Space to dismissal for “competitiveness” – The Sun 24 Hours

The legality of the dismissal for justified objective reason is not conditioned by the need to cope with a negative economic trend or fall from substantial expenditure of an extraordinary nature, being able to the company reorganization have been legitimately determined by the objective of safeguarding the competitiveness in the sector in which the company operates.

In this context, continues the Court of cassation with judgment no. 25201 December 7, 2016, it is legitimate to withdrawal employer, justified by the technical need to make it more streamlined chain of command, without which the basis of the measure there has to be a downturn and not merely contingent, that adversely affect the normal production activities. The case concerned was related to the dismissal of the chief operating officer of a firm that had effectively suppressed the position to eliminate a link in the chain of command and to make sure, then, a business management more streamlined. On appeal, the dismissal was deemed illegitimate, as it was the burden of the employer to provide the demonstration that the reorganization of the production was pursued with the purpose of dealing with a bad situation, and not merely contingent, or, alternatively, to incur considerable expenses of an extraordinary nature.

The Supreme court said that the seniority of an economic and financial crisis or another strongly negative, such as to condition the continuation of the business activity, does not constitute a precondition to the dismissal for justified objective reason has to be fixed.
The Court recalls the previous rulings that merge the address to which the dismissal for objective justified reason must be justified by the need to cope with unfavorable situations, but gives, however, act also to a second orientation, according to which the reasons for production pursuant to article 3 of the law 604/66 at the base of the dismissal presupposes a reorganisation or a restructuring of the company, but are not closely related to a purpose that is directed to limit the effects of the economic and financial crisis.

The Supreme court the bride this address and highlights that the reasons inherent in the production activity or the organization of the work may be the most diverse, you can reduce those that presuppose the need to tackle unfavourable situations. An interpretation of opposite sign, add the judges of legitimacy, stands in contrast with the constitutional precept that protection of the economic initiative and freedom of enterprise, where autonomy ends up being hopelessly compressed in the case in which the decision employer to reduce the workforce should submit to the pre-existence of a corporate crisis or an unfavorable condition of the market.

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