Overview

• The court ruled that the six-month limit on indemnities for wrongful dismissals in firms with fewer than 16 employees violates the constitution
• The decision targets Article 9 of Legislative Decree 23/2015, which also halved compensation amounts for small businesses
• Justices found the rigid cap and reduced rates prevented judges from granting remedies that reflect each case’s severity and deter future abuses
• Judges will henceforth set compensation without a predefined maximum, restoring personalized assessments in unfair dismissal claims
• The ruling calls on parliament to draft new legislation establishing dismissal criteria that go beyond simple headcount thresholds