Layoffs for economic reasons, Atty Pietro Ichino’s analysis based on law & economics approach

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At the Brescia Civil Chamber conference of October 25th, Atty Pietro Ichino, who has held the chair of Employemnt Law at Milan’s university for years,  presented an analytical and transparent comparison between the traditional orientation of law and jurisprudence on the justified objective reason for dismissal and the one based on a law & economics approach.

After an analysis of legislation and jurisprudence, professor Ichino presented his thesis, according to which it is not enough to expect some whatsoever economic loss to justify a dismissal for economic reasons (so-called objective justifying reason): a certain minimum threshold is to be exceeded by the expected loss to allow for the dismissal. This point of view presupposes a sort of “insurance content” of the employment relationship: the justified dismissal for economic reasons   marks the limit of the cover of the risk borne by the employer.

Download Pietro Ichino’s slides (in Italian).