LABOUR | The Italian Supreme Court on disciplinary dismissal of executives

On 2 October 2025, the Italian Supreme Court issued its judgement in the case No. 26609, in which it reaffirmed that, in the context of executive employment, the concept of giustificatezza does not coincide with giusta causa. The case concerned the dismissal of a general manager for negligent supervision and inadequate coordination of activities relating to a complex procurement contract. The Court confirmed that, although the conduct did not amount to giusta causa, the dismissal was nonetheless justified, as the employer’s decision was not arbitrary, but rather based on the executive’s failure to meet the standards of diligence and oversight required by his role. While executives are not directly liable for the actions of their subordinates, but they are responsible for ensuring effective coordination and strategic direction. The Supreme Court reiterated that a justified disciplinary dismissal of an executive does not require serious misconduct, but may be based on conduct that undermines the relationship of trust between the parties, and dismissed the employee’s appeal.

Newsletter n. 114 – January 2026