Guarantee Liability in Construction Contracts: Analysis of Ordinance No. 16075 of 2024

The recent ordinance no. 16075 of June 10, 2024, issued by the Court of Cassation, provides an important clarification on guarantee liability in the context of private contracts. In particular, the ruling focuses on the collateral obligation to pay the social security and salary contributions of workers, establishing the rights and duties of the client in the event of default by the principal debtor.

Regulatory and Jurisprudential Context

The issue considered by the Court is based on Article 29, paragraph 2, of Legislative Decree No. 276 of 2003, which establishes that the client has a guarantee liability for the payment of salaries and social security contributions. This provision has been subject to different interpretations over the years, and the ruling in question clarifies that such liability does not imply co-liability for the contributory debt but rather a guarantee responsibility.

  • The client is not jointly liable for the salary and social security debts of the subcontractor.
  • In case of default, the client can take action against the principal debtor.
  • The guarantee responsibility is activated only after the client has fulfilled their payment obligation.
Contract - Collateral obligation to pay social security and salary contributions pursuant to Article 29, paragraph 2, Legislative Decree No. 276 of 2003 - Nature - Guarantee liability of the joint obligor - Default of the principal debtor - Consequences. In the context of private contracts, the collateral obligation to pay the social security and salary contributions of workers does not create co-liability for the contributory debt but establishes the "guarantee liability" of the joint obligor client, pursuant to Article 29, paragraph 2, of Legislative Decree No. 276 of 2003; it follows that the aforementioned, after satisfying the claim, in case of default by the employer can take action against them for the entire amount paid.

Implications for the Parties Involved

This ruling has a significant impact on both clients and subcontractors. Indeed, the client must be aware that, although they are not jointly liable, their guarantee responsibility still implies a significant burden. On the other hand, subcontractors must pay attention to their financial situation and compliance with social security obligations to avoid penalties.

Conclusions

The ordinance no. 16075 of 2024 represents a step forward in clarifying responsibilities in construction contracts. It is essential for all parties involved to understand their obligations and associated risks to ensure proper execution of contracts and to avoid future disputes. Jurisprudence continues to evolve, and each new ruling contributes to outlining an increasingly clear and precise regulatory framework.

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