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.

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