Collective dismissal: compensatory indemnity for failure to clarify selection criteria

The Court of Cassation with judgement No. 19320 published on 29 September 2016, stated that concerning a collective dismissal the violation of Article 4, paragraph 9 of Law 223/1991, on failure to clarify the factual assumptions on the basis of which the employees to be dismissed were selected, was merely a matter of form. It follows that, according to the Supreme Court of Cassation, pursuant to paragraph 3 of Article 5 of Law 223/1991, in such a case, an employee is entitled to receive only the all-inclusive compensatory indemnity ranging between a minimum of 12 and a maximum of 24 monthly payments from the actual final remuneration received, and not the reintegration in the workplace as well. The latter, in the opinion of the Supreme Court of Cassation, is due only in the event of selection criteria violation. The law principle affirmed by the Supreme Court of Cassation represents the proper application of the provisions contained in Article 5, paragraph 3 of Law 223/1991 considering the wording of the provision that grants compensatory indemnity in the case of violation of the procedures mentioned in Article 4, paragraph 12 of Law 223/1991 and, therefore, in case of violation of the information referred to in Article 4, paragraph 9 of Law 223/1991.