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The Management of Redundancies in Europe: The Case of Germany

Author

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  • Heiner Heseler
  • Ulrich Mückenberger*

Abstract

The paper presents the findings of comparative and interdisciplinary legal and economic study on managing labour redundancies in seven EU member countries. It is structured for immediate comparability between the systems examined. The introductory section contains an account of the evolution of the German labour market, with special reference to redundancy trends, of the features of the programmes for managing redundancies, of the roles of firms and the ‘external environment’ in handling workforce adjustments. The second section presents a map of policies that work to prevent labour redundancies (preventive measures) such as flexibility, training etc. Next, the instruments for handling temporary labour redundancies (retentive measures) are examined (e.g. short‐time working, temporary layoffs etc.). The following section is devoted to instruments and programmes involved in the management of permanent labour redundancies (expulsive measures), e.g. collective dismissals, severance pay etc. The final section provides an overall assessment of the German system for managing labour redundancies, and briefly discusses the national debate on the prospects for reform, in light of the principles and policies of convergence set forth by the European Commission.

Suggested Citation

  • Heiner Heseler & Ulrich Mückenberger*, 1999. "The Management of Redundancies in Europe: The Case of Germany," LABOUR, CEIS, vol. 13(1), pages 183-235, March.
    • Handle: RePEc:bla:labour:v:13:y:1999:i:1:p:183-235
    DOI: 10.1111/1467-9914.00096
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    Cited by:

    1. Christian Grund, 2006. "Severance payments for dismissed employees in Germany," European Journal of Law and Economics, Springer, vol. 22(1), pages 49-71, July.
    2. Laszlo Goerke & Markus Pannenberg, 2005. "Severance Pay and the Shadow of the Law: Evidence for West Germany," CESifo Working Paper Series 1619, CESifo.
    3. Christian Pfeifer, 2009. "Fixed‐term Contracts and Employment Adjustment: An Empirical Test of the Core–Periphery Hypothesis Using German Establishment Data," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 92-107, March.

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