Italy: judges have significant leeway when setting employment dismissal compensation amounts (in brief)

On 08 November, Italy’s Constitutional Court published the grounds for its ruling of 26 September that reverses measures within the Jobs Act and the Dignity Decree law (c.f. article No. 10787), which address unfair dismissal compensation payments for workers hired after March 2015 under the ‘rising levels of employment protection’ system. According to the court, judges who set compensation amounts will still have to respect the legal bands (between 6 and 36 salary months) but in contrast with what is intended in both legal texts, they will not have to decide exclusively on the basis of career length. Additional required criteria include the number of employees within the company in question, the business being undertaken by the company in question, and the parties’ ‘behaviour and conditions.’ The Constitutional Court stated that only taking career length into account ran counter to the principle of equality and did not take into account the need to tailor specific individual worker compensation. One of the perverse consequences of the decision is that employment contracts concluded under the ‘rising levels of employment protection’ system that was designed to facilitate redundancies, has become more advantageous for unfairly dismissed workers, compared with the traditional Article 18 from the Workers Statute. Unfairly dismissed employees who were hired before March 2015 in companies employing more than 15 staff can either be re-instated in their former job role (something that is become increasingly less frequent), or receive much lower levels of compensation (with the maximum ranging between 15 and 24 months of salary, depending on the particular case).
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Access the ruling here (in Italian)

Planet Labor, 13 November 2018, nº10892 – www.planetlabor.com

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
Italy: artificial Intelligence on the menu of Barilla’s new company agreement
Prior consultation with trade unions on innovations related to artificial intelligence, strengthened training, and progress on parenthood: these are the main new features of the agreement signed...
2 September 2026
2
Italy: Enel signs agreement to manage the effects of AI on work
An agreement signed at the end of July by the electricity company Enel (31,000 employees) and the unions Filctem-Cgil, Flaei-Cisl, and Uiltec is pioneering in the Italian energy sector. It aims to...
7 September 2026
3
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
4
Germany: a high-tension start to the social and political year
The German government must finalize its major reforms (pension funding, corporate competitiveness, and labor law) while the chancellor’s popularity hits an all-time low and three regional...
5
Sweden: IF Metall union forced to end industrial dispute with Tesla
The news. After three years of conflict, the Swedish union IF Metall announced it would suspend its strike actions against Tesla starting Wednesday, August 19, after the American automaker...
6
United Kingdom: trade unions can now use electronic and workplace voting
The news. The provisions of the UK Employment Rights Act 2025 authorising electronic and workplace voting for trade union ballots came into force on Tuesday, 25 August. They apply to trade union...