De Luca & Partners

COURT OF BUSTO ARSIZIO: INDEMNITY AND COMPENSATION IN CASE OF VOID TERM

The Court of Busto Arsizio, with sentence no. 528/2010, applied for the first time the provision of Law no. 183/2010 (so called “Collegato Lavoro”) that states, in case of conversion of a fixed-term contract – because of formal and substantial unlawfulness – the sentence of the employer to compensate the employee with “an all-comprehensive indemnity ranging from a minimum of 2,5 to a maximum of 12 monthly wages”. The judge of the labour section, in the case at issue, states that the term of the contract is null and void and that an open ended employment contract between the parties occurs, sentencing the company to the compensation in favour of the employee. Therefore, the judge has acknowledged the indemnity introduced by Law no. 183/2010 in a cumulative way – and not in an alternative one – with the ordinary compensation tutelage (i.e., the defendant company has been sentenced to pay in favour of the employee, besides the wages accrued from the date of the default action to the date of the effective reinstatement, also the compensation for the minimum amount of 3 monthly wages).
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