Dismissal protection depends on size of enterprise

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Quick info
Data type Numeric
Scale Metric
Value labels Not applicable in the strict sense since the scale is quasi-metric, but for coding the following values were used for orientation:
  • 1 = the threshold for dismissal protection is above 20 employees
  • 0,75 = enterprises with up to 20 employees are excluded from dismissal protection
  • 0,5 = enterprises with up to 10 employees are excluded from dismissal protection
  • 0,25 = enterprises with up to 5 employees are excluded from dismissal protection
  • 0 = dismissal protection applies independently of size of the enterprise/does not exist
Technical name labor_dispro_size
Category Labour and labour market
Label General dismissal protection depends on the size of the enterprise
Related indicators

This WoL indicator measures whether standards for termination are linked to a certain minimum number of employees. Mass and collective dismissals are not considered.

Employees are existentially dependent on the income from their employment relationship, so if the employer terminates it, it also means ending the employee's ability to make a living. If protection against unfair dismissal is linked to a minimum number of employees in a company, employees in small companies will receive less protection, even though their need for protection is no different from that of employees in larger companies. The regulation favours the economic peculiarities of small companies and in return makes cuts in employee protection. It privileges employees in larger companies.

Coding rules

The WoL is a leximetric dataset on individual employment protection. It quantifies the strength of the standard-setting, privileging, and equalising function of individual labour law (see Dingeldey et al. 2022). The scale ranges from "0" to "1" where "1" corresponds to statutory law that establishes a threshold for dismissal protection above 20 employees, while "0" corresponds to dismissal protection that applies independently of the size of the enterprise or does not exist at all. Coding instructions and description of indicators are laid down in a technical paper (Fechner/Carlino, forthcoming). For country-specific information see WoL documentation (forthcoming).

Bibliographic info

Citation: Irene Dingeldey, Heiner Fechner, Jean-Yves Gerlitz, Jenny Hahs, Ulrich Mückenberger, Worlds of Labour: Introducing the Standard-Setting, Privileging and Equalising Typology as a Measure of Legal Segmentation in Labour Law, Industrial Law Journal, Volume 51, Issue 3, September 2022, Pages 560–597, https://doi.org/10.1093/indlaw/dwab016

Related publications:
  • Mückenberger, Ulrich, 1985. "Die Krise des Normalarbeitsverhältnisses - Hat das Arbeitsrecht noch Zukunft?" Zeitschrift für Sozialreform 31: 415-434; 457-475
  • Mückenberger, Ulrich, and Simon Deakin. 1989. "From Deregulation to a European Floor of Rights: Labour Law, Flexibilisation and the European Single Market." Zeitschrift Für Ausländisches Und Internationales Arbeits- Und Sozialrecht 3: 153–207.
  • Carlino, M., Fechner, H., & Schäfer, A. (2024). Using leximetrics for coding legal segmentation in employment law: The development and potential of the Worlds of Labour database. In I. Dingeldey, H. Fechner, & U. Mückenberger (Eds.), Constructing Worlds of Labour. Coverage and Generosity of Labour Law as Outcomes of Regulatory Social Policy. Palgrave Macmillan.

Misc

Project manager(s):
Responsible for data coding: Heiner Fechner (2018-2025)
Responsible for data editing and entry: Heiner Fechner (2024-2025), Andrea Schäfer (2021-2025), Jean-Yves Gerlitz (2018-2020)
Principal Investigators: Irene Dingeldey, Ulrich Mückenberger
Student assistants (2018-2025): Julia Bode, Jessica Bonn, Daniel Euler, Maxime Fischer, Jan-Christopher Floren, Jennifer Götte, Désirée Hoppe, Irina Kyburz, Alexandra Kojnow, Tarek Mahmalat, Karolin Meyer, Johanna Nold, Tanusha Pali, Johannes Ramsauer, Max Sudhoff, Kristina Walter, Caroline Zambiasi.

Data release:
  • Version 0.001: Initial release

Revisions: No revisions yet.

Sources

Own coding.