COURT OF CASSATION, 16 MARCH 2015, NO. 5173: DISMISSAL FOR JUSTIFIED REASON ONLY FOR UNFAVOURABLE AND NOT CONTINGENT SITUATIONS

With its ruling no. 5173 of 16 March 2015, the Cassation Court returned to propose an interpretation, regarding the grounds for dismissal for justified reason which are not expressly contained in the law. Article 3 of Italian Law no. 604 of 1966 provides the following definition: “Dismissal for justified reason with notice is determined (…) by reasons connected with production activity, organisation of work and its regular functioning”. With its ruling the Court of Cassation goes beyond compliance with the requirements of the law, adding an additional element: “(…) dismissal for justified reason (…) is determined not by a generic downsizing of the company’s activity, but by the need to proceed to eliminate the job (…) which cannot be merely instrumental for an increase of profit, but must be aimed at facing unfavourable and not contingent situations.” The above principle, which the law of the Supreme Court had already upheld in the past and which is again proposing, we feel may be in conflict with the constitutional principle of free economic activity and the consequent unchallengeable nature of company decisions.