A comparative look at dismissal costs and issues across Europe
Employment protection legislation can be very different from country to country. Legislation in some jurisdictions has substantially changed, due to many factors. The International Dismissal Survey details dismissal legislation, and provides dismissal cost projections from an employer’s perspective, in 31 countries.
Some of the survey’s key findings include:
- Dismissal costs in surveyed countries differ substantially
- Generally, dismissal costs in Western-Europe are higher than Central-Europe.
- Dismissal costs are highest when an employee is dismissed without reason
- In most countries, the legal grounds for an employer to dismiss employees are restricted and subject to strict formalities
- In general, there is little or no difference in the cost of dismissal for individual reasons, compared to dismissal for economic reasons
- Since the last International Dismissal Survey, some countries have substantially changed their dismissal regulations, in response to court decisions, or for simplification and increase of labor flexibility
- In all surveyed countries, seniority within the company is the key factor in determining the level of dismissal cost
The contribution of DT Lux has been strictly limited to the production of the cost projections. The preparation of the legal part was performed by a local, independent law firm.