Public sector pays most to sack staff

Government and educational institutions paid out the most money to sack people last year, according to a report sent to parliament by social affairs minister Piet Hein Donner.


The report (which ignored extremely high and exceptionally low payments) says employers paid an average of €17,000 in compensation per redundancy. However a worker sacked by the government or an education institution received an average of €33,400.
These costs include salaries paid while staff were non-active as well as administrative and legal costs.
The report, compiled by the Hugo Sinzheimer Institute also concluded that the cost of redundancies increased for employees with higher salaries. A worker with a monthly income of up top €2,700 received an average of two months’ salary while someone whose earnings were over €3,600 got 5.4 months’ worth of cash.
Earlier this week it emerged that the number of redundancies fell by 25% in 2006. The total cost to employers for sacking workers is estimated at between €3.5bn and €4bn.

Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation