Calculation of damages
08/04/2015
New Italian Job Act has introduced a new system of calculation of damages for unlawful dismissal: two months’ salary per year worked. Salary underlying the calculation of damages is quantified dividing the month’s salary by 12 and multiplying by the paid months (they can be 13 or 14).
If the employee doesn’t work all the year, the two months’ salary compensation has to be divided by 12 and multiplied by the number of worked months. If the employee works for 15 days, the month is entirely counted; if He works less, the month isn’t computed at all.
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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