The Damage to the employee's professionalism in the layoff fund

29 May 2024

The employee's unlawful placement in the work-suspension regime and the resulting inactivity create a loss of professionalism for the employee, who must be compensated.

In a landmark decision, the Supreme Court, in its Order No. 10267 of April 16, 2024, ruled that an employee unlawfully placed in the work-suspension law regime is entitled, in addition to the difference between the regular wage and the suspension indemnity paid by the Social Security Agency, to compensation for loss of professionalism, to be quantified in equity. This ruling sets a crucial precedent in the realm of labour law.

The case revolves around an appeal filed by an employee who, due to an employer's illegitimate decision, was placed in the Redundancy Fund for suspended workers. This decision significantly damaged her professionalism. She seeks an assessment of this damage and compensation for it, highlighting the injustice she has faced. 

In this case, it was determined that the employer’s order was unlawful because the criteria used to identify employees to be placed on work suspension were violated.

The Supreme Court has established the principle that, in the presence of appropriate allegations, forced inactivity and, in particular, the fact of not being able to exercise one's professional services not only harms the employee's image but also damages him professionally as it can result in the depletion of professional skills acquired during the employment.

The Court considers various circumstantial elements to assess the impairment of professionalism comprehensively. These elements include the quality and quantity of the work activity performed, the type and nature of professionalism involved, the duration, and the different and new job positions assumed after the demotion.

Therefore, the employee unlawfully placed in the work-suspension regime is entitled to be awarded separate compensation for loss of professionalism, in addition to the gap between the regular wage and the suspension indemnity received, to be determined by the employment court.

2024 - Morri Rossetti

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