Italian courts clarify disciplinary sanctions and public sector compensation

Recent judicial rulings in Italy have addressed key aspects of labor law regarding disciplinary actions and employment stability. A decision by the Court of Catanzaro clarified the limits of a judge's power over disciplinary sanctions. While judges can monitor the legitimacy and proportionality of a sanction, they cannot act as a substitute employer or unilaterally change a penalty to suit their own discretion.

Separately, the Court of Cassation ruled on compensation for public sector employees. In sentence no. 26493, the court affirmed that the stabilization of a worker—transitioning from fixed-term to permanent contracts—does not automatically cancel the right to compensation for previous abuses of successive fixed-term contracts.

Under current regulations following the 2024 reform, judges can award an indemnity ranging from four to 24 monthly salaries based on the severity of the violation and the duration of the precarious employment, provided the worker can demonstrate the damage incurred during their period of instability.