Categories: Insights, Publications · News, Publications

Tag: indennità sostitutiva delle ferie


7 Sep 2022

Untaken leave is lost if the worker does not comply with the employer’s invitation to take it (Norme & Tributi Plus Diritto of Il Sole 24 Ore, 7 September 2022 – Alberto De Luca, Luca Cairoli)

In the Court’s interpretation, the right to an allowance in lieu of untaken leave, at the end of the
employment relationship, is intrinsically linked to the right to paid annual leave

In its ruling no. 21781/2022, published last 8 July, the Court of Cassation, Labour Section, ruled (along with several other issues on public employment) on a topic widely debated in legal practice and theory, namely the limits on the worker’s right to receive an allowance in lieu of untaken leave upon employment termination. 

The worker’s right to take paid annual leave is under Art. 36, paragraph 3) of our Constitution, which states that leave “cannot be waived.” The right to holidays is further defined in the Italian Civil Code, Art. 2109 and in Legislative Decree no. 66 of 8/4/2003, which confirm the impossibility to waive the right to paid leave and its unexchangeability with a monetary compensation in lieu, except upon employment termination. 

For a better understanding of the ruling, which concerns an employment relationship with a public administration, it is necessary to mention Art. 5, paragraph 8, of Decree Law  no. 95 of 6 July 2012, converted with amendments into Law no. 135 of 7 August 2012, according to which holidays, rest days and leaves of absence due to public administration personnel included in its consolidated statement of income are compulsorily taken and do not give rise to the payment of compensation in lieu, even in employment termination cases. 

A case submitted to the Supreme Court involved the Abruzzo Region and an employee who, at first instance, obtained from the Court of Labour of L’Aquila the granting of her request to ascertain the subordinate nature of her employment relationship with the Region under a series of continuative and coordinated service contracts between 2002 and 2010, and the payment of differences in salary. 

The Court of Appeal of L’Aquila, reforming the ruling under appeal, deducted from the differences in remuneration paid by the Court of First Instance, the amount calculated as compensation in lieu of holidays and leave not taken by the employee. 

In justifying its decision, the local court, referred to Court of Cassation case law (Court of Cassation ruling no. 10701/2015; Court of Cassation ruling no. 8791/2015 and Court of Cassation, ruling no. 4855/2014) and stated that there is a twofold burden of proof incumbent on a worker who takes legal action to request payment of compensation in lieu of untaken leave. This must prove that: (i) the work performance was carried out on the days set aside for leave; (ii) failure to take leave was due to exceptional and justified service requirements or force majeure. 

The decision of the Court of Appeal of L’Aquila, as stated in the ruling, appears to be in line with established case law, under which a worker who takes legal action to request payment of the compensation in lieu of untaken leave has the burden of proving that they worked on the days set aside for such leave. This is because the performance of additional work to the normal annual work constitutes grounds for the above compensation. In contrast, the burden of proving the payment rests with the employer (Civil Court of Cassation, labour section, 26 May 2020, no. 9791; Civil cassation, labour section, 6 April 2020, no. 7696). 

Continue reading the full version published in Norme & Tributi Plus Diritto of Il Sole 24 Ore.

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…