Together with just cause , one of the instances that legitimate individual dismissal of an employee: unlike dismissal for just cause, however, dismissal for justifiable reason does not exempt the employer from the obligation to give notice .

Article 3 of Law No. 604/1966 distinguishes between two types of justifiable reason: "subjective", consisting of a "serious non-fulfilment of the employee's contractual obligations", and "objective", which occurs when dismissal is justified by "reasons inherent in the production activity, the organization of work and its proper functioning".

The serious non-fulfilment which gives rise to subjective justifiable reason differs both from that which constitutes just cause , in being of a less grave nature, and from that which may give rise to disciplinary sanction .

In order to distinguish between the different categories, case law applies a criterion of correspondence between the gravity of the violation and the gravity of the judgement adopted.

Objective justifiable reason has nothing to do with the employee's behaviour but is concerned with the enterprise's technical/production requirements. When these requirements dictate organizational decisions resulting in the abolition of jobs, they prevail over the employee's employment interests, subject to only two conditions: that the technical or organizational reasons cited by the employer in support of management decisions actually exist; and that dismissal is the necessary consequence of these decisions (see also collective dismissal/redundancy ).

Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.