Labour Law and AI

European Employment Insights – April 2026

European professionals from Andersen, active across more than 20 jurisdictions, have contributed to the latest Employment Insights Newsletter, providing a structured overview of the main developments in employment law at the European level. The contribution analyzes the most recent legislative updates, guidelines, case law trends, and developments in collective bargaining across different national contexts.

Among the most significant developments, for example, is the recent reform introduced in Greece, which establishes stricter criteria for access to arbitration in collective labor disputes. This measure is part of a broader process aimed at rationalizing dispute resolution mechanisms, with the objective of simplifying and improving the efficiency of conflict management between social partners.

To read the full newsletter, click here.

The Legal Profession in the Age of Artificial Intelligence

In this issue, Uberto Percivalle, Partner at Andersen in Italy, analyzes the impact of artificial intelligence on legal practice together with Cian Moriarty, Partner at Philip Lee LLP, a collaborating firm in Ireland. The discussion focuses in particular on the evolving expectations of the market and the redefinition of the relationship between professionals and clients in light of the adoption of these technologies.

From the perspective of the Irish market, Moriarty highlights how law firms in Dublin are adopting a gradual and cautious approach, based on an initial phase of testing. At this stage, artificial intelligence is not perceived as a structural threat, but rather as a potential enabling factor. The value of the trusted relationship between lawyer and client remains central—an element that, at present, cannot be replicated by automated solutions.

The most significant impact is expected on an operational and economic level. In particular, increasing pressure on fees and turnaround times is anticipated: on the one hand, clients will demand greater efficiency and faster responses; on the other, the market may shift toward lower fees, consistent with productivity gains enabled by AI. In this context, the real challenge for law firms will be to integrate technology as a tool to enhance skills, rather than using it as a substitute or a shortcut to bypass learning processes.

However, significant risk profiles remain. Artificial intelligence does not guarantee the accuracy of generated responses, nor the full confidentiality of processed information. For this reason, the adoption of structured internal policies and appropriate usage protocols becomes essential. These tools will be crucial not only to mitigate risks, but also to support the evolution of firms’ organizational infrastructure, ultimately improving the quality of legal advisory services in a sustainable way.

Italy: Employment Law Between Incentives, Flexibility, and New Protections

For Italy, Uberto Percivalle, Partner and Head of the Employment & Labor service line, analyzed the main developments in employment law, with particular focus on recent updates regarding dismissal for repeated illness and business transfers.

Blocking Unlawful Employee Monitoring Practices

On 24 February 2026, the Data Protection Authority intervened against one of the leading global e-commerce platforms, ordering the suspension of tracking activities related to conversations between managers and employees. These practices included the recording of sensitive details such as participation in strikes and information concerning employees’ personal and family situations.

The company stated that the purpose of collecting such data was solely to support regular and effective internal communication. Nevertheless, due to the sensitive nature of the data and its prolonged retention, the Authority deemed the practice excessively intrusive and in violation of privacy principles.

Wage Integration Schemes

INPS clarified that the provisions of the 2026 Budget Law and two scenarios in which wage integration schemes may be financed in the event of plant closures: first, where there are concrete and viable prospects for the transfer of business activities to ensure continuity; and second, where there are realistic prospects for recovering a significant number of jobs (at least 70% of redundancies).

Dismissal for Repeated Illness

With judgment no. 5469 of 11 March 2026, the Court of Cassation ruled that an employer cannot rely on organizational reasons to justify dismissal while the employee is on sick leave, even in cases of poor performance. In the case examined, a worker frequently absent due to illness during night shifts caused organizational difficulties. The Court held that dismissal for repeated absences is only permissible after the expiration of the statutory sick leave period (so-called “period of comporto”).

Severance Pay and Damages in Business Transfers

In judgment no. 4665 of 2 March 2026, the Court of Cassation addressed a case involving the transfer of part of a company’s business that was later declared null by a court, resulting in the reinstatement of the transferred employee. The employee, who had been dismissed in the meantime and received severance pay, subsequently claimed damages. Although the lower court had offset the damages against the severance payment, the Court of Cassation ruled that such compensation is not admissible, as the two payments arise from different legal grounds: severance from dismissal, and damages from the unlawful transfer.

Employer Liability for Workplace Safety Despite Employee Conduct

The Court of Cassation also examined a workplace accident involving an employee injured while cleaning a rotating mechanism without stopping it, contrary to instructions received. The Court reaffirmed the established principle that employers may still be held liable even when employees violate instructions, unless the conduct is entirely abnormal or unforeseeable. Employers remain responsible where adequate measures have not been implemented to prevent or mitigate all foreseeable risks.