LATE DISMISSAL IN ITALY: COMPENSATION OR BACK TO WORK

In cases of late disciplinary dismissal (licenziamento disciplinare tardivo) the Italian Supreme Court “Corte di Cassazione”, has excluded the previous ruling that the worker had to be reintegrated in the workplace.

One of the main requirements for the disciplinary dispute to be valid for dismissal for just cause is its timeliness. In fact, when exercising disciplinary power, the employer must behave in good faith which by Italian standards implies that notice must be communicated in a timely manner.

The reason for the notice to be immediate and timely, is also in order to guarantee the worker’s right to defence.

In cases of late disciplinary notice, a jurisprudential conflict arose in Italy, since some judgments recognised the worker’s right to an indemnity, others ruled that the worker must necessarily be reintegrated in the same workplace.

To clarify the conflict and the confusion regarding the type of sanction to be applied to dismissal after late disciplinary notice, the Supreme Court of Cassation on 27 December 2017 established ruling no. 30985. The Court clarified that in cases of late disciplinary dismissal, the worker need not be reintegrated, but will be entitled to obtain compensation. It should be noted, that in Italy, if the employer does not communicate notice to the employee within the legally recognised period, this will not lead to annulment of the dismissal, but on the basis of the employer’s “lack of good faith”, the worker will have the right to obtain compensation. In conclusion, reintegration can only be applied in the case of unfair dismissal.

If you are working or have been working in Italy and you think you may have the right to be reintegrated or to obtain a higher compensation due to late dismissal or you have further queries on Labour Law, contact our lawyers by filling in the form below