Study: Cheaper to dismiss Slovak staff than western Europeans

THE COST of laying off an employee in Slovakia is still lower than in western European countries the latest study by Deloitte Legal entitled International Dismissal Survey has revealed.

The study which compared the conditions and costs of dismissal in 31 countries revealed that lay offs are most expensive in Italy, Sweden, Belgium and Luxembourg.

Slovakia was among countries with relatively higher dismissal costs only when the affected person had medium/long term employment and at the same time the dismissal concerned the termination of their work contract due to organisational changes (meaning cutting jobs, slimming departments or bankruptcy of whole plants).

“When it comes to experienced employees and those without experience, we’re still rather at the tail end of the chart,” said lawyer Robert Minachin, as quoted by the TASR newswire.

The costs are similar to Slovakia in other countries of central and eastern Europe, the SITA newswire wrote on August 17.

The only exception to this rule is in Slovakia terminating employment for employees who have a medium length experience for organisational reasons. In cases of experienced employees and people without previous experience, we are rather on the bottom end of the chart, Minachin told SITA.

The study takes into consideration average costs to the employer when covering the overall claims during layoffs. All factors were considered - apart from the minimum amount of severance pay - also the damage compensations paid above the standard required by law. Generally, the decisive factor is mostly the length of employment and the term of notice period.

In most countries, the difference between the costs of layoffs for organisational reasons and instances where an employee leaves of their own free will (e.g. health reasons, or low performance) are minimal, SITA wrote.  

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