Redundancy block only in Italy. How the rules of other countries work

Redundancy block only in Italy. How the rules of other countries work
Redundancy block only in Italy. How the rules of other countries work

Another sign that the truly decisive measure in recent months is the “advantageous” Cig: if companies, in fact, have access to this Cig, they do not dismiss, because firing costs in terms of procedures, compensation and possible appeals. After all, the mediation developed by the technicians of Palazzo Chigi precisely to all these international examples has been redone, linking the discounted cig to the blocking of layoffs.

The impact on the labor market

But what impact did these different regulatory measures adopted across the Alps have on their respective labor markets? In other words, has the lack of a general ban on dismissal produced heavy job losses in Germany, France, Spain, the United Kingdom? An initial response to these questions has come in recent days from the EU commission.

Which highlighted how the average total elasticity of employment in the EU – which measures the reactivity of employment to changes in economic activity – was 0.25 in 2020, compared to an elasticity of 0.24 for the ‘Italy.

For some countries, such as Germany and France, the elasticity of employment is even lower, meaning those countries have managed to contain the impact on the labor market without resorting to restrictive measures such as a complete ban on redundancies.

In summary, the decline in employment compared to GDP in Italy was in the European average and worse than France, Germany. On the other hand, it was better than Portugal and Spain. For all these reasons, the EU commission believes that the prohibition on dismissal, the longer it remains in force, “it could even prove counterproductive as it hinders the necessary adaptation of the workforce at company level”.

Source

Redundancy block Italy rules countries work

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