation and conduct a similar analysis in a years time to see how systems have evolved in the wake of the pandemic, with a particular focus on whether any of the extraordinary measures introduced during the pandemic have been retained.

“Some issues are constantly evolving, such as smart working,” they conclude. “In Italy, for example, there is actually already a law, Italian Law 81 of 2017, that governs agile working. But this pandemic has raised some new issues that need to be clarified, including safety, compatibility with family burdens, schedules and whether it can be chosen voluntarily.”