Dismissal for Just Cause: Definition, Consequences, and Examples

Dismissal for just cause is carried out by the company when the employee engages in conduct that severely harms the company’s interests.

Dismissal for just cause is immediate and without notice, resulting in the loss of employment without entitlement to notice compensation or severance indemnity.

According to Article 2119 of the Italian Civil Code, just cause includes:

• Theft
• Acts of violence
• Disreputable behavior
• Failure to comply with company rules or contractual obligations
• Breach of trust with the company

An employee dismissed for just cause may challenge the dismissal before a labor court, which will assess whether the alleged facts are substantiated and whether the penalty is proportionate to the severity of the alleged misconduct.

Before proceeding with a dismissal for just cause, the company must verify the existence of the alleged facts and evaluate whether it is appropriate to first issue a warning or suspension.

What is meant by “dismissal for just cause”?

Just cause and justified objective reasons differ. Dismissal for justified objective reasons relates to objective causes, such as staff reductions, while just cause involves serious contractual violations.

Dismissal for just cause is governed by Article 2119 of the Italian Civil Code, which states:
“Each party may terminate the contract before its expiration if the contract is fixed-term or without notice if the contract is open-ended, in the event of a cause that prevents the continuation, even temporarily, of the relationship. If the contract is open-ended, the worker terminating for just cause is entitled to the indemnity indicated in the second paragraph of the previous article. The bankruptcy of the employer or the compulsory administrative liquidation of the company does not constitute just cause for contract termination.”

This provision applies in cases of serious breaches by the employee that undermine their relationship of trust with the employer. It can therefore be considered the most severe form of dismissal.

In the case of dismissal for just cause, the direct consequences for the employee are, as already specified, the termination of the employment relationship without any obligation of notice by the employer.

Dismissal for Just Cause: Examples

Here are some examples of dismissal for just cause:

1. Theft or Damage
   The theft of company assets, even of minimal value, represents a serious breach of trust between the employer and the employee. Similarly, the intentional damage of company property compromises the company’s economic interests and workplace safety, justifying immediate dismissal.
2. Defamation of the Company
   Speaking negatively about the company or spreading false or defamatory information can cause significant damage to the company’s image and reputation. Such behavior, in addition to damaging relationships with clients and partners, may lead to legal consequences, making dismissal for just cause inevitable.
3. Misuse of Leave under Law 104/92
   A common example of abuse is using leave for personal activities unrelated to assisting the family member for whom the leave was granted. This conduct not only violates the contractual obligation of good faith but can also have serious legal consequences for the employee.
4. Insubordination
   Acts of insubordination include not only the explicit refusal to follow a legitimate order but also aggressive or disrespectful verbal behavior. Such actions undermine the authority of superiors and compromise workplace hierarchy, obstructing the organization’s smooth operation.
5. Violence or Intimidatory Behavior
   The use of physical violence or threats toward colleagues or superiors is unacceptable in any workplace. Such behavior creates an atmosphere of fear and hostility, endangering the safety and well-being of all employees.
6. Unjustified Absence from Work
   Uncommunicated or unauthorized absences disrupt the normal flow of company activities and may cause organizational difficulties. When repeated, this behavior demonstrates disrespect toward the company and colleagues, constituting just cause for dismissal.

Dismissal for Just Cause and NASpI

The unemployment benefit introduced for all cases of involuntary unemployment, known as NASpI, is available to all employees who involuntarily lose their jobs. In particular, the following requirements must be met:

• Involuntary job loss: This benefit does not apply in cases of voluntary resignation (except for resignation for just cause) or mutual termination of the employment relationship.
• Contribution requirement: At least 13 weeks of contributions must have been paid to INPS in the four years preceding the termination of the employment relationship.
• Work requirement: The worker must have performed at least 30 days of actual work in the 12 months prior to unemployment.

NASpI, therefore, also applies in the case of dismissal for just cause, as it involves employees who involuntarily lost their jobs.

If I am dismissed for just cause, am I entitled to TFR?

Yes: the TFR (severance pay) is owed to the employee at the end of their employment relationship, regardless of the reason for its termination, including dismissal for just cause.

Does dismissal for just cause leave a record?

The reasons for dismissal are not recorded anywhere and are not included in the professional profile maintained by the employment center.

Additionally, the company cannot request the employee’s criminal record to verify whether they were dismissed for reasons related to the commission of crimes, unless provided for by the national collective labor agreement.

How to Challenge Dismissal for Just Cause

An employee who believes their dismissal for just cause is unjustified can challenge it by filing a claim with the labor court within 60 days of receiving the dismissal notice. It is crucial to provide evidence and documentation demonstrating the absence of a genuine just cause or procedural irregularities.

Possible Outcomes
The court may issue different decisions based on the severity of the violations and the circumstances of the case. These include:

1. Reinstatement: The court may order the employee’s reinstatement, especially if the dismissal is found to be discriminatory or without valid justification. In this case, the employer is obligated to restore the employment relationship.
2. Economic Compensation: If reinstatement is not deemed possible or appropriate, the court may order financial compensation. The amount depends on the worker’s seniority, salary, and the company’s size.

Pre- and Post-Jobs Act Protections

Worker protections vary depending on the hiring date:

• Workers hired before March 7, 2015 (pre-Jobs Act): These employees benefit from the protections of Article 18 of the Workers’ Statute, which include reinstatement and compensation.
• Workers hired after March 7, 2015 (post-Jobs Act): These employees are subject to the regime established by Legislative Decree No. 23/2015, which limits reinstatement to cases of discriminatory or null dismissals. In cases of unlawful dismissal, compensation is calculated based on length of service, ranging from a minimum of 3 months to a maximum of 24 months’ salary.

These differences highlight the importance of carefully evaluating the circumstances of each dismissal for just cause, considering the legal context and applicable protections.