Italy: Constitutional Court rejects one the Jobs Act’s flagship measures and returns more leeway to judges for setting compensation in cases of unfair employment dismissal

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

At the end of June, Italy’s Constitutional Court examined the constitutional questions raised by the courts of Bari and Rome over the criteria used to determine the severance pay due to workers who were hired under the ‘rising levels of employment protection contract’ after March 2015 and who were subsequently individually and unfairly dismissed. In a statement preceding the submission of its ruling, the Constitutional Court stated that it considers the fact of basing the compensation payment on an ‘amount equal to one month of the last reference salary (…) for each year of service,’ to be unconstitutional because it is a ‘rigid and automatic criterion, solely linked to the element of seniority.’ The Constitutional Court thus confirmed its previous 2018 judgment of 2018 (c.f. article No. 10893) and as such dismantles one of the key points of the 2015 Jobs Act, which was intended to facilitate individual dismissals, by effectively eliminating the possibility of reinstatement and by providing for a predetermined compensation payment. As the Italian daily publication Il Sole 24 Ore of 01 July points out, “the real departure of the reform (Ed. note: Jobs Act) was indeed this: the company, at the time of the employment termination and before the judge’s decision, was able to work out using a simple mathematical formula how much compensation would be due to the worker in case the decision (Ed. note: the employment termination decision) was found to be illegitimate, and without any discretionary intervention by the judge”. This separation that the Jobs Act had introduced now seems to be definitively compromised. Several other courts have also referred to the Constitutional Court to determine whether the “indefinite employment contract with rising levels of protection” is discriminatory in the case of collective redundancies (c.f. article No. 11531).

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
EU: insurance sector social partners commit to addressing violence and harassment at work
The news. The trade union UNI Europa Finance and the employers’ federations Insurance Europe, Amice and Bipar signed an addendum to their 2022 joint declaration on diversity and inclusion on...
18 September 2026
Juliette Baudry (Boiron): “An intergenerational mechanism to better accommodate different life stages”
Since 1 September 2026, employees of the pharmaceutical group Boiron (1,700 employees in France) have benefited from a “key life moments account”. Resulting from an agreement signed last February...
18 September 2026
France: final document on the work of the Labour, Employment and Pensions Conference
After six months of discussions between French social partners, the guarantors of the Labour, Employment and Pensions Conference submitted the conclusions of the discussions to the Prime Minister...
17 September 2026
EU: Commission proposes a list of worker-related criteria for public procurement
The news. On 9 September, the European Commission published a proposal for a regulation aimed at unifying European public procurement law, which accounts for 15% of European GDP. It is notably set...
17 September 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
United Kingdom: government launches consultation on AI and data protection rules
L’info. Le gouvernement britannique a lancé, du 15 juillet au 9 septembre 2026, une consultation afin d’identifier les dispositifs juridiques, techniques et de gouvernance...
28 August 2026
2
EU: social partners set out position on guidelines for the sustainability due diligence directive
The news. Following the final adoption of the omnibus directive in February, the European Commission launched a consultation in June aimed at guiding it in drafting guidelines on the application...
28 August 2026
3
Import bans on forced labor products are multiplying
Under pressure from new US tariffs, many countries have presented texts in recent weeks to ban the import of products made with forced labor. A real breakthrough for workers' rights or a mere...
9 September 2026
4
Canada: a sustainability due diligence proposal on forced labour submitted for consultation
The facts. On July 27, the Canadian government launched a consultation to introduce mandatory corporate due diligence measures regarding forced labor. It plans to require risk identification, the...
25 August 2026
5
Germany: a “simplification” proposal for the Corporate Governance Code
In early August, the Government Commission presented proposals to reform the Deutscher Corporate Governance Kodex (DCGK), Germany’s Corporate Governance Code. The proposals are primarily aimed at...
31 August 2026
6
Slovakia: a bill to “clarify” personal data protection measures
The news. The Slovak government approved a bill on personal data protection on August 26, 2026. This text aims to clarify existing regulations regarding employees’ rights and...
7 September 2026