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CALCULATING SUMMARY INDICATORS OF EMPLOYMENT PROTECTION STRICTNESS
Methodology
For each country, employment protection is described along 21 basic items which can be classified in three main areas: (i protection of regular workers against individual dismissal; (ii regulation of temporary forms of employment; and (iii specific requirements for collective dismissals. The information refers to employment protection provided through legislation and as a result of enforcement processes. In countries where collective bargaining occurs at an industry, regional or national level and provisions for dismissal protection in collective agreements are typically more generous than those in legislation, these have been included where possible. The detailed country notes available at /employment/protection provide more information on where collective bargaining provisions have been included in the indicator. Table 1 shows the method used to convert raw data on each item into a cardinal score on a scale of 0-6, with higher scores representing stricter regulation.
Table 1 Quantifying the 21 basis measures of employment protection strictness
A. Individual dismissals of workers with regular contracts
B. Temporary employment
4
C. Additional regulations for collective dismissals
2
After converting each item to a cardinal scale, the indicators are calculated using the weights shown in Table 2. There are three sub-indicators measuring the strictness of regulation on regular contracts, temporary contracts and collective dismissal respectively on a scale of 0-6. Three versions of the overall summary indicator are available, reflecting changes over time in the breadth of information incorporated into the indicator:
?Version 1 is an unweighted average of the sub-indicators for regular and temporary contracts.
The indicator for regular contracts does not include item 9 (maximum to make a claim of unfair dismissal and the indicator for temporary contracts does not include items 16 (authori
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