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Comparison of Employment Dismissal Laws in Germany, Sweden, UK, Austria, Belgium, Korea, a, Exams of Business

An overview of the legal requirements for employee dismissals in seven countries: Germany, Sweden, United Kingdom, Austria, Belgium, Korea, and Ireland. It covers the notice periods, consultation requirements, and grounds for fair and unfair dismissals. Each country's specific regulations are detailed, including the role of unions and employee representatives.

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2021/2022

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Download Comparison of Employment Dismissal Laws in Germany, Sweden, UK, Austria, Belgium, Korea, a and more Exams Business in PDF only on Docsity! 1 DETAILED DESCRIPTION OF EMPLOYMENT PROTECTION IN OECD AND SELECTED NON-OECD COUNTRIES, 2008 1 Table 1 Administrative procedures for individual notice and dismissal .................................................... 2 Table 2 Notice periods and severance pay for individual dismissals at three lengths of service ............... 6 Table 3 Conditions under which individual dismissals are fair or unfair ................................................... 7 Table 4 Trial period .................................................................................................................................. 12 Table 5 Maximum time after dismissal to make claim of unfair dismissal .............................................. 14 Table 6 Compensation pay and related provisions following unjustified dismissal................................. 16 Table 7 Regulation of fixed-term contracts (FTC) ................................................................................... 20 Table 8 Regulation of temporary work agency (TWA) employment ....................................................... 24 Table 9 Procedures for collective dismissals: definition and notification requirements .......................... 30 Table 10 Procedures for collective dismissals: delay before notice can start and other special costs ...... 33 1. Tables present information on employment protection in force on 1 January 2008 (1 January 2009 for France and 17 February 2009 for Portugal). For more information, see the OECD’s employment protection website (www.oecd.org/employment/protection). 2 Table 1 Administrative procedures for individual notice and dismissal Legal provisions Notification procedures (scale 0-3) Delay before notice can start (days) Australia Redundancy: written or oral notice with statement of reasons. 1 1 Personal reasons: if disputed, the AIRC takes into account whether the employee was warned about unsatisfactory performance and given time to respond before dismissal. 1 7 Austria Notification first to Works Council (if one exists), then to employee. Maximum 5 days for Works Council to react. Notice can then be served, usually orally. 2 7 Belgium Blue collar: Notification of employee by registered letter. Oral notification is possible if the employer chooses severance pay in lieu of notice. In case of written notification, the letter becomes effective three working days after the letter has been sent and the notice period runs from the first Monday following receipt of the registered letter. 0.5 1 or 8 White collar: Notification of employee by registered letter. Oral notification is possible if the employer chooses severance pay in lieu of notice. In case of written notification, the letter becomes effective three working days after the letter has been sent and the notice period runs from the first day of the calendar month following receipt of the registered letter. 0.5 1 or 18 Brazil Oral or written notice. 0 1 Canada Written or oral notification to the employee or, sometimes, to the employee‟s representative (union). 1 1 Chile The employee must be notified in person or by registered mail with an explanation of the reasons for dismissal. Notice of the dismissal should also be sent to the Labour Inspectorate. 2 2 China Notice must be given in writing and the labour union notified of the reason in advance. If the employer has violated laws, administrative regulations of the provisions of the employment contract, the labour union shall have the right to demand that the employer rectify the matter. The employer shall consider the opinions of the labour union and notify the labour union in writing on how it handled the matter. 2 1 Czech Republic Personal reasons: Letter sent by mail or handed out directly, after notification of trade union and previous warning. The notice period starts to run from the first day of the calendar month following receipt of the letter. 2 22 Redundancy: Advance consultation, with offer of another job or re-training if feasible; then letter sent by mail or handed directly to employee. The notice period starts to run from the first day of the calendar month following receipt of the letter. 2 22 Denmark White collar: legal requirement of written notice. Employees can request negotiation with the union once notice is received. Notice must be given before the first day of a calendar month. Notice period starts from the first day of the calendar month following receipt of the notice. 1 16 Blue-collar: requirements in collective agreements. The main agreement between the Danish Confederation of Trade Unions and the Danish Employers' Confederation contains a provision on workers‟ right to written information on reason for dismissal and provisions on negotiations between the union and the employer if the union considers the dismissal unfair. 1 1 Finland Personal reasons: Notice orally or in writing. Statement of reasons and information on appeals procedures given to the employee upon request. Advance discussion with employee and trade union if requested by employee 1.5 7 Lack of work: In companies with 20 or more employees, prior to notice, notification to employment office and trade union representatives, a five day delay and then consultation for 14 days on reasons and ways to avoid lay-off. Notice can then be given orally or in writing; in companies with less than 20 employees, only notification to the employment office then notice orally or in writing. 2 21 Estonia Notice must be given in writing. Termination of employment contracts with a pregnant woman, a person raising a child under 3 years of age, a minor or an employee representative can only be done with the permission of the labour inspector, a decision on which must be made within one week. 1 1 France Personal reasons: Letter; interview; statement of reasons to employee; a second letter: notification by registered letter with recorded delivery. Minimum delay between the first letter and the interview is five days. Additional delay of two working days after the interview for the second letter to be sent. 1 7 Economic reasons: Letter; interview; statement of reasons to employee; a second letter: notification by registered letter with recorded delivery. Notification sent to the labour inspectorate and usually to the personnel delegates or the Works Council. 15 days are required after the interview for the second letter to be sent. 2 24 Germany Legal requirement for notification to employee to be in writing, after oral or written warnings to employee in case of dismissal for lack of performance. Previous notification of planned dismissal, including reasons for termination, to works council (if one exists) is necessary. Works council has seven days to object to dismissal. Notice can then be served, specifying the 1st or 15th of the month. In case of notice given despite works council objection and subsequent law suit, dismissal has to wait for decision by Labour Court. 2.5 16 5 Legal provisions Notification procedures (scale 0-3) Delay before notice can start (days) Slovak Republic Notice can be given to an employee, provided that he was, in the last six months, advised of the possibility of notice in writing, in conjunction with the breach of work discipline or unsatisfactory work results. Notice must be given in writing. 1 7 Slovenia Prior to dismissal for reasons of incapacity, the employer must allow the worker to offer a defence within a reasonable deadline, which must not be shorter than three working days, except where circumstances exist for which reason it would be unjustified to expect the employer to provide this for the worker. The employer must notify the worker in writing of an intended dismissal for business reasons. Where the worker so requests, the employer must notify in writing the union to which the worker belongs at the beginning of the procedure of an intended dismissal for reasons of incapacity or for business reasons. The union may give its opinion within a deadline of eight days. The union may oppose the dismissal if it believes that there are no justified reasons for it or that the procedure was not carried out in accordance with legal requirements. 3 11 South Africa Poor work performance: After giving appropriate warning to the employee, notice must be given in writing, except when it is given to an illiterate employee. After the end of the probationary period, an employee should not be dismissed for unsatisfactory performance unless the employer has (i) given the employee appropriate evaluation, instruction, training, guidance or counselling; and (ii) after a reasonable period of time for improvement, the employee continues to perform unsatisfactorily. The procedure leading to the dismissal should include an investigation to establish the reasons for the unsatisfactory performance and the employer should consider other ways, short of dismissal, to remedy the matter. In the process, the employee should have the right to be heard and to be assisted by a trade union representative or fellow employee. Notice is then given in writing. 1 7 Operational reasons: The employer must issue a written notice inviting relevant parties to engage in consultation. Consulting parties are the workplace forum and/or trade union if applicable, or any other parties mentioned in a collective agreement. If there is no workplace forum or trade union, the employer must consult with the employee/s likely to be affected or their nominated representative. During consultation period (typically between one week and one month duration), the employer and consulting party should try to reach consensus on appropriate measures to avoid/minimise dismissals, change the timing of dismissals or mitigate their adverse affects, the method for selecting employees to be dismissed and severance pay for dismissed employees. The employer must consider and respond to the representations made by other consulting parties and, if the employer does not agree with them, the employer must state the reasons for disagreeing. The employer must select the employees to be dismissed according to selection criteria agreed between the consulting parties. If no criteria have been agreed, the criteria must be fair and objective. Notice of dismissal must then be given in writing, except when it is given to an illiterate employee. 2 19 Spain Written notice with statement of reasons plus notification to workers‟ representatives. In the case of disciplinary dismissal, the notice of dismissal will contain the facts on which the dismissal is based and the date of effect. The letter can be sent by mail or handed directly to the employee. 2 1 Sweden Personal grounds: Written notification to employee and trade union, after at least one previous warning (as proof of “long-standing” problems) that action is intended; reasons to be given if requested by employee. Previous notification must be given to the employee, minimum 14 days before notice is intended. If negotiations are asked for, the employer cannot execute the dismissal before the negotiations are terminated. Negotiations can take from a few days or weeks to up to six months. 2 21 Redundancy: Notification to employee and trade union and duty to negotiate on pending dismissals before notice can be served. The trade union has a right to deliberation/negotiations. 2 7 Switzerland Notification to employee who has the right to request a statement of reasons. Letter can be sent by mail or handed directly to employee. 0.5 1 Turkey Written notice to employee and notification, within 15 days, to Ministry of Labour and regional public employment service. Letter sent by mail or handed directly to employee. 2 1 United Kingdom Individual termination: Employees with 1 years‟ continuous service have the right to receive from their employers, on request, a written statement of the reasons for their dismissal. Employees dismissed during pregnancy or statutory maternity leave are entitled to receive a statement regardless of whether they have asked for one and regardless of length of service. 0.5 1 Redundancy: Consultation with recognised trade union recommended, but not legally required when few workers are affected. 1.5 1 United States No prescribed procedures. Only a few States prescribe a “service letter” a certain period after dismissal, noting the reasons for termination. Some states require that a dismissed employee submit a request for the reasons for his or her termination rather than prescribe a service letter. 0 1 6 Table 2 Notice periods and severance pay for individual dismissals at three lengths of service Notice period Severance pay 9 months 4 years 20 years 9 months 4 years 20 years Australia All workers 1 week 3 weeks 4 weeks 0 0 0 Redundancy cases 0 8 weeks 8 weeks Austria Blue collar 2 weeks 2 weeks 2 weeks 0 0 0 White collar 6 weeks 2 months 4 months Belgium Blue collar 35 days 35 days 112 days 0 0 0 White collar 3 months 3 months 15 months Brazil All workers 1 month 1 month 1 month 0 0 0 Canada Varies by province 1-2 weeks 2-4 weeks 2-8 weeks 0 0-4 weeks 0-20 weeks Average for Quebec, Ontario, Alberta and British Columbia 1 week 3.4 weeks 8 weeks 0 0 9 weeks Chile All workers 1 month 1 month 1 month 0 4 months 11 months China All workers 1 month 1 month 1 month 1 month 4 months 12 months Czech Republic All workers 2 months 2 months 2 months 0 0 0 Redundancy cases 3 months 3 months 3 months Denmark Blue collar 3 weeks 8 weeks 10 weeks 0 0 0 White collar 3 months 4 months 6 months 0 0 3 months Estonia Liquidation of firm 2 months 2 months 2 months 2 months 2 months 4 months Redundancy 2 months 2 months 4 months 2 months 2 months 4 months Unsuitability 1 month 1 month 1 month 1 month 1 month 1 month Finland All workers 14 days 1 month 6 months 0 0 0 France All workers 1 month 2 months 2 months 0 0.8 months 6.7 months Germany Personal reasons 4 weeks 1 month 7 months 0 0 0 Operational reasons 0.4 months 2 months 10 months Greece Blue collar 0 0 0 5 days 15 days 4 months White collar 30 days 3 months 16 months 15 days 1.5 months 8 months Hungary All workers 30 days 35 days 90 days 0 1 month 5 months Iceland All workers 2 months 3 months 3 months 0 0 0 India Small firms 0 1 month 1 month 0 2 months 10 months Large firms 0 3 months 3 months Indonesia All workers 0 0 0 1 month 6 months 16 months Israel Salaried workers 13.5 days 1 month 1 month 0 4 months 20 months Wage workers 9 days 1 month 1 month Ireland All workers 1 week 2 weeks 8 weeks 0 0 0 Redundancy cases 2 weeks 2 weeks 8 weeks 0 3.6 weeks 16.4 weeks Italy Blue collar 6 days 9 days 12 days 0 0 0 White collar 15 days 2 months 4 months Japan All workers 30 days 30 days 30 days 0 0 0 Korea All workers 1 month 1 month 1 month 0 0 0 Luxembourg All workers 2 months 2 months 6 months 0 0 6 months Mexico All workers 0 0 0 0 6 months 18 months Netherlands Termination via PES 1 month 1 month 3 months 0 0 0 Termination via court 0 0 0 0 6 months 18 months New Zealand All workers 2 weeks 2 weeks 2 weeks 0 0 0 Norway All workers 1 month 1 month 3 months 0 0 0 Poland All workers 1 month 3 months 3 months 0 0 0 Portugal All workers 15 days 30 days 75 days 3 months 4 months 20 months Russian Federation All workers 2 months 2 months 2 months 2 months 2 months 2 months Slovak Republic All workers 2 months 2 months 3 months 2 months 2 months 3 months Slovenia Business reasons 30 days 30 days 75 days 0 0.8 months 6.7 months Incapacity 30 days 30 days 60 days South Africa All workers 2 weeks 4 weeks 4 weeks 0 4 weeks 20 weeks Spain All workers 30 days 30 days 30 days 0.7 months 3.5 months 17 months Sweden All workers 1 month 3 months 6 months 0 0 0 Switzerland All workers 1 month 2 months 3 months 0 0 2.5 months Turkey All workers 4 weeks 8 weeks 8 weeks 0 4 months 20 months United Kingdom All workers 1 week 4 weeks 12 weeks 0 0 0 Redundancy cases 0 4 weeks 20 weeks United States All workers 0 0 0 0 0 0 7 Table 3 Conditions under which individual dismissals are fair or unfair Legal provisions Score (scale 0-3) Australia Fair: Dismissal can be fair if justified on the basis of capacity or conduct, subject to whether it is harsh, unjust or unreasonable as well as for economic redundancy (“retrenchment”), or for genuine operational reasons meaning reasons of an economic, technological, structural or similar nature relating to the employer's undertaking, establishment, service or business. Unfair dismissal happens when process of an employee‟s dismissal is „harsh, unjust or unreasonable.‟ This phrase is not defined but factors taken into account in determining whether it applies are: whether there was a valid reason for the termination related to the capacity/conduct of the employee or operational requirements of business, whether employee notified of reason, whether employee given opportunity to respond to reason related to capacity/conduct, whether warned of unsatisfactory performance if that‟s the ground of termination, degree to which employer‟s business affects procedures, degree to which absence of dedicated HR people impacts on employer‟s procedures. Unlawful: temporary absence from work because of illness or injury, trade union membership, non membership of a trade union, seeking office as or acting as a representative of employees, filing complaint or participating in proceedings against employer involving a violation of laws, race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, absence from work during maternity leave or parental leave, temporary absence from work to carry out voluntary emergency management activity, religion, political opinion, national extraction or social origin, refusing to negotiate in connection with, make, sign, extend, vary or terminate an AWA. 0 Austria Fair: dismissals for “serious reason”, including non-performance or lack of competence, and for operational reasons or other business needs. In the case of dismissal for operation reasons, the court may examine whether dismissal was actually necessary or whether it would have been possible to transfer the worker to another post. Unfair: “socially unjustified” dismissals (which would affect the dismissed employee more unfavourably than other comparable employees of the company, or which would impair the interests of the employee to a greater degree than the interest of the firm in dissolving the employment relationship); and dismissals on inadmissible motive (e.g. discrimination, trade union activity or imminent military service). Employers intending to terminate older workers‟ contracts with a tenure of more than 2 years have to take social aspects into account if it appears to be difficult for such workers to get another job. 1 Belgium Unfair: for blue collar workers, dismissals for reasons which have no connection whatsoever with the capability or conduct of the worker or which are not based on the operational needs of the undertaking, establishment or department. For white collar workers, the concept of abusive dismissal does not exist in regulation and one will refer to the general concept of abuse right. The right to lay off must be exerted for an aim for which it was granted, namely the interest of the company. Also unfair are dismissals of workers on maternity or educational leave, and trade union and works council delegates. 0 Brazil Fair: The following cases constitute grounds for “fair” (com justa causa) dismissal: i) dishonest acts; ii) immoral conduct or misbehaviour; iii) regular conduct of business by the worker for his own or another person‟s account, without the employer‟s permission, in competition with or to the detriment of the employer; iv) criminal conviction, unless the sentence has been suspended; v) negligence; vi) habitual or on-the-job drunkenness; vii) breach of company secrecy; viii) breach of discipline or insubordination; ix) abandonment of the job; x) physical or verbal aggression in the workplace against any person, except in self defence or in defence of third parties; xi) physical or verbal aggression against the employer or a superior, except in self defence or in defence of third parties; xii) habitual gambling. Acts prejudicial to national security, if proven in administrative proceedings, also constitute grounds for fair dismissal. 3 Canada Prohibited dismissals: Dismissals are prohibited if they are based on a prohibited ground of discrimination (e.g., sex, race, disability, religion, sexual orientation), pregnancy, garnishment proceedings, or the exercise by an employee of a right under human rights or labour statutes (e.g., employment standards, occupational safety and health and labour relations legislation). Unjust dismissal: Legislation in three jurisdictions contains “unjust dismissal” provisions, whereby an employee who meets specific eligibility requirements (e.g., minimum length of service) may not be dismissed unless specific conditions are met: • Federal jurisdiction: a person employed for more than 12 months and who is not covered by a collective agreement may not be laid off, unless due to lack of work or the discontinuance of a function. • Quebec: an employee with two years or more of uninterrupted service in the same enterprise may not be dismissed without “good and sufficient reason”. • Nova Scotia: an employee with 10 years or more of service may not be discharged or suspended without just cause, unless it is for a reason beyond the control of the employer (e.g., destruction of a plant, labour dispute, weather conditions), the employee has refused the employer‟s offer of reasonable other employment or the employee has reached the age of retirement. Certain occupations and industries (e.g., construction industry) are excluded from these provisions. 0 Chile Fair: The employer may terminate the employee‟s contract on grounds of serious misconduct or breach of contractual obligations by the employee or citing the company‟s needs, such as streamlining, modernisation, improving productivity, changes in market conditions or the economy. 3 10 Legal provisions Score (scale 0-3) Korea Fair: Dismissals for “just cause” (according to court precedents, justifiable reasons include violation of work regulation, illegal activities, misconduct, apparent lack of abilities to carry out duties, inability to carry out duties due to physical disability, false statement of career experience, etc.) or urgent managerial needs (including individual redundancy and dismissals due to mergers and acquisitions when employees or union have been consulted on urgency, selection criteria and transfer/retraining alternatives). Unfair: Dismissal for reason of nationality, gender, belief or social status, of workers on sick leave, child birth and maternity leave, and when not having demonstrated special efforts to avoid dismissal in consultation with labour union. (In case a worker receives medical treatment for occupational diseases or injuries or takes maternity leave before and after childbirth, the worker cannot be dismissed during such periods and within 30 days thereafter.) 1 Luxembourg Fair: Dismissal is fair if it is based on serious misconduct; worker capability; economic needs of the business. In assessing the conduct of the employee in unfair dismissal cases, judges take into account education, work histories, social status and elements affecting the employee's responsibility and consequences of dismissal. 1 Mexico Fair: Dismissals are fair only when the employer can demonstrate the worker‟s lack of integrity or actions prejudicial to the company‟s interests (such as negligence, imprudence, or disobedience). Unfair: In all other cases, including where relevant notification procedures have not been followed, the dismissal will usually be ruled unfair. Redundancy or poor performance are normally not legal grounds for dismissal. 3 Netherlands Fair: Dismissals on grounds of employee conduct or unsuitability, and for economic redundancy. In the latter case, data on the financial state of the company and proof that alternatives to redundancy have been considered must be given, and the selection of dismissed employees be justified (age/sex balance of the workforce, for example). Unfair: Unfair are “obviously unreasonable” terminations, and dismissals of pregnant women, the disabled, new mothers and works council members. 1.5 New Zealand Fair: Dismissal is justified if there is a good substantive reason to dismiss (where it would be open to a fair and reasonable employer to dismiss an employee in those particular circumstances) and the employer carries out the dismissal fairly and reasonably in those circumstances. What is a “good substantive reason” for dismissal depends upon the circumstances of each case, but there are three main grounds: misconduct, lack of competence, redundancy. What is „fair‟ process of dismissal also depends upon the circumstances of each case. The Authority and the Court have generally emphasised that an employee must be given reasonable notice of the allegation against them and reasonable opportunity to respond to those allegations. An employer must also give unbiased consideration to an employee‟s explanation. 0 Norway Fair: Dismissals for personal and economic reasons (rationalisation measures, etc.) are possible. However, the courts have restricted personal reasons mainly to cases of material breach of the employment contract (disloyalty, persistent absenteeism, etc.). Social considerations, age or job tenure do not determine the choice of which worker to dismissal but can to a certain extent influence the decision. Unfair: Dismissals for economic reasons are unfair if the employee could have been retained in another capacity. Dismissals for reasons of age (under the age of 70), for trade union activities, military service, pregnancy and of recent mothers and employees on sick leave are also unfair. 2.5 Poland Fair: Dismissals based on factors inherent in the employee (e.g. lack of competence) or on economic grounds of redundancy of the job. 0 Portugal Fair: Dismissals are permitted for economic grounds and for lack of professional or technical capability. Dismissals for individual redundancy must not involve posts also manned by people on fixed-term contracts. Dismissals for lack of competence are only possible after introduction of new technology or change to job functions. Unfair: Where the grounds for dismissal are irregular (where some of the formalities are not followed) or illegal (where the grounds for dismissal are declared unfounded by a judge or which lack fundamental procedural aspects). 2 Russian Federation Fair: An employer can terminate a labour agreement on grounds of serious misconduct, repeated non- fulfilment of job functions without reasonable excuse, if the employee is not fit for the occupied position or performed job functions because of ill health or insufficient qualifications, in case of dissolving of an organisation or termination of activities of an employer, or in case of reduction of number of employees in an organisation. Dismissal on grounds of reduction of number of employees in an organisation or if the employee is not fit for the occupied position or performed job functions is only allowed if transition of an employee to a different job position with consent of an employee is impossible. Unfair: Dismissal of an employee on employer's initiative is not allowed during the period of temporary incapacity of employee for work and during the period of leave of an employee (except cases of dissolving of an organisation or termination employer's activities if an employer is a physical entity). 2 Slovak Republic Fair: An employer may only give notice for the reasons specified in the Labour Code (e.g. personal reasons: continual minor breaches of work discipline or unsatisfactory work results – redundancy, economic or organisational reasons). Unfair: An employer cannot give notice for other reasons, such as discrimination, etc. 0 11 Legal provisions Score (scale 0-3) Slovenia Fair: Cancellation is legitimate if there exists a justified reason for cancellation which prevents continued work under the conditions from the employment contract. Unfair: Cancellation is not valid if it is: discriminatory, made owing to a threat or deception by the employer or for an unjustified reason. Unjustified reasons for regular cancellation are deemed to be: temporary absence from work due to illness or injury, parental leave or to care for family members; participating in legal proceedings against the employer; participation in union activities outside working hours; participation in union activities during working hours in agreement with the employer; participation in legal strike action; being a worker representative; change of employer; discrimination based on race, nationality or ethnic origin, skin colour, gender, age, disability, marital status, family obligations, pregnancy, religious and political beliefs, national or social background; taking part in military or civil service. 2 South Africa Fair: Dismissals related to the employee's conduct or capacity or the employer's operational requirements and effected in accordance with a fair procedure. Unfair: dismissals for discriminatory reasons, based on participation in lawful industrial action are automatically unfair. Also unfair if the employer cannot prove that the dismissal was fair. 0 Spain Fair: Dismissal based on objective grounds, including economic grounds, absenteeism, lack of adequacy for the job, lack of adaption to technological changes made in the enterprise after, if appropriate, a training course of three months, and lack of funding of public plans or programmes developed by the public administration or non-profit organisations. Unfair dismissal: dismissals where none of the above-mentioned grounds is proven. Null and void: dismissals based on discrimination or carried out with violation of fundamental rights, as well as those based on situations derived from maternity (pregnancy, birth, feeding, childcare, etc.). 2 Sweden Fair: Dismissals on “ objective grounds”, i.e. economic redundancy and personal circumstances, including lack of competence. In the case of lesser capability because of (e.g.) age, disease, etc., the employer has to try to adjust the workplace, rehabilitate the employee or transfer the employee to other suitable work. According to case law, it is only fair dismissal if the employee has a "permanent reduction of the working capacity which is so considerable that the employee no more can be expected to perform work of any significance with the employer". In cases of redundancy, selection of workers to be dismissed has to be justified (mainly based on last-in, first-out principle). Unfair: Objective grounds are deemed not to exist if an employee could reasonably have been transferred to another work, or if dismissal is based on events that happened over two months ago. 2 Switzerland Unfair: Dismissals based, inter alia, on personal grounds such as sex, religion, union membership, marital status or family responsibilities, or on the exercise of an employee‟s constitutional rights or legal obligations, such as military service. 0 Turkey Unfair: Dismissals of shop stewards, and on grounds of trade union membership, strike activity, pregnancy and after occupational accidents. Dismissals based on discrimination by race, sex, etc. 0 United Kingdom Fair: Dismissals relating to the capability, qualifications or conduct of the employee; because he/she is redundant; because continued employment would be illegal; or some other “substantial reason”. One year tenure generally necessary for being able to file for unfair dismissal. Unfair: Dismissals related to a range of reasons including trade union activity, health and safety whistle blowing, pregnancy or maternity, and the national minimum wage. No qualifying service required for complaints for these reasons 0 United States Fair: With the exception of the public sector, it is generally fair to terminate an open-ended employment relationship without justification or explanation (“employment-at-will” principle) unless the parties have placed specific restrictions on terminations. Unfair: Dismissals based on breach of Equal Employment Opportunity principles (i.e. national origin, race, sex, etc.) and dismissal of employees with physical or mental impairment if work could be performed through appropriate workplace adjustment. In addition, there are increasing numbers of cases where employees pursue wrongful termination claims by alleging that dismissal was based on a breach of an “implied contract” for continued employment. 0 12 Table 4 Trial period Legal provisions Length (mths) Australia The probation period is no more than 3 months, except if a longer period is reasonable given the nature of employment. Employees are not eligible to make an unfair dismissal claim in the first 6 months of employment. 3 Austria Usually 1 month 1 Belgium Not legally required, but when introduced in the employment contract, minimum and maximum duration is set by law. Blue collar workers: 7-14 days; white collar workers: 1-6 months (up to 12 months if annual salary exceeds 34 261 EUR (2008) or 35 638 EUR (2009). 3.3 Brazil Not covered by legislation, but 3 months is considered as a trial period for the purposes of determining compensation for unfair dismissal. 3 Canada Typically 3 months, except in Manitoba (30 days) and in New Brunswick, Prince Edward Island and Yukon (6 months) 3 Chile No trial period in legislation. 0 China If an employment contract has a term of not less than three months but less than one year, the probation period may not exceed one month. If an employment contract has a term of not less than one year but less than three years, the probation period may not exceed two months. For a fixed-term contract of not less than three years or an open ended employment contract, the probation period may not exceed six months. No probation period may be specified for an employment contract for the duration of a certain task or an employment contract with a term of less than three months. 6 Czech Republic 3 months. 3 Denmark Blue collar: 9 months (based on collective agreements). White collar: 12 months. 10.5 Estonia A probationary period shall not exceed 4 months 4 Finland 4 months. 4 France Contracts of indefinite duration can include trial periods of two months, (three months for supervisors and technicians and four months for managers). The trial period can be renewed once by agreement to a maximum, including renewal, of four months (six months for supervisors and technicians and eight months for managers). 4 Germany 6 months. 6 Greece 2 months. 2 Hungary Maximum 3 months. 3 Iceland 3 months. 3 India Employees appointed for a permanent post are usually kept on probation for a period of six months to a year, during which time the employee‟s suitability for the job can be assessed. The law does not stipulate any maximum probation period. 9 Indonesia Maximum of three months. There is no trial period allowed for fixed-term contracts. 3 Ireland All workers: 12 months (shorter trial periods are commonly agreed between employer and employee, but claims under statutory unfair dismissal legislation are not normally possible until after the periods shown). The 12 month limit does not apply in certain dismissal situations e.g. pregnancy, exercise or contemplated exercise of rights under maternity, adoptive, parental or carer‟s leave legislation, for trade union activity or rights under minimum wage legislation. 12 Israel Legislation does not regulate trial periods. Most collective agreements have trial periods ranging from 6 months to 3 years. The most common length of trial periods in collective agreements is 6-24 months. Employers have the power to extend trial periods under certain circumstances. 12 Italy Blue collar: 1-2 weeks (the trial periods cited are those common in collective agreements). White collar: 3-8 weeks. 0.8 Japan Not legally regulated, but usually varies from 2 to 6 months (most often 3 months). The employer can dismiss the employee without stating any reason during the whole length of the probation period. However, after the first 14 days the ordinary 30-day notice must be given. 3 Korea Although there is no set deadline for bringing a case of unfair dismissal before the courts, such a claim should be filed with the Labor Relations Commission within three months of dismissal if a complaint is to be made with the Labor Relations Commission. .. Luxembourg The maximum length of the trial period for a contract of unlimited duration is 6 months. 6 Mexico Not legally regulated. .. Netherlands All workers: 1 month for contract of < 2 years duration; 2 months for contract of >2 years duration. 2 New Zealand All employees are covered by employment protection rules from the start of their employment. The fact that an employee is employed on a trial/probationary period does not affect the application of the law relating to unjustifiable dismissal 0 Norway By law up to 6 months trial period (14 days notice). 3 Poland All workers: Minimum 2 weeks. Ranging up to 3 months. 1.8 Portugal 180 days for general workers (240 days for managers and senior officers/top executives). 3 Russian Federation A probationary period cannot exceed three months (six months for some categories of managerial workers). 3 Slovak Republic A probationary period for the maximum of three months may be agreed in writing in an employment contract. A probationary period may not be prolonged. 3 15 Legal provisions Time for claim Poland An appeal against a notice of termination of a contract of employment shall be filed with the labour court within seven days of the delivery date of the letter terminating the contract of employment. A claim for reinstatement in employment or for payment of compensation shall be filed with the labour court within 14 days after the delivery date of the letter terminating the contract of employment without notice, or after the expiry of the contract of employment. 7-14 days Portugal 60 days. 60 days Russian Federation An employee can submit an appeal to the courts within one month of receiving notice of dismissal. 1 month Slovak Republic The invalidity of unfair dismissal may be claimed at a court by the employee or employer no later than 2 months from the date upon which the employment was to terminate. 2 months Slovenia The worker may request a determination of the illegitimacy of the dismissal within a deadline of 30 days from the day of being served notice of termination. 30 days South Africa Within 30 days from the date of dismissal. 30 days Spain The worker can file a claim against dismissal within 20 working days following the date of effect of the dismissal. 20 working days Sweden 2 weeks if the employee wants to have the dismissal ruled invalid. If only damages are claimed, the time limit is 4 months. 2-16 weeks Switzerland The employee has to object against the dismissal in writing by the end of the notice period. If the objection is valid and if the parties do not agree on continuing the contract, the employee is entitled to claim compensation within 180 days after the end of the contract. Before end of notice period Turkey One month. 1 month United Kingdom Within three months of the employee's effective date of termination. If the application is received any later than that date, the tribunal will consider the complaint only if they believe it was not reasonably practicable for the employee to have made the complaint within the three-month period and that it has been made within such further period as they consider reasonable. However, the time limit will be extended in certain circumstances by a further three months where the employee has reasonable grounds for believing that a dismissal or disciplinary procedure (statutory or otherwise) is still in progress at the point where the normal time limit would have expired. 3 months United States The Equal Employment Opportunity Commission (EEOC) requires that a charge be filed before a private law suit is filed in court. A charge must be filed with the EEOC within 180 days from the date of the alleged violation, but the deadline may be extended to 300 days if the change is also covered by state or local anti-discrimination laws. If the EEOC does not resolve the unfair dismissal claim, then the time limit is governed by a state's tort statute of limitations, which is usually two years. 180-300 days 16 Table 6 Compensation pay and related provisions following unjustified dismissal Legal provisions Typical compensation at 20 years tenure (months) Extent of reinstatement (scale 0-3) Australia Courts may order reinstatement with back pay, but the option of reinstatement is only rarely made available to the employee. Compensation up to six months wages, plus entitlements (that would have been) accrued until the end of notice period. (For non-award employees, the cap is either 6 months wages or 42 700 AUD, whichever is lower.) 6 1.5 Austria The employee has the right to choose between reinstatement and compensation, although this option is rarely taken up by employees. In the event of socially unjustified dismissal, the employee is entitled to compensation equal to earnings between the dismissal and the legal settlement of the case. Sums earned by the employee in the interim are set off against the award. 6 3 Belgium No right to reinstatement. Compensation at least equal to the notice period (in the event that notice was not given). White collar: additional compensation for damages as determined by a judge. Blue collar: additional compensation for damages corresponding to six months‟ wages. 14 0 Brazil In the case of "unfair" dismissal, private-sector workers are entitled to an indemnity of 40% of the total amount deposited in their name in the Fundo de Garantia po Tempo de Servico (FGTS). The employer deposits 8% of the worker's monthly earnings into a saving account in the worker's name. The indemnity is paid over and above the deposits in the worker's FGTS account during the employment contract. Note that this applies only as of the fourth month of the employment contract, the first three months being considered, although not embodied in legislation, as a probationary period. The law provides for the possibility of reinstatement, but it is rarely used because of the indemnity paid through FGST. 7.7 1 Canada Depending on the circumstances of a case, an employer may be ordered to reinstate an employee. Employees discharged on prohibited grounds are entitled to compensation for wages and benefits lost by reason of the dismissal. Some statutes also provide that additional compensation may be ordered for pain and suffering or as punitive damages where an employer has engaged wilfully or recklessly in unlawful practices. .. 1 Chile There is no right or practice of reinstatement following unfair dismissal. In the event of unfair dismissal, the court can award payment of compensation in addition to severance pay of 30-100% of applicable severance pay, depending on the breach of legislation made. 7.2 0 China If an employer terminates or ends an employment contract in violation of the law, the worker can request reinstatement. If the worker does not request reinstatement or continued performance of the employment contract is impossible, the employer shall pay compensation equivalent to twice the severance pay to which the worker is entitled. 40 3 Czech Republic Reinstatement is always available to the employee. Unfair dismissal gives rise to a right to reinstatement. If reinstatement is not accepted by both parties, compensation is through severance pay and award of lost earnings during the court case (up to 6 months). Sums earned by the employee in the interim are set off against the award. There is no maximum amount for compensation. 8 3 Denmark Reinstatement orders are possible but rare (the possibility of reinstatement was introduced in the Main Agreement in 1981 - blue collar workers - but until now there have been only a few decisions in which a tribunal decided that the dismissed employee should be reinstated - Section 61 of the Labour code). For blue collar workers, compensation is limited to 52 weeks of pay for long service cases. Average is 10.5 weeks according to Danish Confederation of Trade Unions. For white collar workers, compensation depends on age and seniority with the firm and is increasing in both (maximum is 6 months for older than 30 with more than 15 years tenure). 9 1 Estonia If termination of an employment contract is declared unlawful, an employee has the right to reclaim his or her former job or position. In such a case, a labour dispute resolution body shall make a decision on reinstatement of the employee in his or her former job or position. Compensation up to six months wages, subject to the circumstances of the employment contract and the nature of the offence upon termination of the employment contract. 6 3 Finland No reinstatement. Compensation between 3 and 24 months. The following factors must be taken into account when determining the amount of compensation: estimated time without employment, estimated loss of earnings, duration of the employment relationship, and degree of guilt found on the side of employer. The highest compensations are used only in cases of gross injustice. 14 0 France The option of reinstatement is available to the employee in cases of discriminatory dismissal only. Compensation in addition to regular severance pay of six months minimum (generally 12-24 months, can be more) for employees with at least two years of tenure and working in enterprises with more than 11 employees. For employees with less than two years of service and/or working in a firm with fewer than 11 workers, the judge an order compensation according to the loss suffered, but without any minimum. 16 0 17 Legal provisions Typical compensation at 20 years tenure (months) Extent of reinstatement (scale 0-3) Germany Reinstatement is possible, although rarely taken up by the employee concerned. Compensation of up to 12 months, depending on length of service (15 months if aged under 50 and tenure >15 years, 18 months if aged over 55 and tenure >20). Compensation must be requested by employee or employer during court action; continuation of employment must be unreasonable for one of the parties. In some cases, additional liability for wages from the expiry date of the notice to the conclusion of the court hearing. 18 1.5 Greece Frequent reinstatement orders, accompanied by indemnity for the period of time between notice of termination and court ruling. No reinstatement, if severance pay has been requested. Compensation through regular severance pay, plus a sum equal to earnings between the dismissal and the legal settlement of the case. According to case law, any dismissal not justified by the employer's legitimate business interests is deemed to constitute unfair dismissal and is rendered null and void. The consequence of nullity in cases of unfair dismissal is that the contract of employment is deemed to have continued to exist without interruption (hence, no legal imposition of reinstatement is necessary) and the employer is obliged to pay the employee the remuneration due for the whole of the intervening period since the date of the nullified termination. 6 2 Hungary If a court of law declares that the employment was illegally terminated, the employee shall be reinstated to the original position if he/she requests. At the employer‟s request, the court may refrain from reinstating the employee to the original position provided that the employer pays compensation. In lieu of reinstatement, the court shall order (upon weighing all circumstances, in particular the unlawful action and its consequences) the employer to pay no less than two and no more than twelve months‟ average earnings to the employee. 10 2 Iceland If the termination is found to be unfair, the court does not typically order reinstatement. No information available on typical compensation. .. 0 India In most cases of unfair dismissal, the court orders reinstatement. In the event that a dismissal is found to be unfair, the court may reinstate the worker with or without back pay. In extreme cases where the employer argues strongly against reinstatement, the court may award compensation instead of reinstatement. Labour courts typically take 3-4 years to settle disputes and make an award. 42 3 Indonesia If the termination of employment takes place for reasons other than those allowed, it will be declared null and void and the employer shall be obliged to re-employ the affected worker. The employer is obliged to pay all the wages and entitlements which the affected worker should have received. 6 3 Ireland A reinstatement order, with back pay from the date of dismissal, is possible. Also re- engagement from date after date of dismissal with no back pay from date of dismissal also possible. Deciding body must specify why re-instatement/re-engagement not applied if compensation awarded. In 2007, reinstatement was ordered in one case and re- engagement was ordered in four cases. Maximum compensation equals 104 weeks‟ pay. Compensation awards based on financial loss. Maximum 4 weeks‟ award where no loss established. (Average Employment Appeals Tribunal award in 2007 was 7280 EUR.) 24 1 Israel In the private sector, the most common recourse following unfair dismissal is compensation, but the National Labour Court may order reinstatement in special circumstances. If the dismissal is in violation of the Employment of Women Law, the common route is reinstatement at the workplace. Compensation depends on the severity of the unlawfulness of the dismissal, the period of employment and the damage suffered. According to the Employment of Women Law (1954) the compensation is 150% of the wages the employee would have received had she worked during the period she was entitled to protection of the law. If an employee was dismissed because he filed a complaint against his employer or an employee of his employer, who violated a law at the workplace, the Labour Court is entitled to rule up to 50 000 NIS or 500 000 NIS punitive damages without proving damages. 7.5 1 Italy The option of reinstatement is fairly often made available to the employee. Workers in companies employing >15 employees in an establishment or in the same municipality or in companies with more than 60 employees (even if distributed in production units or municipalities with less than 15 employees) can choose reinstatement or financial compensation of 15 months‟ (plus at least 5 months‟ compensation for the period between dismissal and court decision in both cases). For establishments not included in the above cases, the employer can choose between re-employment (different from reinstatement because it does not give rise to compensation for the period between dismissal and the court decision) and compensation of 2.5-6 months (depending on seniority and firm size). This can be increased up to 10 months > 10 years, and 14 months >20 years seniority. 15 2 Japan Frequent orders of reinstatement with back pay. In lieu of reinstatement, compensation through regular severance pay, plus a sum equal to earnings between the dismissal and the legal settlement of the case. Sums earned by the employee in the interim can only partially be set off against the award. 6 3 20 Table 7 Regulation of fixed-term contracts (FTC) Legal provisions Valid cases for use (scale 0-3) Maximum number of successive contracts Maximum cumulated duration (months) Australia No legal limit specified for successive contracts or cumulated duration, but risk that, upon continuous renewal, the courts will find that the primary purpose of the contract is to avoid termination laws. 3 Scored 1.5 No limit Austria No restrictions for first contract. A succession of FTCs will automatically result in an open-ended employment contract of indeterminate length unless objective or material reasons can be shown to justify the need to renew a FTC. 2.5 Scored 1.5 No limit Belgium Four successive FTCs are permitted without specifying an objective reason (minimum 3 months), for up to two years in total, or for up to three years (minimum 6 months) with the authorisation of the social and labour inspectorate. In other cases, FTCs are restricted to objective situations in (replacement, temporary increase in workload, etc.). 2.5 4 30 Brazil A FTC will only be valid in cases where the nature of the job justifies establishment of a fixed term; the activities of the business are of a temporary or seasonal nature; or the contract is probationary. The contract may be extended once for a total period not exceeding two years. 0 2 24 Canada No restrictions. 3 No limit No limit Chile A second renewal of a FTC will be taken to be a contract of indefinite length. The duration of a FTC may not exceed one year (two years for managers or persons with a tertiary degree). A worker who has been employed intermittently under more than two contracts for 12 out of a continuous period of 15 months is presumed to be hired under a contract of indefinite length. 3 2 24 China If the worker has concluded two FTCs in succession, he/she is not characterised by any of the circumstances under which the employer may fairly dismiss him/her and his/her contract is up for renewal, the new contract will be taken to be an open-ended contract. If the worker has worked for the employer for at least 10 years in succession, the contract will be taken to be an open- ended contract. 3 2 120 Czech Republic The maximum duration of successive FTCs is two years. 3 No limit 24 Denmark FTCs allowed for specified periods of time and/or for specific tasks. Widely used, particularly in professional services and construction. Generally, there is no legal limit for the maximum number of successive FTCs, but renewal of FTCs must be based on objective reasons. There is no maximum cumulated duration set for FTCs, but the Danish Confederation of Trade Unions states that court rulings suggest that 2-3 years temporary employment entail notification procedures. 2.5 Scored 1.5 30 Estonia There are some valid cases for use of FTCs, other than "objective" or "material" situation. A FTC can be entered into not longer than 5 years. If an employment contract for completion of a specific task or for a temporary increase in work volume is entered into for the performance of the same work for more than two consecutive terms, each following FTC for the performance of the same work shall be deemed to be an employment contract entered into for an unspecified term. Maximum cumulated duration of successive FTCs in this case is 10 years. The law does not specify any limits to the number of FTCs if separate valid objective reasons for each new contract are given. 1 2 120 Finland Permitted for temporary replacements, traineeship, and special business needs (unstable nature of service activity, etc.). In case of successive contracts, justification of limitation of contract subject to court examination. 1 Scored 2.5 No limit France Restricted to “objective situations” (replacement, seasonal work, temporary increases in company activity). New FTCs are not allowed in the six months following a dismissal for economic reasons. The maximum duration of FTCs depends on the grounds for employing on a fixed-term basis. In principle, it is 18 months, but can vary from 9-24 months. A new contract in the same post can start only after a waiting period of one third of the initial contract length. 1 2 18 Germany FTCs without specifying an objective reason are possible up to 2 years or up to 4 years if an employer launches a new business. Exception: with employees over 52 years of age and unemployed for more than 4 months or who participated in a public employment measure for more than 4 months, FTCs are possible up to a duration of 60 months. Successive FTCs with objective reason are possible without any restrictions, but there must be an objective reason for each successive contract. 3 4 36 21 Legal provisions Valid cases for use (scale 0-3) Maximum number of successive contracts Maximum cumulated duration (months) Greece Objective situations only. If three renewals are made within a period of two years, then the contract is assumed to cover a constant need for the enterprise and consequently it is converted into an employment contract or working relationship of an indefinite term. If the duration of successive FTCs exceeds two years in total, then the contract is assumed to cover a constant need for the enterprise and consequently it is converted into an employment contract or working relationship of an indefinite term. 0 4 24 Hungary No restrictions for the first contract, except for public service (objective reasons only). Any FTC shall be deemed as indefinite if the contract is repeatedly established or extended without the employer having a legitimate reason to do so and this violates the employee's legitimate interests. The duration of a FTC may not exceed five years, including the duration of an extended contract and that of another FTC created within six months of the termination of the previous contract. 2.5 Scored 2.5 60 Iceland Maximum length of FTCs is 24 months including renewals. FTCs for managerial personnel are not time-limited. 3 No limit 24 India Temporary workers may be engaged for work which is essentially of a temporary nature likely to be finished within a limited time. Exemptions exist for some industries (information technology and business processing outsourcing) and export processing and special economic zones in some states. There are no limits on number of renewals or maximum duration. 1 No limit No limit Indonesia FTCs can only be made for certain jobs, which, because of the type and nature of the job, will finish in a specified period of time, that is: (a) work to be performed and completed at one go or work which is temporary by nature; (b) work whose completion is estimated at a period of time which is not too long and no longer than three years; (c) seasonal work; or (d) work that is related to a new product, a new activity or an additional product that is still in the experimental stage or try-out phase. FTCs may be made for a period of no longer than two years and may only be extended once for one year. 0 2 36 Ireland Employers do not have to justify recourse to initial FTC. No limit on number of contracts in case of objective grounds justifying renewal but some possibility for unfair dismissal/penalisation claims after successive contracts. The maximum cumulated duration of successive FTCs is 4 years. 2.5 No limit 48 Israel No restrictions. 3 No limit No limit Italy FTCs can be used for technical, production and organisational reasons including the replacement of absent workers (also referring to the ordinary activities of the employer). One renewal is possible provided that the duration initially agreed is less than three years. Further renewal possible with agreement of the labour authority. 2 2 36 Japan FTCs under three year duration widely possible without specifying an objective reason. The contract can be five years for highly skilled employees or those aged 60+. No legal limit on duration or number of contracts is specified; after repeated renewal the employee becomes entitled to expect renewal of his contract and the employer must have just cause to refuse renewal. 2.5 No limit No limit Korea The number of renewals is not limited within the 2-year limit for FTCs. If a fixed term worker is employed for more than two years, he/she is considered as a worker whose employment period is not fixed from the moment when the employment contract exceeds two years, except in the following exceptional cases: (i) the period needed to complete the project is fixed; (ii) the fixed-term worker is hired to fill a vacancy caused by a worker's temporary suspension from duty; (iii) the period needed to complete study at school or vocational training is fixed; (iv) the job is provided by the government as an unemployment or welfare measure, etc.; or (v) the job requires professional knowledge and skills. 3 No limit 24 Luxembourg FTCs can be used to replace temporarily absent employees (except where the absence is due to an industrial dispute), where the work is of a seasonal, temporary, urgent or occasional nature, in response to a temporary increase in work in the enterprise, to hire approved categories of unemployed persons registered with the Employment Administration (authorisation takes into account age, training and duration of unemployment), and, with the authorisation of the Labour Ministry, employment intended to promote the hiring of some categories of workers or to engage in training. A FTC can be renewed twice. Some categories of workers (teachers, artists, performers, athletes, coaches) are not subject to restrictions on renewals of FTCs. A FTC cannot exceed 24 months in duration (including renewals). FTCs for seasonal work cannot exceed 10 months in a 12 month period. 0.5 3 24 22 Legal provisions Valid cases for use (scale 0-3) Maximum number of successive contracts Maximum cumulated duration (months) Mexico Restricted to objective situations (replacement, temporary increase in workload, work on a project that is itself of a fixed-term nature, etc.), with the exception of a few occupations. Extent of use determined in consultation with union delegates. No limit on number of contracts or duration specified, negotiable by both parties. If the FTC is to perform work of a fixed-term nature, the contract will extend as long as the work extends. 0.5 No limit No limit Netherlands Maximum of three successive FTCs is allowed not exceeding a period of three years. A fourth renewal or a renewal exceeding a total period of three years will alter the FTC automatically into an indefinite contract. The number of renewals and/or maximum duration can be altered by collective agreement. 3 3 No limit New Zealand The employer must have genuine reasons based on reasonable grounds for specifying that the employment of the employee is to be fixed term. The following reasons are not genuine reasons for agreeing to a FTC: to exclude or limit the rights of an employee; or to establish the suitability of the employee for permanent employment. No limit on number of contracts or maximum duration specified, but there is a risk that upon continuous renewal the Courts will find a FTC to be a “sham”. 2 Scored 4 No limit Norway FTCs are valid when warranted by the nature of the work and the work differs from that which is ordinarily performed in the undertaking, for work as a temporary replacement for another person, trainee, participants in labour market schemes under the auspices or in cooperation with the Labour and Welfare Service, athletes, trainers, referees and other leaders within organised sports, chief executives of firms and when necessary as a result of an agreement with a foreign state or international organisation. National unions may enter into collective agreements with an employer or employers' association concerning the right to make temporary appointments within a specific group of workers employed to perform artistic work, research work or work in connection with sport. If the collective agreement is binding for a majority of the employees within a specified group of employees at the firm, the employer may on the same conditions enter into temporary contracts of employment with other employees who are to perform corresponding work. In case of successive contracts, justification of limitation of contract is subject to court examination. The provisions concerning termination of employment relationships shall apply to employees who have been employed on FTCs for more than four consecutive years, with the exemption of trainees, participants in labour market schemes and sportspeople. 1 Scored 1.5 48 Poland Two successive FTCs are allowed, without a limit on maximum duration. 3 2 No limit Portugal Permitted for business start-ups, launching a new activity of uncertain duration and recruiting workers in search of their first job and long-term unemployed. Four successive contracts are permitted with a maximum duration of 3 years when there is a fixed date of termination or six years where there is no fixed date of termination (e.g. for completion of a particular task). 2 4 54 Russian Federation A FTC can be concluded on the initiative of the employer or the employee for a large number of reasons including replacing a temporarily absent employee, performing temporary, urgent or seasonal work, in small businesses or in organisations established for predetermined term, for employees engaging in training, working part-time or in specified industries and occupations, or for managers or old-aged pensioners. No limits on renewals within maximum duration of 5 years. 2 No limit 60 Slovak Republic A FTC may be agreed, extended or renewed for a maximum of three years without specifying an objective reason. FTCs may only be extended or renewed once within the 3-year period. Another extension or renewal of FTCs may only be agreed for material or objective reasons. 3 No limit 36 Slovenia FTCs can be used where allowed by law (e.g. project work, substitution, managerial workers), a firm-level collective agreement; or a sector-level collective agreement for small employers. Employers may not conclude one or more successive FTCs with the same worker for the same job for which the uninterrupted duration would be longer than two years. For small employers, a three-year time limit is applicable up to 2010. 2 No limit 30 South Africa No maximum duration, but if renewed 3-4 times and the employee had a reasonable expectation that the contract would be renewed again and it is not renewed, then this may constitute dismissal. The onus is on the employee to show that he/she had a reasonable expectation of the contract being renewed. 3 Scored 4 No limit Legal provisions Valid types of work (scale 0-4) Restriction on the number of renewals Maximum duration (months) Registration and reporting Equal pay and conditions Czech Republic The maximum duration of successive TWA contracts is two years. Agencies are required to obtain authorisation and report regularly. TWA workers must receive equal treatment to equivalent workers in the user firm. 4 No 24 Yes Yes Denmark No restrictions on renewals or duration but the Danish Confederation of Trade Unions states that court rulings suggest that 4-5 renewals entail notification procedures and that there is no limit on duration if employment pauses in between contracts. TWA workers must receive equal treatment regarding pay and working conditions. 4 No No limit No Yes Estonia There are no restrictions on renewals or duration and no authorisation or reporting requirements. TWA workers should receive equal pay and conditions to regular workers in the user firm. 4 No No limit No Yes Finland No limits on duration or renewals, but TWA workers must receive equal treatment regarding pay and working conditions. 4 No No limit No Yes France Limited to “objective situations” similar to FTCs. One prolongation is possible. A new contract in the same post can only start after a waiting period amounting to one third of the initial contract. Maximum duration is 18 months in principle but can vary from 9-24 months depending on the reason. Agencies must receive special administrative authorisation. TWA workers must receive equal treatment regarding pay and conditions of work as equivalent workers in the user firm. 2 Yes No limit Yes Yes Germany Generally permitted, with exception of construction industry. No limits on duration, but renewal limits are the same as for FTCs. Agency must gain permission of the labour authority and report regularly. Equal treatment on pay and conditions, but the principle of equal treatment can be waived as far as the employees are protected by applicable collective agreements in the TWA sector. 3 Yes No limit Yes Yes Greece The length of time the temporary worker is employed may not exceed eight months. A renewal with the same indirect employer is permitted, on the condition that the total length of the renewal does not exceed eight months, and thus the existing employment contract is not converted into an open-ended contract. In the event the employee continues in the employment of the indirect employer after the contract and any renewal thereof expires for a period of over two months, the employee's contract with the TWA shall be deemed to have been converted into an open-ended employment contract between the employee and the indirect employer. Setting up a TWA requires administrative authorisation from the Ministry of Employment and Social Protection. The TWA is obliged to submit a report of activity to the Ministry of Employment and Social Protection every six months. The contract concluded between the TWA and the employee determines, among other things, the amount of the employee's pay, which cannot be lower than that set by the sectoral, occupation-based or enterprise-level collective agreements applicable to the indirect employer's staff. There is no requirement for working conditions other than health and safety to be the same for regular and TWA workers. 4 Yes 16 Yes Pay Hungary It is forbidden to hire TWA employees for unlawful work, to break a strike or if the same employee had their employment with the user firm terminated in the last six months during the trial period or by ordinary dismissal for reasons to do with the employer‟s operations. Where a fixed-term TWA contract is renewed or extended between the same parties without any connected justified interest of the employer and the conclusion of the renewed/extended contract is aiming to derogate the justified interests of the employee, the employment relationship shall be regarded as indefinite term. A TWA must be seated in Hungary and either a limited liability business association, a non-profit company or a cooperative. It must satisfy the requirements prescribed in the Labour Code and in other legal regulations and must be registered by the public employment agency. Once a year, TWAs shall give certain data about workers to the public employment agency where they are registered. Equal treatment on conditions shall be granted for TWA workers from the first day of the employment. Equal treatment on wages shall be granted after six months employment at the same user firm. 4 Yes No limit Yes Yes Legal provisions Valid types of work (scale 0-4) Restriction on the number of renewals Maximum duration (months) Registration and reporting Equal pay and conditions Iceland TWAs are not permitted to hire out a worker to a user firm if the worker has worked directly for the user firm in the previous six months. TWAs must notify and report regularly to the Directorate of Labour. TWA workers enjoy the same rights as guaranteed to other workers and shall receive the same pay and benefits as agreed in collective agreements. 4 No No limit Yes Yes India Generally allowed for non-core activities, with some industries or firms prohibited from using TWA workers. There are no limits on duration or renewals. Contractors and user firms with more than 20 employees are required to obtain a license (and pay a fee and security deposit) before engaging contract workers. The license is valid for 12 months, after which it can be renewed by following the same procedure. The contractor is required to report any changes in the number of workers employed or their conditions of work to the licensing authority. The wage rates and working conditions of the contracted worker must be the same as those of a worker employed directly by the user firm to do the same type of work. 2 No No limit Yes Yes Indonesia TWA workers must not be used by employers to carry out their enterprises‟ main activities or activities that are directly related to production processes, except for auxiliary service activities or activities that are indirectly related to production. TWA workers are employed either on contracts of unlimited duration or FTCs. TWAs shall take the form of a legal entity business with license from a government agency responsible for labour. There are no requirements for equal treatment. 2 No No limit Yes No Ireland There are no restrictions on duration, renewals or requirements for equal treatment. In order to operate, a TWA must obtain a license from the Minister of Enterprise, Trade and Employment. 4 No No limit Yes No Israel An employee of a TWA shall not be employed with the user firm for a continuous period in excess of nine months. Employment will be deemed to be continuous even where employment has ceases for a period of up to nine months. The Minister of Industry, Trade and Labour may give his approval for an employee to be employed with a user firm for a period in excess of nine months provided that the total period of employment with the user firm does not exceed 15 months. TWAs must obtain a license by applying to the Minister of Industry, Trade and Labour. The license shall be granted for one year and may be renewed for periods of one year at a time. TWAs must report to the Minister once a year on their activities. The Minister has the authority to revoke or not to renew the permit. The TWA has to provide a guarantee ensuring workers' rights to the Labour Law Enforcement Administration. The provisions of a collective agreement applying at the user firm apply to TWA workers working at that firm. Where more than one collective agreement covers a TWA worker, the most favourable to the worker will apply. But if the working conditions of the TWA workers were regulated according to a general collective agreement, on which an extension order was issued, equalising the conditions of work will not apply. 4 No 9 Yes Yes Italy TWA contracts can be used for technical, production and organizational reasons including the replacement of absent workers and for types of work normally carried out by the enterprise. Collective agreement may lay down upper limits for the use of temporary workers. In addition to TWA workers there now exists staff leasing i.e. supply of workers on permanent contracts, excluding for firms which have resorted to collective dismissals in the previous six months. There is no legal maximum duration of TWA contracts, but it is set by collective agreements applied by TWAs. To obtain administrative authorisation, the agency must be based in Italy, have a minimum capital stock, sufficient qualified staff, presence in at least four regions and have labour supply as its main activity. Periodic reporting is necessary to maintain the administrative authorisation. 3 Yes No limit Yes Yes Legal provisions Valid types of work (scale 0-4) Restriction on the number of renewals Maximum duration (months) Registration and reporting Equal pay and conditions Japan "Dispatching agencies" allowed for all occupations except port transport services, construction work, security services, medical-related work at hospital etc. In the 26 original occupations, there is no limit for occupations that need special employment management and 36 months for occupations that need specialised knowledge. In all other allowed occupations, there is no limit for the duration of the TWA contract itself, but the possible duration in which temporary work service is offered is 36 months maximum. Setting up a TWA requires the permission or notification of the Ministry for Health, Labour and Welfare. After set-up, the TWA is required to report on its operations once a year. Legally, user firms should endeavour to take necessary measures concerning dispatched workers to maintain an appropriate workplace. The labour conditions of dispatched workers are secured by making the user firm employer subject to the parts of the relevant laws on labour protection and apportioning responsibilities between the TWA and the user firm. 3 No 36 Yes Yes Korea TWA employment, in principle, is allowed in only 32 occupations determined by consideration of professional knowledge, skills, experience and the nature of jobs. However, where TWA employment is required for temporary or intermittent reasons, it is possible to use it in other occupations. In some occupations, such as construction work, seaman, harmful and dangerous work, work with dust, etc., the use of TWA employment is completely prohibited. The maximum duration of TWA contracts is two years in case of the 32 occupations for which TWA employment is allowed. But in the case of temporary and intermittent reasons, the duration of TWA contracts is three months in principle and can be extended for up to another three months, bringing the maximum duration to six months. The set-up of a TWA requires administrative approval and the approval should be renewed every three years. With regard to worker dispatch services (the business of providing TWA workers), a report should be made to the competent authorities every six months. If a TWA worker is engaged in a job that is the same as or similar to that done by a worker of the user firm, both sending and using employers should not discriminate against the TWA worker in terms of wages or other working conditions without reasonable cause, and the worker who was discriminated against can file a discrimination claim with the Labor Relations Commission. 2.5 No 24 Yes Yes Luxembourg TWA workers may be employed to replace an absent or employee whose employment contract is suspended for a reason other than labour dispute or to replace an employee whose position became vacant before the entry into service of his successor; for seasonal jobs; for jobs in specific sectors or occupations where the nature of the work is temporary; or to perform urgent work. Except for seasonal jobs, the contract should not exceed 12 months in duration for the same employee in the same job, including up to two renewals. TWAs require authorisation from the Ministry of Labour, which is granted initially for 12 months. A request for extension of authorisation must be made three months before the expiry of the authorisation. If granted, authorisation runs for a further two years. After a period of three years of authorised operation, the agency will be granted unlimited authorisation. A TWA worker is required to receive the same pay and conditions as an employee with the same or an equivalent qualification hired by the user firm as a permanent employee. 2 Yes 12 Yes Yes Mexico TWA contracts are illegal. 0 n/a n/a n/a n/a Netherlands Generally permitted, with the exception of seamen. Legally no renewals are allowed in the first half year. This period has been extended by collective agreement to 78 weeks. Then a maximum of eight renewals of TWA contracts each for a period of 3 months. After 3.5 years of successive TWA contracts, the last contract will be a contract for an indefinite period with the TWA. Equal treatment is required on pay and conditions, but can deviate from this regulation by collective agreement. 3.5 Yes 42 No Yes New Zealand No limit on duration or renewals, unless it is shown that the employer does not have genuine reasons based on reasonable grounds. 4 Yes No limit No No 30 Table 9 Procedures for collective dismissals: definition and notification requirements Definition of collective dismissal Notification requirements Australia Termination of 15+ employees for reasons of an economic, technological or structural nature, or for reasons including such reasons. Employee representatives: Obligation to inform and consult with employees and trade union (if requested by an affected employee). Public authorities: Notification of competent labour authorities. Austria Within 30 days, 5+ workers in firms 20-99; 5%+ in firms 100-599; 30+ workers in firms>600; 5+ workers >50 years old. Employee representatives: General duty to inform the Works Council about changes affecting the business. Public authorities: Notification of local employment office. Belgium Within 60 days, 10+ workers in firms with 20- 99 employees; 10%+ in firms with 100-300; 30+ workers in firms with 300+ employees. Employee representatives: Obligation to inform and consult with the Works Council or trade union delegation. Public authorities: Notification of sub-regional employment office, reporting on the results of consultations giving full information of planned dismissals. Brazil There are no special regulations or additional costs for collective dismissals. The matter may be covered by collective bargaining. There are no special regulations or additional costs for collective dismissals. The matter may be covered by collective bargaining. Canada Varies by jurisdiction. Within a period of 4 weeks, 50+ employees in federal jurisdiction, Alberta, Manitoba, Newfoundland, Labrador, Ontario (some exceptions) and British Columbia (in 2 month period). Between 10+ and 25+ employees in other jurisdictions. No collective dismissal provisions in Prince Edward Island. Employee representatives: a copy of the notice must be given to the bargaining agent of each affected employee in the federal jurisdiction, British Columbia, Manitoba, New Brunswick, Quebec and Saskatchewan. In some jurisdictions, a collective dismissal notice must also be posted in conspicuous places in the workplace. Public authorities: in all jurisdictions (except Prince Edward Island), the employer must notify the competent labour authorities (e.g., Minister of Labour). Chile There are no special regulations or additional costs for collective dismissals. There are no special regulations or additional costs for collective dismissals. China 20+ employees (or <20 employees where they account for at least 10% of the workforce) due to restructuring, bankruptcy or serious economic hardship. Employee representatives: Employer must explain the circumstances to the labour union or all of the staff and workers. Public authorities: Dismissal plan must be reported to the labour administrative department. Czech Republic Within 30 days, 10+ employees in firm with 20- 100 employees; 10% of employees in firm with 101-300; 30 employees in firm with 300+. Employee representatives: Duty to inform competent trade union. Public authorities: Notification of district labour office. Denmark Within 30 days, >9 workers in firms 21-99 employees; >9% in firms 100-299; >29 workers in firms 300+ employees. Employee representatives: Notification of Regional Employment Council (tripartite council). Estonia Within 30 days, 5+ employees in firm with <20 employees; 10+ employees in firm with 20-99; 10%+ in firm with 100-299; 30+ in firm with 300+. Employee representatives: Employer has the obligation to inform and consult with representative of employees. Public authorities: Employer must apply for the approval of the labour inspectorate. Finland >9 workers in firms >20 employees, in case of dismissal for financial or production-related reasons. Employee representatives: Consultation with trade union or personnel representatives. Public authorities: Notification of local employment office. France No specific definition of collective dismissal in the Labour Code. Requirements in the case of more than 10 dismissal within 30 days are nevertheless significantly more onerous. Employee representatives: Full information to be given to personnel delegates or Works Council and consultation meetings to be held. Public authorities: Notification of departmental labour market authorities (DDTEFP). Germany Within 30 days, >5 dismissals in firms 21-59 employees; 10% or > 25 dismissals in firms 60-499; >30 dismissals in firms > 500 employees. Employee representatives: Consultation with Works Council. Public authorities: Notification of local employment office. Greece Within a month, >4 workers in firms 20-200 employees; >2% or >30 workers in firms >=200 employees (at the beginning of the month). Employee representatives: Notification of reasons to employee representatives. Public authorities: Notification to Prefect and Labour Inspection, with request for approval. Hungary 10+ workers in firms 20-99 employees; >10% in firms 100-299; 30+ workers in firms 300+ employees. Employee representatives: Consultations with the local works council or, in the absence of a works council, with the committee set up by the local trade union branch and by workers‟ representatives. Public authorities: Notification of local employment office. Iceland Within 30 days, 10+ employees in firms with 20-99 employees; 10%+ in firms with 100-299 employees; 30+ in firms with 300+ employees. Employee representatives: Consultations with the workers‟ representatives or with the workers. Public authorities: Notification of regional employment office. India There are no special regulations or additional costs for collective dismissals. There are no special regulations or additional costs for collective dismissals. Indonesia There are no special regulations or additional costs for collective dismissals. There are no special regulations or additional costs for collective dismissals. 31 Definition of collective dismissal Notification requirements Ireland Within 30 days, 5+ workers in firms with 20-49 employees; 10+ workers in firms with 50-99; 10%+ in firms with 100-299; 30+ in firms with 300+ employees. Employee representatives: Duty to inform and consult with competent trade union or other representatives of employees whether unionised or not. Public authorities: Notification of Ministry competent for labour and employment. Israel Within one month, 10+ workers. Collective agreements may contain different definitions of collective dismissal. Public authorities: Notification of the Employment Service Bureau. Italy In firms with 15 and more employees and over a period of 120 days, 5+ workers in a single production unit; 5+ workers in several units within one province. Employee representatives: Duty to inform employee representatives and competent trade union and set up a joint examination committee. Public authorities: Notification of labour authorities (at local, regional or national level, depending on size of redundancy). Japan Firms intending to dismissal 30+ workers in one month face additional notification requirements. Employee representatives: Courts may require that the firm has engaged in sincere negotiation with the trade union prior to making dismissals when deciding whether dismissals are justified. Public authorities: Notification of the public employment service. Korea 10+ workers in firms <100 employees; 10%+ in firms 100-999; 100+ workers in firms >1000 employees. Employee representatives: Information and sincere consultation with trade union/employee representatives. Public authorities: Notification to Ministry of Labour, but there are no sanctions for failing to notify. Luxembourg Within 30 days, 7+ workers; within 90 days, 15+ workers. Employee representatives: Notification of the works council. Public authorities: Notification of the labour inspectorate. Mexico Unspecified number to be dismissed for economic reasons; provisions restricted to companies with 20+ employees. Employee representatives: Duty to inform and consult with trade union/employee representatives. Public authorities: Notification to Conciliation and Arbitration Board if no agreement with union can be found. Netherlands Over 3 months, 20+ workers dismissed by one employer in one employment service region. Employee representatives: Duty to inform and consult with Works Council and trade union delegation. Public authorities: Notification of regional employment office. New Zealand No definition of collective dismissal. Employee representatives: No special regulations for collective dismissal. Good faith applies to redundancy and requires consultation with employees and unions over matters that affect collective employment interests. This covers prior consultation over matters such as how to avoid dismissals. Norway 10+ employees within a month. Employee representatives: Duty to inform and consult with trade union/employee representatives. Public authorities: Notification of Labour and Welfare Administration. Poland 10 workers in firms 20-100. 10% in firms <300. 30 workers in firms with >300 Employee representatives: Duty to inform competent trade union. Public authorities: Notification of local employment office. Portugal Within 90 days, dismissal of 2+ workers in firms <51 employees; 5+ workers in firms 51+ employees for structural, technological or market motives. Employee representatives: Duty to inform and consult with Works Council or trade union delegation. Public authorities: Notification of Labour Inspectorate. Russian Federation Mass dismissal is defined in industrial and (or) territorial agreements. Additional regulations typically apply from 50 dismissals upwards. No additional requirements. Slovak Republic Within 90 days, 20+ workers. Employee representative: Duty to inform the competent trade union body. Public authorities: Notification of the National Labour Office. Slovenia Within 30 days, 10+ workers in firm with 20-99 employees; 10%+ in firm with 100-299; 30+ workers in firm with 300+. Within 3 months, 20+ workers for business reasons. Employee representatives: Duty to inform and consult with trade union. Public authorities: Notification of the Employment Service. South Africa 10+ employees in firm with 51-200 employees; 20+ employees in firm with 200-300; 30+ in firm with 300-400; 40+ in firm with 400-500; 50+ in firm with 500+ employees. No additional requirements. Spain Within 90 days, 10+ workers in firms <100 employees; 10%+ in firms 100-299; 30+ workers in firms 300+ employees. Employee representatives: Duty to inform and consult with Works Council or trade union delegation. Public authorities: Notification of labour authority. Sweden Additional notification requirements apply where more than 5 employees are made redundant. Employee representatives: Duty to inform and consult with competent trade union. Public authorities: Notification of Employment Agency. Switzerland 10+ workers in firms 20-99 employees; 10%+ in firms 100-299; 30+ in firms with 300+ employees. Employee representatives: Obligation to inform and consult with Works Council or trade union delegation. Public authorities: Duty to notify cantonal employment service. Turkey Within one month, 10 workers in firms with 20- 100 employees, 20 workers in firms with 101- 300, 30 workers in firms with 300+ employees. Public authorities: Duty to notify regional employment office of number and categories of employees to be dismissed, reasons and periods planned for dismissals. 32 Definition of collective dismissal Notification requirements United Kingdom Within 90 days, 20+ employees. Employee representatives: Duty to inform and consult with recognised trade union or other elected employee representatives. Public authorities: There is a requirement to notify the Department for Business, Enterprise and Regulatory Reform (BERR). United States Within 30 days, in firms with 100+ employees, 50+ employees in case of plant closure; 500+ workers in case of layoff; 50-499 workers, if they make up at least one third of the workforce. Employee representatives: Duty to inform affected workers or labour unions (where they exist). Public authorities: Duty to notify state and local authorities. 35 Delays before notice can start Other special costs to employers Luxembourg Social plan must be finalised within 2 weeks, after which, individual notification can be given to workers after 75 days. Type of negotiation: Once notification has been given, negotiations start on a social plan. Selection criteria/severance pay: The social plan typically contains internal and external reclassification measures and the amount of additional compensation payable. Mexico No special regulations for collective dismissal. Type of negotiation required: Negotiation with employee representatives on conditions and procedures of dismissal. If no agreement is reached, agreement by Conciliation and Arbitration Board on terms of dismissal required. Selection criteria: Usually seniority-based. Netherlands 30 days waiting period to allow for social plan negotiations (unless the social partners have agreed in writing to refrain from the waiting period). Type of negotiation required: Consultation on alternatives to redundancy and ways to mitigate the effects ; social plan will normally be agreed outlining transfers, re-training, early retirement measures and financial compensation. Selection criteria: “Mirror-image” of existing workforce (age balance of the workforce). Severance pay: No legal entitlement, but social plans often contain severance pay or top-ups to unemployment benefits. Severance pay through social plans is often lower than for individual dismissals. New Zealand No special regulations for collective dismissal. Type of negotiation required: No legal requirements apart from procedural fairness and consultation requirements. (Part of the review of the ERA involves looking at providing employment protection for employees where the work they are performing is contracted out, sold, or transferred to another business.) Selection criteria: The duty of good faith requires than an employer‟s basis for redundancy selection be fair. In redundancy situations employees providing certain services (cleaning and food catering, laundry services in hospitals, age-related residential care facilities and the education sector, orderly services in hospitals and the age-related residential care facilities and caretaking in the education sector) have the right to transfer to a new employer on the same terms if they wish. Norway 30 days waiting period after notification of employment service. Type of negotiation required: Consultation on alternatives to redundancy and selection standards. Selection criteria: Accepted custom is by seniority, but recent case law gives more weight to business needs. Poland Information to trade union 20 days before implementation and notification of PES before start of notice period. Type of negotiation required: Agreement to be reached with trade union on alternatives to redundancy and ways to mitigate the effects. Selection criteria: Law lays down union participation, but no specific selection criteria for dismissal. Severance pay: 1 month <2 years of service; 2 months <8 years; 3 months 8+ years. Portugal No additional delays Type of negotiation required: Consultation on alternatives to redundancy, selection standards and ways to mitigate the effects. Note: The criteria for collective dismissal are less strict than for individual dismissal because collective dismissal without fault is possible without the need to retrain or transfer workers to another post and without priority rules based on tenure or occupation. Russian Federation Employer must inform the trade union in writing three months prior to the dismissals taking effect. No additional requirements. Slovak Republic Employer is obliged to discuss dismissals with trade union or employee representatives at the latest one month before the commencement of collective redundancies. Type of negotiation required: Consultation with the relevant trade union body on alternatives to redundancy and measures for mitigating the adverse consequences of collective redundancies of employees. The competent trade union body may submit comments relating to collective redundancies to the National Labour Office. An employer shall negotiate with the National Labour Office such measures enabling prevention of collective dismissal or its limitation, in particular over: conditions for maintaining employment; possibilities of employing discharged employees with other employers; possibilities of discharged employees applying themselves at work in the event of their retraining. Slovenia Dismissal cannot take place until 30 days after notification of the employment service. The employment service may request that the deadline be extended to 60 days. Type of negotiation required: The employer is bound to formulate a programme of worker redundancy that must be financially validated and take into account possible proposals from the employment service on measures to prevent or limit the termination of employment of workers and measures to mitigate the damaging consequences of terminating employment. 36 Delays before notice can start Other special costs to employers South Africa If requested by the employer or employee representatives, the Commission for Conciliation, Mediation and Arbitration must appoint a facilitator within 15 days of the retrenchment notice. If a facilitator has been appointed, the employer may give notice of termination after 60 days of the appointment of the facilitator. If a facilitator has not been appointed, the employer may give notice of termination after 48 hours. Type of negotiation: None required by law, although the negotiation of social plans is common in the public service or state enterprises. Spain Employer should apply for authorisation and open a period of consultation of 30 days (15 days in enterprises of less than 50 workers) with employee representatives. If this period ends with an agreement, the labour authority issues within 15 days a resolution authorising the expiry of the contracts. If no agreement has been reached, the resolution, issued within 15 days, will accept or reject the expiry of all of part of the contracts applied for. Type of negotiation required: Consultation on grounds for labour force adjustment plan and no possible avoidance of reduction of their effects, as well as on the measures needed to alleviate their consequences for the affected workers and to allow for the continuity and feasibility of the business. Selection criteria: None, except for priority to legal representatives of employees. Sweden Waiting periods after notification of employment service are from 2 months (when 5-24 workers involved) to 6 months (when 100+ workers involved). Type of negotiation required: Consultation on alternatives to redundancy, selection standards and ways to mitigate the effects ; notice may not take effect before negotiation with trade union. Selection criteria: Usually based on seniority within a job category, but deviations by collective agreement are possible. Switzerland Maximum 30 days waiting period. Type of negotiation required: Consultation on alternatives to redundancy and ways to mitigate the effects; obligation to negotiate a social plan frequently contained in collective agreements. Severance pay: No legal requirements, but often part of social plans. Turkey 1 month waiting period starting from the notification to public authorities. Type of negotiation required: After the notification procedure, consultation of the relevant trade union body on alternatives to redundancy and way to mitigate the effects. Selection criteria: Usually employer prerogative. United Kingdom Dismissals may not take effect until 30 days after notifying BERR if 20-99 workers are involved, and 90 days when 100+ workers are involved. Type of negotiation required: Consultation on selection standards and dismissal procedures. Selection criteria: No criteria laid down in law, except for prohibition of discrimination. Often mix of seniority and performance-based criteria. United States Special 60-day notice period. Exceptions to the notice period include layoffs due to risk of bankruptcy, unforeseen circumstances, or ending of a temporary business activity. Type of negotiation required: No legal requirements. Selection criteria: As laid down in collective agreements or company manuals; usually seniority-based.
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