DLP Insights

Unlawful dismissal for reduction of costs if the employer does not demonstrate the effectiveness of the downsizing

27 Mar 2017

The Court of Cassation with judgement No. 5323 dated 2 March 2017, expressed once again its opinion on the lawfulness of dismissal for objective just cause in order to define its contents and limitations. In the specific case, an administration clerk challenged his dismissal, ordered for a needed corporate cost reduction. The Company, even if it had proven in court of having lost several calls for tender and to be in a position of weakness respect to its competitors, failed to discharge the burden of proof concerning the effectiveness of the functional downsizing of the corporate organizational setup with related removal of the position held by the worker. The Court of Cassation, with the judgement in hand, in rejecting the appeal submitted by the Company, confirmed the correctness of both trial judgements that had verified the failure to prove the justified objective reason [for the dismissal], failure of proof that was sufficient to determine the unlawfulness of the termination.

Italian Court of Cassation: second dismissal lawful pending judgment on the first

30 Jan 2024

In its very recent judgment no. 2274 of 23 January 2024, the Italian Court of Cassation ruled that it is lawful for an employer to give notice of a second dismissal pending a judgment concerning a previous dismissal based on different grounds. However, the second dismissal has no effect if the first dismissal is declared ....

Liability under Italian Legislative Decree no. 231/2001: obtaining minimal advantage does not exempt the employer

29 Dec 2023

With judgment no. 39129 of 26 September 2023, the Italian Court of Cassation, Third Criminal Division addressed the issue of corporate administrative liability under Italian Legislative Decree no. 231/2001, stating that “corporate administrative liability is not excluded in the light of the minimal advantage or the insignificance of the interest pursued.” The facts of the ....

Dismissal to reduce costs: what does the employer need to prove?

29 Dec 2023

With Order no. 31660 of 14 November 2023, the Italian Court of Cassation ruled that, when dismissal for justified objective reason (giustificato motivo oggettivo, ‘GMO’) is to reduce costs, the burden is on the employer to indicate the reasons why the particular worker has been chosen. The facts of the case The employee appealed the ....

Italian Court of Cassation: assessment of CCNL job descriptions essential for repêchage (obligation to relocate)

28 Nov 2023

By Order of 13 November 2023, no. 31561, the Italian Court of Cassation ruled that, to fully comply with the repêchage obligation (obligation to relocate), it is necessary to assess whether hires made following the termination for justified objective reasons are of the same level of classification as the dismissed employee. The facts of the ....