Retaliatory Dismissal for Testifying in Court: The Italian Supreme Court Declares It Null and Void

The dismissal of an employee who testifies in court in favor of a colleague can be deemed null and void if it is motivated by a retaliatory intent. This principle has been reaffirmed by the Italian Supreme Court (Corte di Cassazione) in Order No. 8857 of April 3, 2025, which addresses a highly significant case concerning employee rights and the protection of testimonial activity.

The Case: A Testimony That Cost an Employee His Job

The case originates from a dispute between a company and a former collaborator formally classified as an independent agent. A colleague, who was a regular employee of the same company, was called as a witness and provided key evidence that led to the recognition of an employment relationship under Article 2094 of the Italian Civil Code. As a result, the company was ordered to retroactively reconstruct the employment relationship and pay all related compensation, including vacation, severance pay, and other entitlements.

Shortly after giving testimony, the employee was dismissed for just cause. The company justified the decision by accusing the worker of giving false testimony. However, a crucial detail emerged: no criminal complaint for perjury was filed by the employer, despite the alleged conduct being criminally relevant under Italian law.

The Legal Challenge and First Instance Rulings

The employee contested the dismissal before the Labor Court of Milan, using the special “Fornero Procedure” for unlawful dismissals. He sought to have the retaliatory nature of the dismissal recognized and declared null. The trial court ruled in favor of the employee in both the summary phase and the subsequent full trial. On appeal, the Milan Court of Appeals upheld the retaliatory nature of the dismissal but adjusted the amount of damages, considering the “aliunde perceptum” — i.e., the earnings the employee received from other work after the dismissal.

The Supreme Court’s Ruling

The company appealed to the Italian Supreme Court, but the Court rejected the appeal and confirmed the findings of the lower courts. According to the Court, this was not a standard disciplinary dismissal but rather a termination driven by an unlawful motive: the employer’s retaliatory reaction to the worker’s testimony. As such, the dismissal was deemed retaliatory and therefore null under Article 1345 of the Italian Civil Code, which invalidates actions based on an illicit, exclusive, and determining motive.

Calculation of Compensation

The Court also addressed how compensation should be calculated. In cases where a worker previously classified as independent is recognized as an employee, the compensation must be based not on the standard wage levels of the applicable collective labor agreement, but on the average commissions earned in the year prior to dismissal. This principle had already been established by previous case law (Cass. No. 33444/2022) and was reaffirmed in this decision.

No Criminal Complaint Strengthens the Retaliation Theory

A decisive factor in the ruling was the absence of a criminal complaint for false testimony. According to the Court, the close timing between the employee’s court appearance and the dismissal, combined with the lack of any legal action concerning the alleged perjury, clearly pointed to a retaliatory motive.

Protecting the Right to Testify and Limiting Employer Power

This decision reinforces a fundamental principle of labor law: employees must not be punished for fulfilling their legal duty to testify truthfully in court. Dismissals based on retaliatory grounds are not only unjustified but radically null and void, exposing the employer to serious financial and reputational consequences.

Conclusion

With this ruling, the Italian Supreme Court sends a strong message in defense of the integrity of judicial proceedings and the protection of workers’ rights. It confirms that employment relationships cannot be exploited to intimidate or retaliate against employees who exercise constitutionally and legally protected rights — such as acting as a witness in legal proceedings.