by Carlo Pisani, Federico Pisani
Guida al Lavoro No. 41, NT+ Lavoro – Il Sole 24 Ore
29 October 2026
The Constitutional Court’s judgment No. 174/2026 has immediate effects on pending proceedings and legal relationships that have not yet been definitively settled. It requires a reassessment of the financial risk associated with disputes involving long-serving employees of small businesses, with implications for settlement strategies and the management of employment termination.
With judgment No. 174, published on October 22, 2026, the Constitutional Court has revisited the compensation framework applicable to unlawful dismissals by employers that do not meet the employee threshold triggering Article 18 of the Workers’ Statute, this time with regard to employees hired before March 7, 2015.
This ruling completes, in relation to “legacy employees,” the process initiated by judgment No. 183 of 2022 and continued with judgment No. 118 of 2025, which had eliminated the equivalent six-month compensation cap provided for under Article 9(1) of Legislative Decree No. 23/2015.
Both constitutional questions were referred by the Labour Court of Livorno.