Dismissal Law under Challenge: New Risks for Workers

Dismissal law protects those who are sometimes referred to as ‘insiders’, that is, workers whose employment is well protected. As a rule, there are four aspects to this protection. First, the law requires that there has to be good reason for any termination of the employment contract by the employer. Second, the termination is subject to procedural constraints ensuring that the reason for the dismissal is stated and that worker representatives, as provided for under the national system, are involved. Third, if the employer's action leads, in fact, to loss of employment, financial compensation must be paid. Finally, in the event of dismissal, workers must have access to a judicial body (or some other independent authority) which will scrutinise the employer's reason for the dismissal and, if the dismissal is found to be unfair, sanction the employer. To differing degrees, it is these four elements which are now under challenge.