According to a new report issued by Mercer Human Resource Consulting, the minimum legal amount of severance payment shows a five-fold variation amongst some EU countries. France, Netherlands and the UK have the lowest figures, while workers in countries like Spain, Portugal, Italy, Belgium, Austria and Luxembourg leave their jobs with fuller pockets. The EU average amount of severance payment for an employee with 10 years of service and a yearly income of 30,000 is 16,752.
Based on this assumption, indemnities reach only 7,500 in France and Netherlands and 7,692 in UK. On the flipside, countries like Spain, Italy, Belgium, Austria, Luxembourg and Portugal pay, respectively 38,196; 27,414; 22,500, 22,500, 20,000 and 18,752.
Severance payments often reflect countries labour market culture, states David Formosa, Mercers European principal. Legislation is permissive in some member states allowing the labour market to be more flexible and competitive. In some other countries, the state has a prominent role in protecting workers.
Its unlikely that severance payments amounts will be patterned in the near future. Indeed, countries like Germany strive to find a formula that allows more flexibility, Mr. Formosa adds.
US companies arent legally obliged to grant severance payments, although some of them pay their staff two weeks, as much as 1,235 on a 10 years of service and 30,000 annual income basis. The indemnities are equally low in Japan, where a worker earning 30,000 yearly would receive only 2,308 after 10 years of service.
Usually employers raise indemnities in countries where the legal rights are reduced. USA is an exception as normally few or non severance payments are granted.
Filipe Samora
2003-08-25
Em Foco – Pessoa