III‑
Rulemaking‑ Public Policy
•
Very tight controls on ability of employer
to layoff employees
•
2002 law bans psychological
harassment and addresses issues of
stress at work
•
Others include sickness, maternity,
severance, family allowances, unfair
dismissal, and minimum wage
Very tight controls on ability of employer to layoff employees
Can only be used as last resort
Must be negotiated with the Works Council and if no agreement must be submitted to arbitration
Often not allowed but when layoffs are allowed they are usually accompanied by generous severance provisions
2005 government legislated to make it easier to layoff employees during their first two years
Others include sickness, maternity, severance, family allowances, unfair dismissal, and minimum wage
Minimum wage indexed to inflation and much higher than US minimum wage