Dismissal: the Italian Supreme Court of Cassation clarifies the difficult distinction between insubordination and “just cause”

The Court of Cassation, in its order no. 18296 of 4 July 2024, ruled that an employee who adopts stubborn attitudes with respect to the company’s business irreparably damages the trust relationship with the employer and may therefore be subject to dismissal.

The Case at issue

The present case specifically involved an employee of an environmental services company, who worked as a driver in charge of transporting waste to treatment centers using large vehicles. The employee had refused to carry out his duties, returning to the company with the vehicle still loaded. This behaviour exposed the employer to potential administrative sanctions and environmental violations, as well as complaints from the municipality, the sole client.

The employee had refused to unload the waste, initially referring to reasons related to delays in unloading the waste and later health reasons.

Despite repeated requests from his superior to proceed with unloading or to wait for a change of driver, the worker returned to the company without having completed the job.

The position of the Court of Appeal

The worker argued that, based on the National Collective Bargaining Agreement for employees of environmental services and the company’s disciplinary Code, insubordination could only be punished with conservative sanctions, such as suspension, limiting dismissal for more serious cases, such as those involving “de facto behaviour”.

The Court of Appeal, reforming the first-instance judgment, determined that the worker’s actions were not simply insubordination but amounted to a serious breach of duty, further complicated by administrative and legal consequences for the company. Such behavior constituted “just cause” for dismissal.

The employee subsequently appealed the judgment to the Supreme Court of Cassation.

The decision of the Court of Cassation

The Court of Cassation stated that in the context of disciplinary dismissal, the notion of insubordination cannot be limited to the refusal to comply with the directives of superiors but includes any behaviour that undermines the execution and proper fulfillment of those directives within the framework of the company’s organization (Cass. No. 13411/2020).

In this case, the Supreme Court considered the employee’s behaviour to be more serious than mere insubordination.

The Court concluded that the employee’s intentional refusal to comply, together with his decision not to wait for the driver change and to return to the company with the load of waste – thereby obstructing waste disposal operations and exposing the employer to possible administrative sanctions – constituted a serious breach of trust and contractual obligations, justifying dismissal for just cause.

In conclusion, the Supreme Court rejected the employee’s appeal, considering the company’s dismissal to be lawful.