Italian Supreme Court issues rulings on expropriation and vacation pay

The Italian Supreme Court (Corte di Cassazione) has issued two significant rulings regarding compensation and labor rights.

In a ruling concerning expropriation, the Court specified that the 10% increase in expropriation indemnity, as provided by Presidential Decree no. 327/2001, must be applied automatically by a judge when legal requirements are met. This applies even if the increase causes the total amount to exceed the market value of the property. The case originated from an urban recovery program involving a municipality and private companies, where disputes arose over the valuation of areas subject to expropriation.

In a separate labor law ruling, the Court addressed pay differentials during annual leave. The Court held that any difference between a worker's regular salary and their pay during vacation must be significant enough to act as an effective deterrent against not taking leave. Specifically, the Court ruled that a pay differential of only 3.37% is insufficient to serve as a deterrent, aligning with EU Directive 2003/88, which mandates that workers maintain their ordinary remuneration during annual leave.