Categories: Insights

7 Apr 2011

The severance pay is warranted even if there is not a bankruptcy (Court of Cassation No. 7585/2011)

The Court of Cassation specified that the INPS fund called “Fondo di Garanzia” has to pay the severance pay even if the employer is not bankrupt. The Supreme Court justified this decision considering that the aim of the abovementioned Fund is to replace the employer in case of insolvency in the severance pay payment due to employees or their dependents. The Court, in fact, reminded that Law No. 297/82 provides for the efficacy of the Fund when the employer is not subjected to the bankruptcy law provisions, stating that the Fund has to intervene when "the employer is not subjected to bankruptcy, either for his subjective conditions or for impedimental objective reasons".
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