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03.062011

Court of Cassation: indemnity in lieu of unused vacations is considered compensation for damages

Court of Cassation, with sentence no. 10341 of May 11, 2011, stated that indemnity in lieu of unused vacations and weekly rests is not considered as item of salary but compensation for damages. Therefore it is subject to the ordinary prescription of 10 years which runs during the employment as well. Indeed, the indemnity is related to a contractual non-fulfillment of the employer, this obliging him to the compensation for damages in the case of the specific fulfillment has became impossible.