Employment protection legislation

Employment protection legislation (EPL) includes all types of employment protection measures, whether grounded primarily in legislation, court rulings, collectively bargained conditions of employment, or customary practice.[1] The term is common among circles of economists. 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).

There exist various institutional arrangements that 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.[2]

  1. ^ OECD Employment Outlook, June 1999, Chapter 2, Employment Protection and Labour Market Performances, page 50.
  2. ^ OECD Employment Outlook, June 1999, Chapter 2, Employment Protection and Labour Market Performances, page 51.

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