Reinstatement Returns for Certain Economic Dismissals

CONSTITUTIONAL COURT DECISION | Judgment no. 128/2024

Judgment no. 128/2024, deposited on 16 July, held unconstitutional the “Jobs Act” rule excluding reinstatement for an economic dismissal when the material fact relied upon is found not to exist.

The decision aligned the remedy more closely with disciplinary dismissals in cases of factual non-existence. It did not make reinstatement the ordinary consequence of every defective economic termination.

For a foreign group, the distinction between business rationale and individual fact is crucial. A global restructuring may be genuine, but the Italian selection, role elimination or redeployment analysis can still be factually wrong.

Employers should document the old and new organisation, identify who performs the residual duties and complete a realistic redeployment assessment. The file should explain the actual Italian change, not simply repeat a global announcement.

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