Employers often complain that it is "too hard" to get rid of
staff, and say it is a procedural nightmare.
We wondered how New Zealand compares to other countries. Luckily
for us, the OECD has released its ranking of employment protection
(how hard it is to fire someone) across the OECD.
The factors considered were:
- Procedural inconveniences to employers when starting the
- Notice periods and severance pay;
- The difficulty of dismissing someone, i.e. the circumstances in
which an employee may be dismissed and the repercussions for an
employer for getting it wrong.
On a scale of 0 (least restrictions) to 6 (most restrictions)
New Zealand scored 1.4.
Only in the United States (0.49), Canada (0.92) and the United
Kingdom (1.12) is it easier to dismiss a permanent employee.
Interestingly, New Zealand's score has dropped since 2008 (when
we scored 1.5), which most likely reflects the introduction of
90-day trial periods.
Maybe it is not so hard after all.