To: Tenchusatsu who wrote (472959 ) 4/17/2009 6:27:12 PM From: Brumar89 1 Recommendation Respond to I haven't heard specifically of that law, but I have read of restrictions on firing employees in western European countries. nytimes.com Italy has about the toughest restrictions in Europe on firing workers, according to the Organization for Economic Cooperation and Development. Article 18 of the Labor Code, passed in 1970, mandates that after a short probationary period, an employee fired from a company with 15 or more employees can bring a lawsuit challenging the dismissal. If the suit is successful, as is often the case, the employer is forced to rehire the worker and pay back wages and social insurance contributions, as well as a large fine.A bank employee involved in money laundering, for example, was recently held unjustly dismissed and ordered reinstated by a judge. Even worse, the uncertainty and expenses associated with dismissals have a chilling effect on hiring. ''The cost of the job security of the father,'' Professor Ichino argues, ''is the insecurity of the son.'' Italy's jobless rate hovered around 10 percent in the last decade. Because its safety net has as many holes as Swiss cheese, high unemployment contributes to the remarkable fact that more than half of people in their 20's -- and nearly a quarter of men age 30 to 39 -- live with their parents. ''The family is the main institution that provides unemployment insurance benefits,'' Professor Ichino said.
