ARTICLE
28 October 2025

The Collective Agreement Applied By The Employer Must Be Consistent With The Actual Work Performed: The Supreme Court Calls For Contractual Coherence

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The recent ruling No. 27719 of 17 October 2025 by the Italian Supreme Court of Cassation (Labour Section) addresses a critical issue for companies operating across...
Italy Employment and HR
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The recent ruling No. 27719 of 17 October 2025 by the Italian Supreme Court of Cassation (Labour Section) addresses a critical issue for companies operating across multiple sectors: the proper application of collective bargaining agreements (CCNL) when the employer belongs to more than one employers' association.

The Court ruled that employers cannot freely choose which CCNL to apply based on convenience or internal uniformity. When a company is affiliated with several associations, it must ensure that each group of employees is covered by the collective agreement consistent with the actual work performed and the relevant business sector.

The decision reinforces two key legal principles:

  1. the binding effect of association membership, which obliges the employer to respect the collective agreements signed by its organisation;
  2. the constitutional guarantee under Article 36, which requires fair and proportionate remuneration, preventing the strategic use of less favourable agreements.

From a business perspective, this case highlights the importance of a structured internal contractual due diligence process. Companies should periodically verify that the applied CCNL aligns with the real duties and activities carried out by their workforce.

Such compliance reviews help to:

  1. identify inconsistencies between contracts and functions;
  2. prevent litigation and reputational risk;
  3. strengthen credibility as a compliant and socially responsible employer.

In an era where sustainability and governance are integral to corporate reputation, the Supreme Court draws a clear line for corporate compliance: managerial autonomy cannot override contractual fairness.

Carrying out regular due diligence on collective agreements is not merely a legal safeguard — it is a strategic investment in compliance, trust, and long-term competitiveness.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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