The Constitutional Court has provided key clarifications regarding the dismissal of executives, stemming from a case related to the Covid-19 emergency (Judgment No. 141 of July 31, 2025).

The Court reaffirmed that while executives are excluded from the ban on individual dismissals for economic reasons, they remain subject to restrictions concerning collective dismissals.

This decision has significant implications for both companies and workers.

For companies, the ruling offers greater flexibility in managing executive personnel.

Specifically, businesses may dismiss an executive for economic reasons without being bound by the same restrictions that apply to subordinate employees.

This grants companies a broader scope of action, which is particularly valuable for those facing economic challenges amid uncertain times.

However, the ruling does not remove the protections associated with collective dismissals an aspect companies must keep in mind.

If a company opts to implement large-scale workforce reductions, affecting both executives and subordinate employees, it must still comply with the regulations governing collective dismissals.

These require more rigorous procedures and provide safeguards for the workers involved.

For workers, the Court’s decision has a dual impact.

On one hand, executives are excluded from protections against individual dismissals for economic reasons; on the other, they continue to be protected under the rules governing collective dismissals, just like other employees.

While the unique role of executives within a company may justify differentiated treatment, the judgment ensures that this category is not entirely without protection at least in the context of large-scale staff reductions.

Ultimately, Judgment No. 141/2025 provides clearer guidance for companies in managing their workforce, allowing greater flexibility in the individual dismissal of executives.

At the same time, it reaffirms protections for subordinate employees and the need to follow proper procedures in collective dismissals, striking a balance between business flexibility and the protection of workers’ rights during public health emergencies.

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