The bigger the seniority of the employee, the bigger their costs – significantly. Thus, according to the scenario that presupposes high seniority at work, Romania ranks 3rd as regards the dismissal costs, according to the research by Deloitte Legal, represented in Romania by Reff & Associates.
The research is correlating the layoff procedures in 31 countries and shows that the West European countries are facing, in general, bigger costs as compared to those of the Central Europe. In all of the countries participating in the research, seniority in a company is the determining factor in setting the redundancy costs’ level. Nevertheless, more than half of the countries participating in the study have set a maximum limit as regards the compensation during the notice period or upon the termination of labour contracts, or as regards both these situations.
Unlike Romania, more than 60 percent of the countries participating in the research offer a redundancy compensation package that includes the whole payment package applicable to the employee, not just the basic salary.
In more than 70 percent of the countries participating in the study (most of the East European countries, France, Italy, the United Kingdom), in addition to compensation for the notice period, the employer should also pay an additional sum to reach an understanding with the employee to be dismissed. (source: nineoclock.ro)