(Disclaimer: This article provides a brief overview for initial guidance purposes only and should not be considered legal advice. Given the complexity and specific nuances of Italian labor law, particularly in collective dismissal procedures, specialized advice from qualified labor attorneys or consulenti del lavoro (certified labor consultants specializing in payroll, social security, and administrative labor compliance) is essential for any specific case or decision-making process.)
Italian law, specifically Law No. 223 of July 23, 1991 (as amended), stipulates that a collective dismissal occurs when an employer with more than 15 employees intends to terminate at least five employment contracts within a 120-day period in the same province, due to restructuring or personnel reduction. This procedure also applies, under specific conditions, when an employer utilizing the Cassa Integrazione Guadagni Straordinaria (CIGS) is unable to redeploy suspended personnel. The process is rigorously regulated by national legislation and applicable European Union directives.
Initiation of the Procedure: Notification.
The process formally begins with a written notification to the relevant trade unions, or, in their absence, to nationally representative union organizations and the competent regional labor authority (e.g., the Regional Labour Office or the Ministry of Labour). This notice must meticulously detail the rationale for the planned redundancies, the precise number and categories of affected employees, the geographical scope of the action, and the proposed timeline. Where applicable, the employer is also obligated to provide a clear explanation as to why alternative measures cannot resolve the workforce surplus
Phase 1: Union Consultation (Esame Congiunto).
Within seven days of the notification, a "concerted examination," or esame congiunto, is initiated between the employer and employee representatives. This critical phase may extend up to 45 days, though this period is shortened to 25 days if fewer than ten dismissals are planned. The primary objective of this dialogue is to thoroughly explore and propose viable alternatives to dismissal. These may include internal redeployments, voluntary resignations coupled with financial incentives, job retraining and relocation programs, part-time arrangements or temporary layoffs, early retirement schemes, or potential outsourcing solutions with robust job protection clauses.
Phase 2: Administrative Mediation
Should no agreement be reached during the initial union-led phase, the process escalates to a second, administrative stage. The matter is formally referred to the regional or national labor authorities, who will then mediate between the employer and the unions within an additional 30-day period (or 15 days if fewer than ten dismissals are planned).
Selection Criteria and Repechage Obligation
Throughout both consultation phases, employers are strictly required to apply objective and non-discriminatory selection criteria. These typically encompass family responsibilities, seniority, and technical or organizational requirements, as either agreed through collective bargaining or, in its absence, according to statutory rules. For companies utilizing the CIGS scheme, there is an additional legal obligation to attempt internal redeployment, commonly known as repechage, before proceeding with any terminations.
Formalization of Dismissals
Upon the conclusion of the consultation process—whether an agreement has been successfully reached or the statutory time limits have expired—the employer may proceed with formal individual dismissals. Each affected employee must receive written notification, adhering strictly to the legally mandated notice periods. Furthermore, a comprehensive list of all dismissed employees must be submitted to the relevant labor authority within seven days.
Outcome and Social Safeguards
If an agreement is reached at any point during the procedure, it is formalized in a legally binding collective agreement. This agreement meticulously outlines the terms of dismissal, any associated social mitigation measures, and agreed safeguards or incentives. The rigorous structure and strict adherence required by this procedure are fundamentally designed to protect workers’ rights, promote viable retraining or redeployment opportunities, and minimize the social impact of workforce reductions, while simultaneously providing employers with a clear, legally compliant, and accountable path for necessary restructuring.