PUBLISHED BY Arlati Ghislandi
New regulations upon increasing employment protection now apply

Legislative Decree no. 23 of March 4th, 2015, regulating the reform on termination of employment, has been published on the Official Gazette no. 54 of March 6th, 2015.

Therefore, since March 7th, 2015, for all employees who start an open-ended employment relationship or have a fixed-term employment relationship transformed in an open-ended one, the new regulations on protection against unlawful termination of employment shall apply.

With the exception of unlawful termination due to the non-existence of the fact stated as reason for termination or due to discriminatory reasons, reinstatement in the workplace shall no longer apply, in favor of a certain and increasing compensation, determined according to seniority.

With this new regime, the legislator aims towards a more flexible labor market, making it more desirable for foreign companies. The relevance of compensation and uncertainty of judgment remain however difficult to analyze.