CONSTITUTIONAL COURT DECISION | Judgment no. 118/2025
Judgment no. 118/2025, deposited on 21 July, held unconstitutional the fixed maximum of six months’ salary applicable under the so called “Jobs Act” (Legislative Decree no. 23/2015) to certain unlawful dismissals by employers below the statutory size threshold (i.e.: 15 employees).
The Court considered the rigid ceiling inadequate because it prevented the compensation from reflecting the seriousness and circumstances of the case. The decision increased judicial room to provide an effective and deterrent remedy, while preserving a differentiated regime for small employers.
For foreign businesses, employee numbers can be deceptively complex. The relevant employing entity, group structure, workplace and statutory counting rules must be examined. A small Italian subsidiary should not assume that dismissal risk is immaterial merely because reinstatement is less common.
Before termination, employers should identify the applicable regime, test the reason and procedure and model a range rather than a single capped figure. Settlement authority should reflect the changed exposure, particularly where the dismissal defect is clear.