The case, explained

The Infringement Decree is Law: New Rules on Beach Concessions and Public Sector Precariousness

7 min read · Updated November 2026 · Editorial oversight: Avv. Federico Papa

The Italian legal system takes a decisive step toward compliance with European Union law with the entry into force of Law no. 166/2024, converting the so-called Infringement Decree. As reported by specialized sources over the past two years, the legislative intervention became necessary to avoid substantial financial penalties related to infringement procedures initiated by the European Commission regarding competition and labor protection. This article systematically examines the reforms introduced in maritime state concessions and the new framework for compensatory indemnity for fixed-term contract abuse in the public sector. Through the study of the twin case, we analyze how the new compensation thresholds and deadlines for public tenders directly affect public administrations and businesses, marking a clear departure from previous regulatory uncertainties.

The Infringement Decree is Law: New Rules on Beach Concessions and Public Sector Precariousness

In brief

The article analyzes the innovations introduced by Law no. 166/2024, aligning Italy with EU obligations. Key aspects include the extension of beach concessions until September 30, 2027, with mandatory public tenders, and the increase in compensation for public sector fixed-term abuse up to 24 months' salary. While other articles in the series address fixed-term contract grounds, this analysis explores the sanctioning mechanism designed to resolve pending EU disputes and ensure competition in state-owned assets.

The fact
As highlighted by leading legal news outlets such as Il Sole 24 Ore and NT+ Diritto, the legislative process culminating in Law no. 166/2024 represented a mandatory response to pressure from the European Commission. The matter stems from years of EU objections regarding both the absence of competitive procedures for maritime concessions and the insufficient deterrent effect of Italian sanctions against fixed-term contract abuse in the public sector. The conversion law, published in the Official Gazette on November 14, 2024, marks the end of a long period of administrative stalemate. At the center of the reform are the management of state-owned assets and the protection of temporary public sector staff, areas in which Italy faced potential referral to the Court of Justice of the European Union with severe financial penalties. The status of the matter is now that of full regulatory force, which obliges Municipalities to launch tenders and labor judges to apply the new compensation parameters.
The laws at play
The core provisions focus on three key legislative interventions:
1. Article 1 amends the framework for maritime state concessions, setting September 30, 2027, as the final expiration date for current concessions and establishing the obligation to launch competitive procedures by June 2027. The provision also introduces mandatory compensation for the outgoing concessionaire, calculated on the value of unamortized investments.
2. Article 12 amends Article 36 of the Consolidated Law on Public Employment (Legislative Decree no. 165/2001), rewriting the sanctioning regime for the abusive use of successive fixed-term contracts in the PA. The new compensatory indemnity ranges from a minimum of 4 to a maximum of 24 months' salary, effectively doubling the previous statutory caps to ensure a restorative and deterrent function aligned with European standards.
3. Article 8 accelerates the recognition of foreign professional qualifications, reducing bureaucratic hurdles for EU professionals wishing to practice in Italy, pursuant to Directive 2005/36/EC.
What the jurisprudence says
Administrative and EU case law played a decisive role in prompting this legislative reform. Constitutional and administrative jurisprudence, in line with the rulings of the Plenary Assembly of the Council of State, had already established that automatic and generalized extensions of maritime concessions are incompatible with Directive 2006/123/EC (the so-called Bolkestein Directive). Similarly, the Court of Justice of the European Union has repeatedly criticized the Italian compensation system for public sector fixed-term abuse, holding that narrow statutory compensation ranges were insufficient to prevent abuses by public employers. National courts are now required to apply the new sanctioning ranges established by Law no. 166/2024; while contract conversion into a permanent relationship remains precluded in the public sector under the constitutional requirement of public competitive examination pursuant to Article 97 of the Constitution, a significantly more substantial financial remedy is now awarded against defaulting public administrations.
The twin case
Meanwhile, in Roccamesta…
Basim Casba worked for six years in the archive of the Municipality of Roccamesta under an unbroken series of fixed-term contracts, signed without any guarantee of permanent employment. The mayor, Ottavio Perdoni, repeatedly reassured the employee regarding future permanent appointment, despite knowing that the municipal budget could not support new hiring. Simultaneously, Gaio Sventura managed a seasonal kiosk on the municipal beach, relying on a prior resolution issued by Mayor Perdoni that extended his concession indefinitely. The situation escalated when Ditta Sempronio & Figli, a catering business, served a formal notice on the Municipality demanding the launch of a public tender for the beach area granted to Gaio Sventura. Basim Casba subsequently consulted Avv. Prudenzia Cavillo, who identified clear evidence of unlawful fixed-term contract abuse in public employment. Meanwhile, Gaio Sventura discovered that his concession title was no longer legally valid. Warning: the practical case is a hypothetical educational reconstruction and does not correspond to real events nor predict their outcome; any reference to real persons or entities is purely coincidental; the analysis is based exclusively on the cited legal sources and constitutes general legal information, not formal legal advice.
Step-by-step analysis
The application of Law no. 166/2024 to the Municipality of Roccamesta case develops through the following step-by-step procedure:
1. Qualification of abuse: the succession of fixed-term contracts signed by Basim Casba exceeds statutory limits for temporary public administration needs, constituting unlawful abuse under Article 36 of Legislative Decree no. 165/2001.
2. Determination of indemnity: Avv. Prudenzia Cavillo will seek judicial application of the new statutory range of 4 to 24 months' salary, requesting the upper limit given the duration of the temporary employment.
3. Disapplication of administrative extensions: regarding Gaio Sventura's concession, the Municipality of Roccamesta must disapply Mayor Perdoni's resolution due to non-compliance with EU law, scheduling the public tender within the 2027 statutory deadlines.
4. Valuation of investments: Gaio Sventura must document and certify investments made over the preceding five years to calculate the compensation that the incoming concessionaire, Ditta Sempronio & Figli, will be required to pay upon winning the tender.
Possible outcomes
1. Judgment against the Municipality: Judge Giusto Gavelio will award Basim Casba a compensatory indemnity equal to 18 months' salary, establishing the seriousness of the violation while denying the maximum statutory cap due to lack of proof regarding loss of chance.
2. Launch of the public tender procedure: the Municipality of Roccamesta will issue a public tender for the maritime concession; Gaio Sventura will be eligible to participate, potentially taking advantage of scoring criteria based on professional experience, without any guarantee of automatic selection.
3. Payment of compensation to the outgoing concessionaire: if the contract is awarded to Ditta Sempronio & Figli, Gaio Sventura will receive a sum based on certified unamortized investments, mitigating the financial impact of losing the concession.
From the twin case to the real case
The hypothetical case of Roccamesta reflects the structural tension that led to the Infringement Decree: the need to balance legitimate private expectations with the transparency and competition principles mandated by EU law. The adoption of Law no. 166/2024 demonstrates Italy's effort to conclude a period of regulatory uncertainty that adversely affected worker rights and legal certainty for investors in state concessions. Although the law is now fully in force, practical implementation challenges remain for local municipalities, alongside the audit of compensation mechanics by the accounting judiciary. The governing principle emerging from this reform is the primacy of European Union law whenever national legislation compromises free competition or baseline employment protections.
Meet the cast of the columnGaio Sventura and the other inhabitants of Roccamesta return in every practical case.Read their stories
Analysis drafted and verified with edit.legal
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What it teaches professionals
1. Verification of administrative act legality: legal practitioners must verify whether municipal extension decisions comply with the September 30, 2027 deadline, advising clients against reliance on administrative measures passed contra legem.
2. Documentation and expert valuation of investments: for outgoing concessionaires, it is essential to obtain a sworn expert report detailing investments made in the preceding five years, as this documentation serves as the sole reliable basis for establishing compensation upon takeover.
3. Litigation strategy in public sector claims: in disputes concerning fixed-term contract abuse in public employment, claimants' counsel must present evidence of additional loss to surpass the 4-month statutory minimum, while public entities must adjust budgetary reserves to cover potential awards reaching up to 24 months' salary.

References: Legge 14 novembre 2024, n. 166Decreto-Legge 16 settembre 2024, n. 131D.Lgs. 30 marzo 2001, n. 165Direttiva 2006/123/CE (Bolkestein)Direttiva 2005/36/CE

Editorial oversight: Avv. Federico Papa·ICAMUpdated 10 November 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction

Frequently asked questions

What happens if my Municipality does not launch the beach tender by 2027?

Existing concessions will cease to have effect on September 30, 2027, regardless. Municipal inaction may result in administrative substitution mechanisms, third-party legal challenges, and potential municipal liability for breach of EU law obligations.

I am a precarious PA worker; can I request permanent employment under the new law?

No. In the public sector, Article 97 of the Constitution mandates a public competitive examination for permanent appointments. However, Law no. 166/2024 significantly enhances financial protection, allowing workers to claim up to 24 months' salary in cases of unlawful contract repetition.

Who pays the compensation to the old beach club manager?

The indemnity obligation rests solely on the new concessionaire who takes over following the tender procedure, based on the statutory calculation parameters regarding unamortized investments.