The Court of Cassation’s change of direction about individual dismissal in proper circumstances

The Court of Cassation, with the judgment n. 13015/2017 confirms and sustains a recent orientation (Cass. n. 13516/2016, Cass. n. 19185/2016 and Cass. n. 13516/2016) that it considers, in stark contrast to the previous guidelines, the individual dismissal in proper circumstances even if it is indicated by a company in a good economic condition, legitimate. That happens when the company wants to proceed with a reorganization of work determined by the desire to increase the profits improving productivity. But only on the basis that the reorganisation plan decided by the entrepreneur is real and not a pretext.

On the contrary, in the past (Cass. n. 21282/2006 and Cass. n. 3899/2011), the main orientation considered dismissal of the employee for organisational and economic reasons justified only if it was the only solution (extrema ratio with jurists’ language). This solution must be able to respond to a serious Company or market crisis that requires a drastic and permanent cost reduction.

Now, in the above-mentioned decision, the Court of Cassation given that L. 604/1966 does not require additional case-law requirements, considers the dismissal for economic reasons legitimate even though implemented as a measure for the reaching of a further increase in existing profits.

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