Redundancy
04/04/2015
According to new Italian job act, if a redundancy is judged unlawful, employees hired after February 2015 get a compensation quantified in two months' salary per year worked, from the minimum of four months, to the maximum of twenty-four months.New employees can’t obtain reinstatement anymore. The amount of compensation isn’t reduced, if the dismissed employee finds another job, meanwhile.
Employees hired before February 2015 continue to have protection under art. 18 of act n. 300/1970: they can sue to be reinstated in their jobs, if economic reasons don’t exist manifestly, or for damages (from 12 to 24 month’ salary).
The concept of redundancy is the same as before: it hasn’t been changed by new rules.
In Italy, employees were protected by art. 18 of act n. 300/1970 (usually called “employees statue”), until 2014: workers unjustly fired could sue their employer for being reinstated to their job and for damages (salaries from firing to reinstating). So, if the judge had declared unlawful dismissal, companies had to pay years of salary and social security contribution, even if they didn’t’ get any job performance by fired employees (Italian trials were really slow). From 2015, this won’t happen anymore. In case of unlawful dismissal, employers will only have to pay damages to workers. This compensation will be reasonable: from 4 to 24 months of salary (2 months per year of working). Employees won’t have the right to be reinstated to their job, except for specific situations. So, if he doesn’t appreciate the worker, the employer won’t be obliged to readmit him in his company (except for racial, political and religious discrimination). According to new acts, civil trials are faster, thanks to their computerization. Now payment orders can be issued in a few days. Before, it took several months. Besides, debtors that refuse payments are obliged to pay default interest of 9%. So they have no incentive to delay payments: this would be too expensive. Creditors can ask the court for an order to search in public records debtor’s goods and current accounts to be attached (now access to records is allowed only to specialized agencies) . This new procedural instrument allows to attack debtor's assets more easily. Creditors will be satisfied effectively and more quickly. In this section of the website, we are going to show all this brandnew rules.
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