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Employment protection refers both to regulations concerning hiring (e.g. rules favouring disadvantaged groups, conditions for using temporary or fixed-term contracts, training requirements) and firing (e.g. redundancy procedures, mandated prenotification periods and severance payments, special requirements for collective dismissals and short-time work schemes).

Various institutional arrangements can provide employment protection: the private market, labour legislation, collective bargaining arrangements and not the least, court interpretations of legislative and contractual provisions. Some forms of de facto regulations are likely to be adopted even in the absence of legislation, simply because both workers and firms derive advantages from long-term employment relations.

Source Publication:
OECD Employment Outlook, June 1999, Chapter 2, Employment Protection and Labour Market Performances, page 51.

Cross References:
Employment protection legislation (EPL)

Statistical Theme: Social and welfare statistics - Social protection

Created on Thursday, May 2, 2002

Last updated on Wednesday, January 4, 2006