Italy's Referendum on Small Business Dismissals: What You Need to Know

Italy's Referendum on Small Business Dismissals: A Crucial Vote Approaching Italy is on the verge of a significant political decision as four referendums, proposed by the CGIL (Italian General Confederation of Labour), are set to take place on June 8th and 9th. This report focuses on the second referendum, concerning the rules on dismissals in small businesses. Currently, the law limits compensation for wrongful dismissal in companies with fewer than 16 employees to a maximum of six months' salary. This means even if a judge rules the dismissal unjustified, the compensation is capped. The referendum proposes to abolish this cap, allowing judges to determine a more appropriate compensation based on the individual circumstances. "If you vote 'yes,' you are asking to eliminate this maximum cap," explains a presenter from TG La7 in a recent video explaining the referendum. "In practice, if the question passes, the judge will be able to determine a higher compensation, proportionate to the damage suffered, without being bound by the six-month limit. If you vote 'no,' you choose to leave things as they are." The outcome of this referendum could significantly impact employment relations in Italy's small businesses, a sector crucial to the Italian economy. The debate highlights the tension between protecting workers' rights and ensuring business flexibility. The referendum's result will offer valuable insights into the balance Italians seek between these two important considerations.