Categories: Insights, Case Law


27 May 2018

Lawful dismissal for justified objective reasons not based on an economic crisis

The Court of Cassation, with judgement No. 9127 dated 12 April 2018 reviewed the case of dismissal for justified objective reasons not supported by a negative economic trend. In this case, the judges reviewing the case had deemed the employer’s dismissal unlawful because “the unfavourable situations were not such as to have a decisive influence on the normal productive activity of the sector“. The judges, on the other hand, pointed out that – although it was not possible to acknowledge the presence of a negative economic trend within the company and sector of the employer – it was unquestionable that the latter had indeed led to a corporate reorganisation, aimed at improving production efficiency and organisation, and therefore the suppression of the position of the dismissed employee. In light of this fact, the Supreme Court decided to transfer the case for judgement to the Court of Appeals having jurisdiction. Basically, in a dismissal for justified objective reasons a negative economic trend of the company does not represent a factual condition that the employer must prove, being sufficient the existence of reasons tied to productivity and business organisation such as to determine the effective removal of a specific job position. Moreover, from the reasoning of the Court it emerges that these reasons may include reasons aimed at a better managerial or productive efficiency or an increase in the profitability of the company. This is because, pursuant to art. 41 of the Constitution, the choice of the employer cannot be judged in terms of adequacy and appropriateness.

Subscribe to our newsletter

Contact

Need information? Write to us and our team of experts will respond as soon as possible.

Fill in the form

More news and insights

17 Mar 2026

Equal pay: green light for the decree on pay equality and wage transparency (People are People, 16 marzo 2026 – Claudia Cerbone, Martina De Angeli)

Claudia Cerbone and Martina De Angeli, professionals at the De Luca & Partners firm, author this article dedicated to the draft legislative decree approved last February 5 by…

16 Mar 2026

Illegitimacy of staff leasing due to violation of the principle of temporariness (Top 24 Lavoro, 27 febbraio 2026 – Vittorio De Luca, Alessandra Zilla)

With judgment no. 4493 of December 19, 2025, the Court of Milan addressed the issue of indefinite-term labor supply (so-called staff leasing). In particular, the Court clarified that,…

10 Mar 2026

The transfer of the employee is lawful when there is incompatibility with the company environment (Camera di Commercio Italo-Francese, 10 marzo 2026 – Vittorio De Luca, Silvia Zulato)

With Order No. 4198 of 25 February 2026, the Italian Supreme Court (Court of Cassation) – Labour Section – reaffirmed that a situation of environmental incompatibility may justify…

3 Mar 2026

Employee monitoring: when “bossware” becomes a legal risk (Agenda Digitale, 2 marzo 2026 – Martina De Angeli)

Monitoring workers through digital tools is a rapidly expanding practice, accelerated by the spread of remote work and the digital transformation of companies. Before adopting these systems, however,…

3 Mar 2026

Melismelis signs the campaign for the 50th anniversary of De Luca & Partners

For the historic labor law firm, the agency developed the 50th-anniversary logo and advertising campaign, managed online and offline media planning, and renewed the website’s visual identity. Milan,…

27 Feb 2026

Dismissals: the Corte costituzionale grants broader discretion to judges and greater scope for reinstatement (I Focus del Sole 24 Ore, 26 febbraio 2026 – Vittorio De Luca e Alessandra Zilla)

The regulation of dismissals continues to represent one of the central pillars of Italian labour law, an area of constant tension between freedom of economic initiative and the…