Difference between extension and renewal of contracts?


Question by: Ing. Romolo Bellini | Last updated: January 2, 2022

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The difference between extension and renewal is given by the contractual expiry: in the first case, when the contract has not yet expired, the contractual expiry is moved forward; in the second case, the contract, now expired, is renewed with a new manifestation of will.

What changes between extension and renewal?

While the extension, as highlighted above, concerns the “postponement” of the expiry date of a fixed-term contract that is regularly in progress, the so-called renewal is nothing more than a new one (second, third, fourth, and so on) fixed-term contract between the same parties.

What is meant by technical extension?

“Technical extension” – institute aimed at ensuring that, pending the execution of a tender for the new assignment of a service, the provision of the same does not suffer any solution of continuity – represents a completely exceptional hypothesis, usable only if it is not can activate the necessary …

When is the renewal of public contracts?

DRAFT. The Council of Ministers has begun to pass the 2022 budget law. The increases with respect to the salaries in the table will be 0.3 per cent from 1 April 2022 to 30 June 2022 and 0.5 per cent from 1. July 2022. …

How many extensions can be made in a fixed-term contract 2020?

In particular, the law provides that the parties can extend the contract only when the duration does not exceed 24 months. The maximum number of extensions is 4 over a 24-month period. If this threshold is exceeded, the contract is transformed into an indefinite period from the date of stipulation of the fifth extension.

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How often can a fixed-term contract be extended?

In any case, the term of the contract can be extended up to a maximum of 5 times over 36 months. If the number of extensions is higher, the fixed-term contract is transformed into a permanent relationship from the effective date of the sixth extension.

How many extensions before the indeterminate?

If the number of extensions is greater than four, the contract is transformed into a permanent contract from the effective date of the fifth extension. Furthermore, the extension of the fixed-term contract is free only within the first twelve months of the duration of the relationship.

When can it be directly relied upon?

36, paragraph 2 of the Code of public contracts, has allowed the contracting authorities to proceed through direct assignment for “works, services and supplies for an amount of less than 150,000 euros” (the conversion law has brought this threshold for services and supplies to 75,000 euros).

How is the value of a contract calculated?

The calculation of the estimated value of a public contract for works, services and supplies is based on the total amount payable, net of VAT, as assessed by the contracting authority or entity.

Who grants the extension of the works?

Renewal and extension are tools available to the Contracting Authority to extend the effects of a contract over time and avoid a block of administrative action. However, they are institutions that constitute an exception to the principle of unchangeability of the contract.

Who grants the public works extension?

The person in charge of the procedure decides to grant the extension, after consulting the construction manager, within thirty days of receipt.

When to communicate the extension of the fixed-term contract?

In order for the extension to be valid, it must be communicated to the employment services of its own territory, through the Co Unilav model. The communication must be sent within 5 days from the first day of extension.

What is meant by renewal?

By extension we mean the continuation of the same contract over time by postponing a term, or an expiry date. By renewal, on the other hand, we mean the “renegotiation” with the same subjects of the contractual conditions, without prejudice to the maintenance of the same legal category and job.

What happens when the fixed-term contract expires?

Once the fixed-term contract is terminated, the employer no longer has any obligation with the employee: he is therefore neither required to renew the contract, nor to stabilize it with a permanent relationship.

What is the tender amount?

Calls for bids for the award of public contracts for works, supplies and services must include a basic auction price, that is the amount of the total value of the contract estimated by the contracting authority in relation to market prices.

What is the basic auction amount?

The starting price of the auction is the reference value for the presentation of economic offers by competitors; for the purpose of its determination, it is not necessary to take into account any options.

What is the CIG code for?

The tender identification code or CIG is a code adopted in Italy to identify a public contract stipulated following a tender or entrusted with one of the other methods allowed by the public contracts code.

How do you proceed with direct assignment?

Reliance from a practical point of view

To legitimize the direct assignment therefore without a real (albeit informal) tender, it is necessary either to proceed with a previous analysis of the market conditions from which the subject to whom the order is then originates arises.

When can you do without MePA?

145) modified the threshold for “not incurring” the Mepa from 1,000.00 to 5,000.00 € uro. Therefore from 1 January 2019 the Administrations are OBLIGED to resort to Mepa for the purchase of goods and services for amounts exceeding € 5,000.00. Consequently, the obligation now becomes only a question of amounts.

What does direct awarding of contracts mean?

Direct assignment is a type of acquisition of services and supplies in economy with which a contracting station acquires goods, services or works.

How many renewals can the employer do?

Therefore, there is no maximum number of term contract renewals. The important thing is that the fixed-term relationships, added together, do not have a duration exceeding 24 months. Instead, there is a maximum number of extensions equal to 4.

How many renewals can a company do?

The renewals can be a maximum of 4 over the 24 months and each extension must be motivated by an extraordinary and unpredictable reason. The employee will enter service within 10 days from the expiration date of a contract lasting up to 6 months or within 20 days if it is longer.

How many extensions can be made in an interim contract?

In the present case, the National Collective Labor Agreement for the Administration Agencies category of October 15, 2019 provides that the general regime of extensions of fixed-term employment contracts is set at a maximum number of 6 extensions for each individual contract, over the period legal limit of 24 months.

When does a temporary contract become permanent?

If the employment relationship exceeds the “buffer” period of 30 days (in the case of a contract of less than six months) or 50 days (in the case of a contract of more than six months), the contract is considered transformed from a fixed term to an indefinite term date from this overrun.

How to know if they don’t renew your contract?

5 signs to find out (in advance) if your boss wants to send you …

  1. Your boss places too much emphasis on details that aren’t relevant. …
  2. For you there is no longer a career or a “future” …
  3. Suddenly you have to keep track of anything. …
  4. The boss communicates with you sporadically and with digital tools.


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