Uncostitutional compensatory allowance for wrongful dismissal

The Constitutional Court has declared the constitutional illegitimacy of Article 3, paragraph 1, of Legislative Decree No. 23/2015 (Jobs Act), in the part in which it determines in a rigid way (2 monthly salary for each year of service) the indemnity due to the employee hired with permanent employment contract with rising protections against unfair dismissal after March 7, 2015 if he/she is unjustifiably dismissed.

The decision, announced in a press release yesterday, September 26, states that the provision of compensatory allowance calculated solely because of the length of service of the employee is contrary to the principles of reasonableness and equality and contrasts with the right and protection of labor established by articles 4 and 35 of the Constitution.

From now on, the judge, starting from a minimum of six and arriving up to a maximum of thirty-six months, will have to establish the indemnity due in case of illegitimate dismissal using different criteria and further compared to the duration of the employment relationship.

We look forward to hearing the text of the sentence announced for the coming weeks.

For any further information please contact our Firm.