{"id":30526,"date":"2025-09-08T12:29:14","date_gmt":"2025-09-08T10:29:14","guid":{"rendered":"https:\/\/www.bacciardipartners.it\/?p=30526"},"modified":"2025-10-03T16:07:47","modified_gmt":"2025-10-03T14:07:47","slug":"unlawful-dismissals-in-small-businesses","status":"publish","type":"post","link":"https:\/\/mail.bacciardipartners.it\/en\/unlawful-dismissals-in-small-businesses\/","title":{"rendered":"Unlawful dismissals in small businesses: the Constitutional Court declares the compensation cap unconstitutional"},"content":{"rendered":"

By Enzo Bacciardi <\/a>and Michele Sacchi<\/a> \u2013 Labor Law Department<\/a><\/p>\n

With Judgment No. 118 of July 21, 2025<\/strong>, the Constitutional Court declared the partial unconstitutionality of Article 9, paragraph 1, of Legislative Decree No. 23\/2015 (the so-called Jobs Act), insofar as it provided for a maximum compensation cap of six months\u2019 salary<\/strong> for employees unlawfully dismissed by employers with fewer than 15 employees<\/strong>.<\/p>\n

\"Avv.<\/p>\n

What changes with this ruling<\/h2>\n

The Court’s decision has immediate and significant effects: even small or micro employers (including those with only one employee) may now be ordered to pay compensation of up to 18 months\u2019 salary<\/strong> (i.e., half the maximum indemnity threshold provided for employers with more than 15 employees) in cases of unjustified dismissal of workers hired from March 7, 2015, onward.
\nThis ruling does not concern discriminatory or retaliatory dismissals (already covered by stronger protections) but rather unjustified dismissals under Article 3 of the Decree<\/strong>.<\/p>\n

The issue was raised by the Labor Judge at the Court of Livorno, who considered the provision in breach of several constitutional articles: 3 (equality), 4 (right to work), 35 (protection of work), 41 (freedom of enterprise), and 117 (compliance with international obligations, with reference to Article 24 of the European Social Charter).<\/p>\n

Why the provision was declared unconstitutional<\/h2>\n

The Court criticized the excessively narrow range (from 3 to 6 months\u2019 salary), which prevented judges from tailoring compensation based on the actual severity of the case. According to the Court, this system violates constitutional principles because it:<\/p>\n