Italy: New rules on termination of employment relationships
Italian rules concerning the termination of employment relationships have been recently modified: in particular, the discipline provided for by Section 18 of Law n. 300/1970 (the so-called “Workers’ Statute”) that sets out the cases in which the individual or collective dismissal is considered unlawful.
In accordance with the old provisions, if the Court ruled the dismissal was not justified, the employee had the right to be reinstated and, moreover, to be paid an indemnity equal to the period between the date of the formal dismissal and the date of reinstatement.
According to the new rules (Law 28.6.2012 n. 92) the employees are now entitled to claim for reinstatement, with further payment of an indemnity as above indicated, only in limited cases, such as discriminatory dismissals and dismissals made during motherhood or during the first year of marriage.
For disciplinary dismissals, if the termination is considered unlawful, because of totally inconsistent objections or because the NCLA provides for conservative sanctions against the misconduct, the Court condemns the employer to reinstatement and to pay damages for an amount not exceeding 12 months of the overall actual salary. In all other cases, the Court condemns the employer to pay an indemnity between 12 and 24 months of the overall actual salary.
For economic dismissals, if the objective reasons appear totally inconsistent, the Court can decide whether to condemn the employer to reinstatement and to pay damages (not higher than 12 monthly salary) or, alternatively, to pay an indemnity between 12 and 24 months of the overall actual salary, with no reinstatement.
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