The Court of Cassation, with judgment No. 25201 dated 7 December 2016, issued a new judgement on the matter of dismissal for justified objective grounds. In particular, the Court of Cassation noted that Article 3 of Law 604/66 does not require that “adverse situations” or situations entailing “considerable extraordinary expenses” must be invoked as the basis of dismissal for justified objective grounds. Rather, it requires the presence of productive reasons related to the organization of work that may hinder its operation. In this sense, to legitimize this type of dismissal it is sufficient that “the reasons related to the productive activity and the organization of work, among which it is not possible to exclude those aimed at a more efficient management or an increase in profitability of the company, result in an actual organizational change through the suppression of a specific job position“. This interpretation, in fact, does not radically change the regulatory framework established by law 604/66 but, instead, fits perfectly within it, thus giving full effect to the provisions of article 41 of the Constitution which expressly establishes the right of an entrepreneur to create, in the implementation of the business activity, efficiency in the way that is deemed best suited to the management of the enterprise.
