DISMISSALS FOR ECONOMIC GROUNDS AND REINSTATEMENT

Article 3, paragraph 1 of Legislative Decree no. 23/15 establishes that if it is ascertained that the grounds do not exist for dismissal for justified objective motive ”the judge declares the employment terminated on the date of dismissal” and sentences the employer to pay an indemnity equal to two months salary of the last remuneration for the calculation of post-employment benefits for each year of seniority at the company, with a minimum limit of 4 months and maximum limit of 24 months salary. It should be noted that in terms of dismissal for justified objective reason, the law contains an reinstatement obligation, whereby the employer must prove the absence within its organisation of alternative positions for workers who are dismissed due to elimination of their jobs. According to some commenters, this legal position should no longer be applicable for cases of dismissal of workers hired with the so-called contract with increased protection based on seniority and consequently, the reinstatement obligation should only be applicable in cases where the applicable protection is that contained in article 18 of Law 300/70. We feel that it is unlikely that the law will change directions on this, at least for the first years of application of the new regulations.