Categories: Insights, Case Law


23 Jul 2017

The stability pact, its legitimacy and remuneration

With its decision no. 14457/2017, the Court of Cassation turned over the “double conforming” decision of the lower courts and intervened with regard to the stability pact enclosed with the subordinate employment contract. Specifically, the Court observed that, outside the cases of just cause under Art. 2119 of the Italian Civil Code, a worker can freely make use of the right of withdrawal, agreeing to a minimum guaranteed duration of the contract, provided that it is limited in time, which would involve the payment of damages to the employer in the event of a breach thereof. According to the Supreme Court, this conclusion complies with the recognised availability of the right to one’s employment post, that may be inferred from the admissibility of agreed contractual terminations and also from the “consolidation of the effects of an unlawful dismissal due to failure to make a prompt appeal”. In the decision in question, the Court also looked at the remuneration of this “sacrifice” and reached the conclusion that the agreed salary conditions, taken overall, provided that they do not exceed the so-called constitutional minimum, cannot, in any way, compensate for the (even) temporary renunciation of the employee to their right of withdrawal. The remuneration, therefore, must be assessed in the light of the overall agreed contractual conditions, which may consist of the reciprocal nature of the stability commitment or in a different service provided by the employer, such as an increased salary or a non-monetary obligation, provided that it is not just symbolic and it is proportionate to the sacrifice of the worker.

Subscribe to our newsletter

Contact

Need information? Write to us and our team of experts will respond as soon as possible.

Fill in the form

More news and insights

8 Apr 2026

Management of corporate email after termination of employment: the limits according to the Italian Data Protection Authority

The Italian Data Protection Authority (i.e. “Garante per la protezione dei dati personali”) has once again provided guidance on how employers should manage corporate email accounts after the…

8 Apr 2026

Oral dismissal: the burden of proof on the employee

With order no. 4077 of 23 February 2026, the Italian Supreme Court addressed the issue of oral dismissal, holding that an employee challenging the termination of the employment…

8 Apr 2026

DID YOU KNOW THAT… incompatibility between colleagues may justify the transfer of an employee? 

The Italian Supreme Court, with order no. 4198 of 25 February 2026, held that an employee’s transfer may be lawfully implemented also in the presence of a situation…

7 Apr 2026

The boundary between rest and inactivity in the management of working hours (AIDP – HR Online, 7 April 2026 – Vittorio De Luca, Alesia Hima)

In the organizational language of companies, terms such as “breaks,” “waiting times,” or “downtime” are often used. In operational practice, these expressions tend to be treated almost as…

17 Mar 2026

Equal pay: green light for the decree on pay equality and wage transparency (People are People, 16 March 2026 – Claudia Cerbone, Martina De Angeli)

Claudia Cerbone and Martina De Angeli, professionals at the De Luca & Partners firm, author this article dedicated to the draft legislative decree approved last February 5 by…

10 Mar 2026

The transfer of the employee is lawful when there is incompatibility with the company environment (Camera di Commercio Italo-Francese, 10 March 2026 – Vittorio De Luca, Silvia Zulato)

With Order No. 4198 of 25 February 2026, the Italian Supreme Court (Court of Cassation) – Labour Section – reaffirmed that a situation of environmental incompatibility may justify…