ITALY Law and Practice Contributed by: Angelo Zambelli, Barbara Grasselli and Alberto Testi, Zambelli & Partners
Employees hired from 7 March 2015: • small companies employing up to 15 employees: (a) the sole remedy applicable would be the pay - ment of an indemnity ranging between three and 18 months’ salary (the previous limit of six months’ salary has become ineffective and is no longer applicable even in pending cases due to the very recent ruling No 118 of 21 July 2025 of the Constitutional Court); • large companies employing more than 15 employ - ees: (a) employees are entitled to be reinstated solely when it is directly proved that the “material fact” upon which the dismissal was based did not occur. (in this case, the reinstatement should be implemented together with the pay - ment of an indemnity up to a maximum amount of 12 months’ salary plus social security con - tributions - in all other cases, the employee will be entitled only to an indemnity, to be estab- lished by the labour court between a minimum of six months’ salary and a maximum of 36 months’ salary. Dismissals for objective justified reasons (redundancy reasons) Employees hired before 7 March 2015: • small companies employing up to 15 employees: (a) the company may be ordered to re-hire the employee with a new employment contract, or pay an indemnity ranging from two and a half to six months’ salary (this indemnity can be increased to up to ten months of salary for an employee with more than ten years of service and up to 14 months of salary as far as employees with twenty or more years of service are concerned, if the company has up to 60 employees in the whole Italian territory and up to 15 employees in a single business unit or more business units within the same municipal - ity (“ Comune ”)); • large companies employing more than 15 employ - ees: (a) if it is determined that the reason for the ter- mination did not occur or is deemed “ground - less,” the employee is entitled to reinstate -
ment and compensation for lost wages, which is capped at 12 months’ salary, along with social security contributions (any earnings the employee received from other sources during this time (aliunde perceptum) or potential earn - ings (aliunde percipiendum) will be deducted from this amount). In all other situations, the employee is entitled to com - pensation ranging from a minimum of 12 months’ sal - • small companies employing up to 15 employees: (a) an employee may be entitled to indemnity with a minimum of three months’ salary and up to a maximum of 18 months’ salary (the previous limit of six months’ salary has become ineffec - tive and is no longer applicable even in pending cases due to the very recent ruling No 118 of 21 July 2025 of the Constitutional Court); • large companies employing more than 15 employ - ees: (a) employees are entitled to be reinstated solely when it is directly proved that the “material fact” upon which the dismissal was based did not occur (in this case, the reinstatement should be implemented together with the pay - ment of an indemnity up to a maximum amount of 12 months’ salary plus social security contributions - in all other cases, an employee can be entitled to at most between six and 36 months’ salary). ary to a maximum of 24 months’ salary. Employees hired from 7 March 2015: If an employer unlawfully dismisses an employee due to their physical unsuitability for work, the employee will be reinstated and compensated for all lost earn - ings from the time of dismissal until reinstatement. This compensation will include a minimum of five months’ salary, with any earnings the employee received from other sources during that period deducted, if appli - cable. Except for the above-mentioned cases, such as retali - atory or discriminatory dismissal, different provisions apply to executives, who, if unlawfully dismissed, are not entitled to reinstatement, but solely to an indem-
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