Order No. 9009 of 2024: Severance Pay and Unused Vacation Days

The order no. 9009 of April 4, 2024, issued by the Court of Cassation, provides important clarifications regarding the calculation of severance pay for public employees. The central issue concerns the inclusion of the substitute indemnity for unused vacation days in the contribution base for the purpose of calculating severance pay.

The Regulatory Context

The ruling is based on Articles 3 and 38 of the Presidential Decree No. 1032 of 1973, which govern the calculation methods for indemnities for public employees. In particular, it emphasizes that the substitute indemnity for unused vacation days is to be considered part of the remuneration and therefore must be subject to social security contributions pursuant to Article 12 of Law No. 153 of 1969.

The Ruling Summary

INDemnity - SEVERANCE PAY Calculation - Substitute indemnity for unused vacation days - Inclusion in the contribution base pursuant to Articles 3 and 38 of Presidential Decree No. 1032 of 1973 - Existence - Foundation. For the purposes of calculating severance pay, the substitute indemnity for unused vacation days must be included in the computation of the contribution base as per Articles 3 and 38 of Presidential Decree No. 1032 of 1973, as it has a remunerative nature and is subject to social security contributions pursuant to Article 12 of Law No. 153 of 1969.

This summary highlights that not only must severance pay account for unused vacation days, but that the latter, being of a remunerative nature, directly affect social security contributions. This represents an important step for the rights of public sector workers, ensuring that all forms of remuneration are equitably considered.

Implications for Public Sector Workers

The consequences of this order are significant for public employees. Below are some of the main implications:

  • Greater protection of workers' remuneration rights.
  • Clarity on the management of unused vacation days in relation to severance pay.
  • Possibility of a fairer calculation of severance pay, now including unused vacation days.

This ruling, therefore, not only clarifies a legal issue but also serves as an important protective tool for workers, ensuring that every aspect of their remuneration is considered at the time of termination of employment.

Conclusions

In conclusion, order no. 9009 of 2024 is an important legal reference that clarifies how substitute indemnities for unused vacation days must be included in the calculation of severance pay for public employees. This regulatory clarification represents a victory for workers, ensuring that all components of remuneration are treated equitably. It is essential for public employees to be informed about these rights in order to exercise them effectively.

Bianucci Law Firm